(CNS) Posted Thursday September 2, 2010 - 9:25am
Securities regulators completed an investigation into possible accounting violations by KB Home and have no plans to recommend enforcement action, the Westwood-based homebuilder announced Wednesday.
The homebuilder said it had received a letter from the U.S. Securities and Exchange Commission advising that an investigation into the firm's accounting and disclosure practices was finished and there would be no enforcement action taken by the SEC.
SEC spokesman Kevin Callahan said the agency's policy is not to confirm or deny the existence of such a letter, and thus he would have no comment.
According to KB Home, the letter concludes the SEC's investigation, which began last October and was disclosed in the builder's public filings.
"We are pleased to announce that the SEC has concluded its investigation," KB Home CEO Jeffrey Mezger said.
"We are glad to share with our investors and employees that the matter is now behind us, as we continue to focus on restoring the sustained profitability of our homebuilding operations and generating future growth.'
In April, KB Home's former chief executive was convicted of criminal charges stemming from an investigation into stock manipulation at the company.
Bruce Karatz was found guilty of two counts each of making false financial statements and mail fraud.
Sentencing is set for Nov. 10 in Los Angeles federal court.
