Beazer Homes' CEO Ian McCarthy Receives Wells Notice From SEC
Bad news for Beazer's CEO, Ian McCarthy, courtesy of the angry and completely impotent hornet's nest that is the SEC. From a Beazer Homes 8-K filed earlier.
On November 13, 2009, the Staff of the US Securities and Exchange Commission (the “Commission”) issued a Wells notice to the Company’s Chief Executive Officer, Ian J. McCarthy, indicating that they have preliminarily determined to recommend that the Commission bring a civil action against him to collect certain incentive compensation and other amounts allegedly due under Section 304(a) of the Sarbanes-Oxley Act of 2002 . In their Wells notice, the Staff did not allege any lack of due care by Mr. McCarthy in connection with the Company’s financial statements or other disclosures. The Commission has taken the position in a recently filed civil action against the chief executive officer of another company that the Commission need not allege misconduct by a CEO to maintain such an action. The Commission Staff has offered Mr. McCarthy an opportunity to make a submission setting forth the reasons why no such action should be filed. Mr. McCarthy intends to respond to the Staff’s offer by making such a submission.
The Company is not named in the Wells notice. As disclosed previously, on September 24, 2008 the Company entered into a settlement with the Commission, without admitting or denying wrongdoing, that resolved the Commission’s investigation into the financial statement matters that were the subject of the independent investigation conducted by the Audit Committee of the Company’s Board of Directors.
In other news, no member of any executive committee at any Wall Street firm is even remotely in danger of getting anything even remote to a Wells Notice.