Kb homes and backdating
The letter from the regulator concludes the SEC’s investigation, which began in October 2009.“We are pleased to announce that the SEC has concluded its investigation,” said Jeffrey Mezger, president and chief executive officer of KB Home, in a statement. The answers would be instructive to other companies that could wind up as targets of SEC probes. The good news here is that the SEC informed the company that the investigation was closed. Believe it or not until a few years ago the regulator did not often communicate to companies under investigation that the probe was completed and that no further action would be taken, leaving the company hanging and suspicion hovering for all potential customers and investors to speculate.There are no details about the nature of the allegations. Their attitude at the time was that as a policy, the Commission does not disclose the existence of an investigation in the first place, so it typically won’t announce that one has ended. The company was embroiled in the options backdating scandal.
The homebuilder said the Securities and Exchange Commission has concluded its investigation into the company’s accounting and disclosures and does not plan to recommend any enforcement action.KB Home did not immediately respond to , the publicly-traded company said Mezger had apologized to Griffin and that he regrets “losing his temper and the language he used.” “It does not reflect who he is or what he believes,” the statement said.The company said Mezger believes there’s no excuse for such behavior, but also cited a “series of unneighborly actions” by Griffin and Bick.Mezger took over as CEO of KB Home (KBH), one of the nation’s largest homebuilders, in 2006 after then-CEO Bruce Karatz retired after an internal investigation into backdating of stock options. LOS ANGELES — The former head of construction giant KB Home was convicted Wednesday of four felony counts in a stock option backdating scam.