ATLANTA - Federal prosecutors in North Carolina filed criminal fraud conspiracy charges against Beazer Homes USA on Wednesday, but they agreed to dismiss the case if the company complies with an agreement accepting responsibility for certain wrongdoing and pays millions to victims. In the deferred prosecution agreement, the company accepted responsibility for fraudulent mortgage originations and accounting practices and agreed to pay $10 million immediately toward restitution to victims. Beazer also agreed to pay up to $50 million as the company, which has been battered by the housing downturn, recovers financially, according to prosecutors and court records. The deferred prosecution agreement is in effect for five years. A spokeswoman for prosecutors, Suellen Pierce, said that the charges against the company will be dismissed if it complies with the agreement.
- Associated Press
Crabtree & Evelyn files for Chapter 11 protection
NEW YORK - Soap and lotion seller Crabtree & Evelyn Ltd. says it filed for Chapter 11 protection Wednesday, a victim of the recession and management missteps. The pressure of repaying debt forced the company to file for bankruptcy, acting President Stephen Bestwick said in a court filing. The Woodstock, Conn.-based company reported in a court filing that it owed $46.2 million in debt and had $31.7 million in assets as of March 31. The privately held company runs 126 retail stores.
- Associated Press
Construction spending falls more than expected
WASHINGTON - Construction spending fell more than expected in May, a sign the problems facing the nation's builders are far from over. The Commerce Department said Wednesday that construction spending dropped 0.9 percent in May, nearly double the 0.5 percent decline that economists expected. Adding to the signs of weakness, activity in the past two months was revised lower. That left April 0.6 percent gain as the only increase in the past eight months.
- Associated Press
