The former chief accounting officer for Beazer Homes USA Inc. could face a long prison sentence after being convicted of falsifying the homebuilder's books over a seven-year period.
A federal jury in Charlotte on Friday convicted 48-year-old Michael T. Rand, of Alpharetta, Ga., of directing a conspiracy to falsify Beazer's reported profits. The maximum sentence for his conviction on seven charges could be 125 years. A sentencing date was not set and Rand is free on bond.
Prosecutors said Rand faked financial records that made Beazer look less profitable during boom times but improved the balance sheet during lean times. The Securities and Exchange Commisison said Rand began reversing these improper reserves beginning in the first quarter of 2006 in order to offset Beazer's declining financial performance.