On August 30, the Securities and Exchange Commission announced a settlement with the former chief financial officer of Beazer Homes USA to recover more than $1.4 million in bonus and stock profits that he received after the home builder filed fraudulent financial statements during fiscal year 2006.

Although the chief financial officer, James O’Leary, was not himself charged with wrongdoing, the SEC claimed in its complaint that it was required under Section 304 of the Sarbanes-Oxley Act to recoup the money on behalf of Beazer. The SEC argued that money can be recouped based on required certifications that O’Leary made pursuant to Section 302 of the Sarbanes-Oxley Act in Beazer’s quarterly and annual reports concerning the accuracy of Beazer’s financial statements. The SEC’s settlement with O’Leary is subject to court approval.