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Mexican homebuilder Homex says target of SEC probe

Homex said it plans to respond to the SEC in order to clarify the alleged violations.

Mexican homebuilder Homex says target of SEC probe
06/05/2016 |17:06Reuters |
Redacción El Universal
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Mexican homebuilder Homex said on Thursday the U.S. Securities and Exchange Commission had notified it about a planned enforcement action related to fraudulent real estate sales.

In a statement, Homex said the SEC probe, shared in an April 25 notification, concerns its accounting practices around losses and gains from real estate sales from 2010 to 2012.

Homex said the SEC had sent similar notifications to some employees of the company, who would be taking a leave of absence in order to fully focus on responding to the probe. The homebuilder did not specify which employees or provide further details about the investigation.

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Homex said it plans to respond to the SEC in order "to clarify the alleged violations," and has also launched its own review of financial statements from the period.

The SEC did not immediately respond to a request for comment late on Thursday.

Homex just emerged from bankruptcy last year after getting hit by a banking crisis and lack of demand for its homes. Its shares did not trade between February 2014 and October 2015.