SEC Says Homex Reported Fake Sales Of More Than 100,000 Homes

By Steve GoldsteinMarketsMarketWatch Pulse

The Securities and Exchange Commission said a Mexican homebuilder reported fake sales of more than 100,000 homes. Desarrolladora Homex S.A.B. de C.V. inflated the number of homes sold during a three-year period by approximately 317% and overstated its revenue by 355%, or approximately $3.3 billion, the SEC said. Homex filed for the Mexican equivalent of bankruptcy protection in April 2014 and emerged in October 2015 under new equity ownership. Homex cooperated with the SEC investigation, the agency said, and neither admitted nor denied the findings.

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