SEC Says Construction Co. Rife With Accounting Fraud

Law360, New York (November 30, 2009, 7:02 PM EST) -- The U.S. Securities and Exchange Commission sued Home Solutions of America Inc. on Monday, claiming executives fabricated millions of dollars in fake business and bumped up the hurricane restoration company's stock price with a host of fraudulent schemes.

In a complaint filed in the U.S. District Court for the Northern District of Texas, the SEC accused HSOA and seven individuals of improperly deferring expenses, documenting revenues for construction jobs that remained “bare-dirt lots” and reporting fictitious profits.

The misstatements inflated HSOA's net income by up to...
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