SEC says Mexican Homebuilder Homex reported fake sales of more than 100,000 homes

The global credit and housing bubble of the last decade certainly helped destroy wide swatches of the US economy. And Mexico, as it turns out.

WASHINGTON (MarketWatch)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. HOMEX, -17.78% 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.

Yes, the Mexican homebuilder enjoyed peak success during the peak of the housing bubble, peaking at almost 1,200 Pesos in June 2008.  Homex is now trading for a whopping 0.72 Pesos per share.

homex

And on the news of the SEC’s findings, HOMEX plunged even further.

homexid

Homex cooperated with the SEC investigation, the agency said, and neither admitted nor denied the findings.

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