dishonest Pulte Homes

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http://www.mass.gov/ig/publ/grafton+hilltop+farms+c40b+development.pdf
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"Pulte is headquartered in Bloomfield, Michigan and is one of the largest home builders in the country. In this case, Pulte underreported its development profits primarily through a process of expense padding. This included reclassifying and redefining profits into elements of development costs and by over accruing expenses. As an example, Pulte’s Cost Certification included a cost for land acquisition that was $6.9 million more than what it had actually paid for the site. Not only was this method not allowed under Chapter 40B rules and guidelines in existence at the time the project was approved and the site purchase and sales agreement was executed, but the inflated land value was transacted on the Cost Certification through a one sided accounting entry that violated provisions of generally accepted accounting principles.
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We also found that development costs were padded through an over-accrual of expenses. Based on a small test sample of accounts, this Office identified over $800 thousand of expenses accrued by Pulte that had no subsequent cash payment or disbursement."
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see the full text in the included link.
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