Cavco Industries Reports Acceptance of Settlement in Sec Action
(News Provided By Benzinga) – Cavco Industries Inc. CAVCO announced on 9/23/2022 that the United States District Court for the District of Arizona approved the settlement of the Securities and Exchange Commission action against the Company. The action was based on Securities trading in 2017 directed by Joseph Stegmayer, former chief executive officer, which resulted in an unrealized gain of approximately $265,000 for the Company. Without admitting or denying the findings of the consent judgment, the Company agreed to the imposition of an injunction against future violations of the antifraud and internal accounting control provisions of the Securities Exchange Act of 1934 and a monetary penalty of $1.5 million.
The settlement resolves all claims in the action against the Company. Daniel Urness, its former chief financial officer, is the only remaining defendant in the ongoing action. Mr. Stegmayer settled the SEC claims against him last year.
“After working to resolve this matter for an extended period of time, we are happy to have reached a settlement on reasonable terms,” said President and Chief Executive Officer Bill Boar.
About Cavco Industries, Inc.
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Our products are marketed under a variety of brand names, including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, and MidCountry. We are also a leading producer of park model RVs, vacation cabins, and factory-built commercial structures. Cavco’s finance subsidiary, Country Place Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchase factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Additional information about Cavco can be found at https://www.cavco.com.