Desarrolladora Homex S.A.B. de C.V. ("Homex") settled SEC charges that the Mexico-based homebuilding company defrauded investors by falsely inflating the number of homes sold and overstating revenue by approximately $3.3 billion. The SEC highlighted that it "used satellite imagery to help uncover the accounting scheme." Satellite images of a project site "show it was still largely undeveloped and the vast majority of supposedly sold homes remained unbuilt."
In connection with the settlement, Homex will be prohibited from offering securities in U.S. markets for at least five years. The settlement is subject to court approval.
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