More bad news for Beazer Homes (BZH)

Beazer Homes (NYSE: BZH) just can't seem to catch a break. The stock actually went up when the company announced that it would have to restate earnings going back three years. With the uncertainty over its accounting seemingly out of the way, the Street breathed a sigh of relief.

But Beazer also found that employees had been violating the Department of Housing and Urban Development's regulations related to down payment assistance. Oh, and the company also recently fired its chief accounting officer for shredding documents.

Of course, concerns over internal controls and accounting are not the only thing hurting Beazer; there's also that little problem of the housing downturn. Beazer is reporting that during the last quarter, 68% of prospective home buyers canceled their orders, compared with 36% for the previous quarter.

Oh, and the company is facing lawsuits from home buyers accusing Beazer of unfair and deceptive sales practices.

Given the concerns about governance and management, combined with the concerns about the industry and business, shares of Beazer are probably too risky for most investors.