Is There Life After Fraud?
Probably not for Bernie Madoff, but for those of us a certain age, we remember Barry Minkow, one of the youngest people to bring a company public. ZZZZBest was a carpet cleaning company, and it traded in the age before high flying stocks became movers and a shakers.
His empire came tumbling down in a case of fraud in the late 1980's stemming from an inflation of reported revenues 86% above actual revenues. From a market cap of $300 million the company became worthless, and Minkow was sentenced to 25 years in prison and spent about 7.
The Hunted Becomes The Hunter
In an ironic twist of fate, after finding religion and becoming a pastor, Minkow now searches the markets for fraud with the Fraud Discovery Institute. His current target is Lennar, the house construction company which is launching a firm and strong defense against the allegations of fraud. They theorize that this is an attempt to drive Lennars' stock down by shorts.
One Of His Investors May Sound Familiar (can't confirm the actual source, but appeared in WhiteCollarFraud.com)
Sam E. Antar (former Crazy Eddie CFO and a convicted felon)
I am not short or long Lennar Corporation (Len). The Fraud Discovery Institute and Barry Minkow disclosed that they are working on behalf of a paying client and do not have any position in Lennar securities, short or long.
Over a year ago, I provided funds to Fraud Discovery Institute (FDI) to help pay costs of its investigations, though I had no control over any monies spent. I am not an owner, manager, employee, or consultant of Minkow or FDI and I have not received any compensation from them.
Posted by Sam E. Antar at 1/09/2009 02:00:00 AM