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Saturday, March 26, 2011

Top Financial Frauds - Barry Minkow - pleads guilty to another misdeed

Joe: this is an update to the previous post, “Top Financial Frauds”. Apparently Barry M. became a preacher and actually had some kind of movie deal. I can not believe how Hoollywood glorifies these schmucks with fame. An article in the LA Times is titled, Film based on Barry Minkow's life needs new ending . Once a con-man always a con man… -Bob

Barry Minkow Will Plead Guilty to Federal Charges of Insider Trading over Scam Against Lennar Corp.
LA Weekly Tue., Mar. 15 2011 @ 7:20PM
By Beth Barrett
Federal prosecutors have struck an agreement with Barry Minkow to plead guilty to criminal insider trading for actions that damaged the stock price of one of the nation's largest home building companies two years ago, sources familiar with the case told the Weekly.
Minkow, the supposedly reformed Los Angeles con man, intends to plead guilty, according to a statement issued by his San Diego-area church.

The one-time business whiz kid served seven years in prison after his conviction in the mid 1980s of running a Ponzi scheme that defrauded investors in his ZZZZ Best carpet cleaning company of as much as $100 million.
After his release from prison, Minkow announced that he had undergone a religious conversion. He became senior pastor of the Community Bible Church in Mira Mesa and began working as a fraud buster, aiding the FBI and other organizations.
In recent years, however, Minkow began issuing reports critical of major American companies, including Lennar Corp., the home building giant.
In most if not all cases, Minkow would take a "short' position on a company's stock before issuing his report. His reports usually sent stock prices lower, which meant Minkow profited by short selling the stock.
But Lennar proved to be a formidable adversary. After Minkow issued a report laced with unsubstantiated allegations against the company and its executives, Lennar filed libel and extortion lawsuit against Minkow in Miami. Minkow's report had sent Lennar's stock price tumbling $500 million in two days--the equivalent of 20 percent of its value.,
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