Episode 54 - Barry Minkow - The Good, The Bad and the Repentant

This week The Pack is joined by a man who needs no introductions
to anyone in the world of finance. Barry Jay Minkow, former
American businessman, pastor, and 2x convicted felon, is now
turned, fraud hunter.  


 


 At 16, Minkow founded ZZZZ Best, an immensely successful
carpet cleaning and restoration company. However, it was a front
to attract investment for a massive mafia-funded Ponzi scheme.
ZZZZ Best collapsed in 1987, costing investors and lenders $100
million in one of the largest investment frauds ever perpetrated
by a single person and one of the largest accounting frauds in
history. It is often used as a case study of accounting fraud.


 


After being released from jail, Minkow became a pastor and fraud
investigator in San Diego and spoke at churches and schools about
ethics. This ended in 2011 when he admitted to helping
deliberately drive down the stock price of homebuilder Lennar and
was ordered back to prison for five years. Three years later,
Minkow admitted to defrauding his church and was sentenced to an
additional five years in prison. He is subject to restitution
requirements totaling $612 million.


 


 With his sidekick from prison, "The Big Homie," Minkow now
uses his abilities to expose fraud and launches a new podcast
called “Fraud Factor” Sit back and enjoy some tales from a HOF of
financial scams and a bad guy turned good.