Manage episode 364354443 series 2789141
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.