in

'Fraud Finder' Accused of Using Internet to Bad Mouth Former Fortune 500 Firm

A San Diego, Calif., man is expected in court next week after been charged with conspiracy to manipulate the stock price of a former Fortune 500 company by making false and misleading statements about its business operations and management, the FBI’s Miami office announced.

According to the charging document, Barry Minkow, 44, ran a California-based for-profit fraud investigation firm. In his role, he developed ties with federal law enforcement agencies as a purported fraud finder. Yesterday, however, Minkow was charged with making false and misleading statements alleging widespread improprieties in Lennar Corporation’s financial reporting and business structure, and attacking the personal character of Lennar’s management.

Minkow was hired to put economic pressure on Lennar to pay money demanded by a business partner in a prior land deal. He allegedly used the Internet, press releases, emails, YouTube videos and the U.S. mail to spread bogus statements about Lennar, with the intent of artificially depressing the company’s stock price.

Minkow’s manipulation of the market caused a “severe drop” in the stock prices of the company, said U.S. Attorney Wifredo Ferrer.

“This type of deceit and abuse of trust will not be tolerated,” he said. “Together with the FBI and the cooperative efforts of the SEC, we will investigate and prosecute stock manipulation cases to help protect the integrity of our capital markets.”

If convicted, Minkow could face five years in prison.

ExecutiveBiz Logo

Sign Up Now! ExecutiveBiz provides you with Daily Updates and News Briefings about Government Cloud

mm

Written by Admin

CGI to Manage Metro Inc.'s IT Processing Center - top government contractors - best government contracting event
Executive Spotlight: Barbie Bigelow of TASC
CGI to Manage Metro Inc.'s IT Processing Center - top government contractors - best government contracting event
Intelligent Decisions Awarded Cisco Partner of the Year