Tuesday, September 20, 2011

Barry Minkow heads back to prison (ZZZZ)

And here I thought he was rehabilitated.
Financial fraudsters have a recidivism rate simlilar to that of pedophiles.
From the Los Angeles Times' Money & Co. blog:

Minkow in church office, February 2009 Bloom berg Sandy Huffaker

Barry Minkow's twisting road through life will carry the former San Fernando Valley teen tycoon back to prison Wednesday to serve his second sentence for securities fraud.

In an email to The Times, Minkow said federal prison authorities had ordered him to begin his five-year sentence at a Lexington, Ky., facility that "from the outside looks like Leavenworth Penitentiary" rather than the minimum-security prison camp he had hoped for and a judge had recommended.

Minkow burst onto the national stage in the 1980s after starting ZZZZ Best, a carpet-cleaning company, in his parents' garage in Reseda. He wound up spending more than seven years in prison after it was revealed that ZZZZ Best was a sham built on credit-card fraud and fabricated work orders.

Expressing remorse, he reinvented himself as head pastor at San Diego's Community Bible Church and founded the Fraud Discovery Institute, a detective shop that set out to expose Ponzi schemes and corporate wrongdoing.

But in March he pleaded guilty to one count of conspiring to damage Lennar Corp. by attacking the Miami-based home builder in reports he acknowledged were filled with falsehoods. He had been hired by a San Diego County developer whose partnership with Lennar in Rancho Santa Fe had soured.
Minkow told U.S. District Judge Patricia Seitz in Miami that he had become addicted to narcotic painkillers he used to treat his migraine headaches, finally kicking the habit when he realized he was under criminal investigation....MORE