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| Barry Minkow | |
|---|---|
| Occupation | Carpet-cleaning company owner, fraud investigator, pastor |
| Criminal status | 1988: Released in 1995 2011: Released June 6, 2019 |
What was the biggest corporate fraud and bankruptcy in history?
In 2005, with the help of Sullivan’s testimony, 63-year-old Ebbers was sentenced to 25 years in prison for coordinating the $11 billion fraud that left WorldCom in ruins. It was what CBS has described as “the biggest corporate fraud and bankruptcy in U.S. history.”
Is ZZZZ Best a carpet cleaner?
Minkow launched a massive television advertising campaign portraying ZZZZ Best as a carpet cleaner that Southern Californians could trust. He owned a Ferrari and a BMW, and bought a mansion in the wealthy Valley community of Woodland Hills.
Who are the top 10 money laundering figures of all time?
1 Bernard Madoff. 2 Bernard Ebbers. 3 Andrew Fastow. 4 Tang Wanxin. 5 Raj Rajaratnam. 6 Michael Milken. 7 Hiromasa Ezoe. 8 Anthony Elgindy. 9 Dennis Kozlowski. 10 Barry Minkow.
Who masterminded the Ebbers loan scam?
When the stock price fell in the early 2000s, Ebbers’ shares in the company were marked as collateral for over $400 million in personal loans. WorldCom chief financial officer Scott Sullivan, whom Ebbers claims masterminded the entire scam, pointed his finger at Ebbers.
How much was ZZZZ Best worth in 1987?
By February 1987, ZZZZ Best was trading at $18 a share on NASDAQ, valuing the company at $280 million. The company now had 1,030 employees with offices in California, Arizona and Nevada. Minkow's stake was worth $100 million.
What crimes did Minkow and 10 other ZZZZ Best insiders commit?
Minkow and 10 other ZZZZ Best insiders were indicted by a Los Angeles federal grand jury in January 1988 on 54 counts of racketeering, securities fraud, money laundering, embezzlement, mail fraud, tax evasion and bank fraud.
Was Minkow's insurance restoration division fraudulent?
However, its insurance restoration division, which eventually accounted for 86% of company revenues, was fraudulent. Minkow raised money by factoring his accounts receivable for work under contract, as well as floating funds through several banks in an elaborate check kiting scheme.
Did Minkow make a Ponzi scheme?
While Minkow admitted to manipulating the company's stock, he claimed that he was forced to turn the company into a Ponzi scheme under pressure from the organized-crime figures who secretly controlled his company, a story he later admitted was false. On December 14, he was found guilty on all charges.
How to protect yourself from carpet cleaning scammers?
The best way to protect yourself from these scammers is to research companies online and always ask good questions. If you’re informed about their carpet cleaning process before agreeing to anything, you’ll be able to spot shady business practices right away.
What are some scammers' excuses?
These excuses will go something like: You have a special type of carpet that requires a more complex cleaning method.
Can you win a carpet cleaning scam?
You can’t win when you’re dealing with dishonest companies that bait and switch their customers using these carpet cleaning scams. Also keep in mind that you can protect yourself beforehand by doing some digging to find certified companies with good reviews on multiple review platforms.
Do stains go away after carpet dries?
Now, you know deep down that those stains aren’t just going to disappear on their own after your carpet dries, but the cleaners are going to try to put your mind at ease. They’ll tell you that if the stains are still there in a few days, you can just call them and they’ll come back. Sounds fair enough.
The "unbelievably low prices" scam
You'll hear this one from salespeople who come to your door, claiming to offer the lowest price in town. They might tell you about competitors' offers or give you fliers that show what other companies charge. In reality, the person at your door is getting paid for the number of sales he or she makes.
The "best method" scam
There are several common methods for carpet cleaning. The most popular is steam cleaning, which actually uses hot water and a chemical detergent. Clean water and detergent are pushed into your carpet using high-powered tools, and dirty water is pulled out using a vacuum.
The "surface clean" scam
Of all the carpet cleaning scams, this one requires homeowners to be the most diligent. Even seemingly reputable companies try this trick occasionally, though sometimes they don't do it on purpose.
What to look for in a professional carpet cleaner
When hiring a carpet cleaning company, make sure to get a specific rate per room or per square foot, and ask about the preferred cleaning method. Ask if there's an extra charge for moving heavy items like furniture; many companies will clean only open floor space, or demand a huge surcharge to move furniture.
