Barry Minkow

[Doc Bunkum]

Barry Minkow (for those who don't know) is a convicted fraudster, a relentless self-promoter and a verbose name-dropper. That said, after separating the wheat from the chaff, he also comes up with good stuff.

Seems Barry is in the news again.

Barry Minkow Destroyed Evidence And Lied To Court In Extortion of Lennar Corp., Judge Rules

Dec. 29 2010 @ 4:38PM

Florida State Court Judge Gill Freeman found that MInkow, the ZZZZ Best carpet-cleaning California con-man turned pastor and fraud buster, gave false testimony, withheld documents, destroyed evidence, concealed the identity of key witnesses, willfully violated court orders and tried to "cloud his misconduct."
Minkow even did this:

He engaged in the ultimate fraudster screw-up, the judge found: he "intentionally" misrepresented those matters to his own attorneys.

[wserra]

I gave Doc's post its own thread. Minkow has bashed several MLMs over the last few years - and other companies as well, of course, since Lennar itself isn't an MLM. Still, enough of the bashees have been MLMs, so this is an appropriate forum.

I spent the last few minutes unsuccessfully searching for the actual opinion to which Doc's blog article refers. I'd be interested in it. Anybody have it? I don't have access to Florida state court docs.

[wserra]

I hadn't looked in on Minkow's site in some time - certainly over a year. I can do my own research, and I haven't trusted him since he admitted he shorted USANA before trashing it. The "Breaking News" on his home page is dated June 4, 2010 - "breaking news" that's over six months old. I remember a couple of years ago he would be posting stuff multiple times a week.

Further poking around led me to this pretty devastating article, also from LA Weekly, the source to which Doc linked.

Oh, well. It appears that Minkow lost his ability to see the line - assuming he ever had that ability.

[Doc Bunkum]

When I hear a rather grandiose title such as Fraud Discovery Institute, Inc., I expect, well, at least their being quartered in some rather impressive building.

So checking, their address is listed as:

Fraud Discovery Institute, Inc.
9770 Caroll Center Rd.
Suite F
San Diego, CA 92126

The rear entrance of a building in a rather nondescript industrial park if you check Google maps.

[wserra]

As for Barry Minkow, I believe a pejorative first used by wrestler Chris Jericho is appropriate, "*ss-clown."

As we discussed in considerable detail, Minkow came up with sufficient good stuff on USANA that the Court dismissed their defamation and tortious interference claims against him and awarded him $143K in costs and attorneys' fees under CA's anti-SLAPP statute. That's not an ass-clown.

The part where he shorted USANA stock before doing so, is.

[wserra]

Something interesting:

Over the last few years, Minkow has worked closely with a CPA named Tracy Coenen, who has her own web site and blog. I was curious as to what she might have to say about the Lennar fiasco. Answer: not much.

A search of her blog for Lennar-Minkow yields about fifteen entries - but nothing since March. Moreover, attempting to access any of the entries yields only "The webpage cannot be found". It surely looks as though Coenen is keeping her distance.

It's not clear to me, though, how the search turns up pages that Coenen has removed. webhick?

[Doc Bunkum]

I find Pastor Barry's bio on the Community Bible Church of San Diego page quite telling.

After serving 8 years of his sentence with an unblemished record and with the recommendation of the sentencing judge, Barry was released into society. In the judge's own words, "Barry can do more for his victims out of prison than he can in prison."

.

Uh, yeah.

That was quite prophetic on the part of the judge.

[webhick]

It's not clear to me, though, how the search turns up pages that Coenen has removed. webhick?

I don't think she removed them. If you go to the top level of her blog and try to access any blog post, you get a 404. Someone fscked her wordpress installation or htaccess file.

[littleroundman]

Official court transcripts of the Minkow/Lennar Corp matter can be found on the Miami-Dade Clerk of the Courts website here: http://www2.miami-dadeclerk.com/public- ... earch.aspx

The transcripts make particularly unsavoury reading for anyone who considered Mr Minkow to be one of the "good guys"

[wserra]

Thanks, LRM. I've pulled down the 29-page order granting Lennar's motion for various sanctions against Minkow.

This is an ugly order. The court's conclusion can be summarized in a sentence: Minkow is a goddam liar. The court cites an exhaustive list of incidents which, if true, leave no doubt of that conclusion. The order defaults Minkow, meaning that the only issue left is Lennar's damages. In addition, the court awards plaintiff's costs and attorneys' fees against him. The amount is to be determined in a later hearing, and will surely be substantial. As I said above, Minkow either lost sight of the line or never saw it in the first place.

Thanks, webhick, for the info on Coenen's blog. As she is actually named in the order - and the court notes that she apparently has missing records as well, something non-suspicious because no one told her to save them - even if the blog entries still exist it is clear that she is running away from Minkow, and fast (as she should). Minkow may yet be held in contempt, or even prosecuted.

I'd say that this is the end of the road for Minkow. It's hard to see how anyone at this point can take his word for anything. Still, facts are facts. If he comes up with them, I'll read them. But they'll need to be verifiable before anyone with any sense acts on them.

[Judge Roy Bean]

More on Minkow ...

http://www.bloomberg.com/news/2011-03-1 ... -says.html

Barry Minkow, a convicted con man who became a minister and anti-fraud crusader, is in talks with U.S. prosecutors in Miami to plead guilty to insider trading of Lennar Corp. (LEN), his lawyer said.

[wserra]

Never said otherwise. I said he came up with good info. A USDJ agreed, to the tune of awarding Minkow costs and attorneys fees in USANA's suit against him. I all but predicted his current problems.

Well, it appears that USANA agrees with what I posted four months ago that "the merits of the alleged defamation would have been a hard sell had Minkow not shorted USANA stock".

USANA just filed an amended complaint which, IMHO, is much better written and much more focused than the original. Instead of just ranting about how unfairly Minkow was treating poor old USANA, it attributes the entire action to the oldest and most jury-friendly motive there is - money. It concentrates on the details of Minkow shorting USANA stock, and mentions certain others (identified for the moment only as John Does) doing the same. It drops many of the silly things Michael Webster and I commented on.

I think Minkow may have a problem here.

I cannot resist pointing out that, when the suit was first brought a year ago, I wrote above that Minkow's hubristic stock machinations were going to cause him problems.

Please note the dates.

[Doc Bunkum]

Barry Minkow Charged With Conspiracy in Lennar Insider-Trading Case

Mar 24, 2011 -

Barry Minkow, an ex-convict who founded a fraud-detection firm and became a minister, was charged today by federal officials with conspiracy in a case involving homebuilder Lennar Corp. (LEN)

The case is U.S. v. Barry Minkow, 11-cr-20209, U.S. District Court, Southern District of Florida (Miami).

[wserra]

Here is the information.

The fact that it is an information means that Minkow has waived indictment. The fact that he waived indictment means that there is already a plea agreement in place.

[wserra]

Another example of a seriously flawed human being nonetheless coming up with worthwhile info.

A couple of years ago, Minkow began publishing a series of reports about weight-loss MLM Medifast. Since Minkow's site is offline, I can't link to them, and it doesn't really matter anyway. Minkow claimed they operated a pyramid, alleged various conflicts of interest and acts of misleading shareholders, along with other similar allegations. Medifast sued him for defamation and various business torts.

Two days ago, the Court (CASD) granted Minkow's anti-SLAPP motion and dismissed the case against him, finding that Medifast did not have a reasonable chance of prevailing on the merits. As with USANA, this means that Medifast will owe Minkow a considerable sum for costs and attorney's fees (which will immediately go to Lennar).

I've represented lots of con men. It sometimes seems as though the con is an addiction - it's in their blood. I would never trust Minkow. I would, however, read what he writes.

[notorial dissent]

Just because Minkow is a liar and a fraud, doesn't mean he can't recognize another in the profession, or tell you how they other is running their con, and could in fact be quite good at doing so. After all, the apocryphal story of how Joe Kennedy got appointed to the SEC otherwise.

I think you are quite right, that for the true conman, it is the adrenaline rush or mental stimulation, or whatever they get out of it that is the reason, and the addiction of it.

[soapboxmom]

Rod Cook has certianly not been afraid to weigh in on this:
http://www.mlmwatchdog.com/MLM_pyramid_ ... aylor.html

ROBERT L. FITZPATRICK NAILED TO THE WALL IN THE MEDIFAST CASE!

1 April 2011 -- No April Fools Day joke here! Editor's opinion note: Here is the lawsuit by Medifast, read the end of it! Anti-MLMer Robert L. Fitzpatrick is going to be paying some serious damages to Medifast. What does that mean? Robert L. Fitzpatrick will be living out of the trunk of a car... and eating at swank garbage cans! Minkow we will skip since he will be back in Club Fed (Federal Prison)....

ROBERT L. FITZPATRICK

31 March 2011 - Editor’s Opinion Note: This part of the deposition was poor in your Editor's opinion. Section II, page 45 of Robert Fitpatrick’s book “False Profits” is titled “The Scene of the Crime.” The terms used in this Section II “Scene of the crime” are “we and “us". They leave no doubt that Robert Fitzpatrick was a participant in the criminal “Airplane” Pyramid Scheme. Thus, just like Barry Minkow, Robert Fitz participated in criminal activity. The only difference is that Barry Minkow was caught and jailed. Barry Minkow and Robert Fitzpatrick still have one more thing in common, which is recidivism and falling back into their criminal activity by lying and attacking the MLM Industry. Ed. Opinion Note: Barry Minkow is headed back to prison, too bad his recidivist buddy Robert L. Fitzpatrick is not going with him!...

Ed. Note: In my opinion the FBI is no doubt looking at Minkow’s earlier short selling of Herbalife, Prepaid Legal, Medifast. No doubt they are looking at his co-horts Jon Taylor and Robert Fitzpatrick in those fraudulent short sells of MLM publicly traded...

Editor’s Notes: Minkow’s Fraud Discovery (Creation I call it) Attacked MLM Public Companies and successfully lowered their stock prices. The case he is being convicted on is a large house builder. However I bet some of these MLM Companies may have contributed information to the legal action taken against Minkow since he attacked them:

PrePaid Legal, Herbalife, USANA, Medifast

It is too bad that his cohorts in some of these Minkow scam MLM short sells Robert Fitzpatrick and John Taylor were not included in his latest short selling scam. They could have gotten hand cuffs too!...

Editors opinion note: Minkow was aided by Robert Fitzpatrick who, by his past actions, is an un-convicted felon in your editor's opinion....

opinion note: It would be nice if the SEC gave Minkow and Fitzpatrick adjoining cells as a result of their investigation of Fraud Discovery Institute....

BARRY MINKOW - FDI -ROBERT FITZPATRICK - CAUGHT IN SHORT SELL

Unsubstantiated allegations of criminal activity? Rod Cook is sure quick to skewer people. And he was worried about Robert Fitzpatrick??? I thought our legal professionals here might like to respond to Cook's tirade.

Soapboxmom

[wserra]

Anti-MLMer Robert L. Fitzpatrick is going to be paying some serious damages to Medifast.

Cook has no way of knowing that, and the Court certainly didn't say it. The ruling was that, as to Fitzpatrick (unlike Minkow et al.), Medifast's suit won't be dismissed per CA anti-SLAPP, and Fitzpatrick (unlike Minkow) isn't due his costs and attorney's fees. Medifast will still have to prove its case.

Minkow we will skip since he will be back in Club Fed (Federal Prison)....

Dishonest. While it may be true that Minkow will be going back to jail, that's not why "we will skip" him. We'll skip him because the Court dismissed Medifast's suit against him.

Robert Fitzpatrick was a participant in the criminal “Airplane” Pyramid Scheme. Thus, just like Barry Minkow, Robert Fitz participated in criminal activity. The only difference is that Barry Minkow was caught and jailed. Barry Minkow and Robert Fitzpatrick still have one more thing in common, which is recidivism and falling back into their criminal activity by lying and attacking the MLM Industry.
...
Robert Fitzpatrick who, by his past actions, is an un-convicted felon in your editor's opinion

It's actually kind of funny, in a retarded sort of way. Cook crows about how Fitzpatrick will have to face the Medifast music. That is true - because he accused them of criminal activity:

In his report dated February 16, 2009, FitzPatrick concludes “that TSFL’s business model and reward system—by their design, operation[,] and promotion—meet the definition of an ‘endless chain’ within the meaning of” Penal Code section 327. (Cohen Decl. ISO Opp’n Ex. 61, at 8.)10 In the context of FitzPatrick’s “Expert Report,” a reasonable fact finder could conclude that these statements declare or imply a provably false statement of fact, to wit, that TSFL’s business model and reward system are an endless chain in violation of Penal Code section 327.11 See Overstock.com, 61 Cal. Rptr. 3d 39, 43–44 (holding that research reports constituted actionable statements of fact because defendants held them out as “prepared by certified public accountants and financial analysts,” and “[t]he tone and content [was] serious”). They are also libelous per se because they accuse Medifast of a crime

Exactly as Cook does to Fitzpatrick.

It would be amusing if Fitzpatrick sued him.

[soapboxmom]

Thanks for dropping by Realscam with more info, wserra. I really appreciate it. I thought the folks here might like to read Tracy Ceonen's blog about this whole sordid saga (sm).

http://www.sequenceinc.com/fraudfiles/2 ... cy-coenen/

As to the result of this silly lawsuit Medifast filed they have been ordered to pay hundreds of thousands in legal fees for Coenen and Minkow. The only thing left going forward is the issue with FitzPatrick concerning his allegation that Medifast violates the California "endless chain" or pyramid statues as some of us would probably refer to them. Now, having followed Ftizpatrick for years and being an acquaintance of Dr. Jon Taylor, I can say with certainty that if Fitzpatrick believes from the data he has that this Medifast technically violates the law I am sure he is correct. That does not say that Medifast has seen any enforcement action or ever will. Enforcement in the U.S. is not good due to lack of funds and manpower in the enforcement agencies.

The question then becomes whether Medifast is wise to pursue that claim. What kind of fools want to draw attention to the fact legitimate and credible critics believe that they are in fact technically violating the law and in fact operating a pyramid scheme? I am sure that Fitzpatrick has plently of data to show their business model is very problematic and that the majority of the reps are losing their shirts. Isn't that great fodder for us internet bloggers???

The folks from Medifast might want to go to the Harvard Law site:
http://www.citmedialaw.org/ and type in my name, Heather Dobrott. It might be a valuable lesson for them!!!

Soapboxmom

[EagleOne]

Rod is a big defender of MLM programs, and we disagree on the success of the MLM business model as a viable business entity; but he does expose the crooks in the fake MLM businesses. So anyone who attacks MLM feels the wrath of Rod's opinion of them. So I was not surprised at his attack on Barry, Fitzpatrick and Taylor. He is accusing them of doing what he is now doing.

Rod and Barry are both friends of mine. It truly pained me to see what Barry did, but he is still my friend and always will be. Just as it pained me to see what Rod has written, but he is still my friend and always will be.

Just my two cents worth.