As the CEO of a $300mm company by the age of 20 in the 1980s, he committed one of the most publicized fraud cases on Wall Street by the time he was 22, convicted of 57 counts of fraud and off to federal prison for 25 years. Since then, he’s been helping fraud agencies to crack cases. So, how did he do it?
Barry Minkow is the famous con man behind ZZZZ Best Carpet Cleaning, a business he founded at 16 years old. He eventually took it public and he himself was at a time worth approximately $100MM. So what happened? He simply leveraged banks, lied to investors, cooked his books, and leveraged his auditors against themselves by asking, “You don’t want to be the one to lose the ZZZZ Best account do you?” He fabricated some 20k+ documents to fool investors, auditors, banks, etc.