« Cape Town Diary: Day Zero | Main | Crystal Cathedral Files for Bankruptcy »
October 18, 2010
Fraudbuster Responds to Allegations
Barry Minkow says he is no longer betting against the stock of public companies.
Barry Minkow, the former ponzi scheme operator who is now a pastor in San Diego and private fraud investigator, has responded to Christianity Today regarding the claims made about him in LA Weekly.
The paper accused Minkow of:
- Missing a court hearing while instead relaxing at a Ritz Carlton and seeking the advice of an anti-aging doctor.
- Lying to a judge;
- Lying to the public about companies whose stock he was betting against;
- Lying to the court about having trading against companies he was investigating;
There are a number of other accusations the paper makes, but these are at the heart of its complaint that Minkow’s redemption story should no longer be considered valid and that he’s scheming once again.
In Minkow’s response to CT he says a number of items in the LA Weekly story are false, others are taken out of context, and others are true but now outdated.
Missing a court hearing. Minkow missed a court meeting, and his lawyers told the judge he had been in the emergency room. Instead, Minkow was at the doctor’s office. He provided to CT a letter from the doctor and the hospital showing that he had been seen by the doctor and hospital staff. The letter states that Minkow "suffered from an apparent food poisoning episode" on the night before the court hearing in Florida, which resulted in blood in his urine. Minkow says the food was from the Ritz Carlton he had stayed at in Los Angeles. "I was stuck in LA," Minkow said in an email, "trying to catch the red eye because my lawyers wanted a full day of preparation before the hearing. I had to be dropped somewhere and checked into the Ritz at Marina Del Rey because it is blocks away from the airport." The next day, his doctor wrote, "I am prohibiting him from flying anywhere over the next 48 hours." Minkow says that while his doctor does work at an anti-aging health facility, he was formerly an emergency room doctor. CT’s attempts to confirm with the doctor have not yet been successful.
Lying to the judge. At some point, while Minkow was sick from apparent food poisoning, he says he likely told his lawyers he was going to the emergency room. Instead, he ended up seeing his doctor. He says it was a simple mix up that the judge was told he was in the ER.
Lying to the public about companies whose stock Minkow bet against. Minkow says he has yet to be proven wrong in the cases he has brought to the FBI and SEC. In some cases, including one mentioned by LA Weekly, fraud perpetrators fled the country and stopped their crime, preventing a successful conclusion. While not every case has been an unambiguous win, Minkow says his record "certainly does not lead to the conclusion that it was all irrelevant and speculative." He says his work has forced companies to change their behavior and be more open to the public.
Lying to the court about his trading activities. Minkow says he was incorrect when he told a judge that he had not bet against the stock of a public company he was attacking. He says he had simply forgotten that he made an $1,100 trade that was open for just one day. He had provided the FBI with access to his trading account. "Why would I be so stupid" to lie? Minkow asked when he could so easily be found out. "If truth were told about that," he says, "it wouldn’t have been harmful."
Still, Minkow says that six months ago, he stopped the practice of betting against the stock of public companies. While a common and legal practice, he says it was becoming a distraction. He says he’s learning the difference between vital and important. "I’m passionate about uncovering fraud and passionate about Jesus. But I got distracted. My loyalties are to the gospel and the pulpit." He said he is returning to investigating smaller investment fraud cases instead of those of public companies, which require much more time. "That’s why we stopped doing it," he says. "Even before the article came out our behavior was changed."
Members of the board of Minkow’s church, Community Bible Church of San Diego, have expressed their ongoing support for Minkow to Christianity Today.
Comments
Minkow said, Minkow said, Minkow said.....The Judge said, Investigators said, FBI said, Corporate America said, Employees said..... WHO DO YOU BELIEVE? In my opinion, NO MATTER WHAT Minkow says, he can't be trusted. He is simply a LIAR!. Birds of a feather flock together and Minkow flocks with Ex-Con Sam Antar. Sam is happens to be from another faith, his wife is suing him and has a restraining order against him. Sam happens to also be Minkow's spiritual advisor. Throw in the Atheist William Lobel who Minkow went into business with. I TRUST THE JUDGE, INVESTIGATORS, FBI, CORPORATE AMERICA AND OTHERS.... Minkow has an excuse for every thing. He is simply a liar and cannot be trusted.
Posted By: The Gov | October 20, 2010 6:13 PM
As a pastor of over 1,000 membersoi in San Diego, Barry Window has once again become captivated by the allure of this world - its riches. its power, and its prestige. As a former member of his church I had the heartwrenching experience of witnessing his recent 5-year slide into lies and deceit. If you are a true follower of Jesus Christ, please pray for Pastor Minkow.
And pray that the matchless name of our Lord is not dishonored through his actions.
Posted By: Parishioner | October 22, 2010 11:17 AM
Fraud investigation will always bring heat on you, no matter if you are ex con or just a regular person. Minkow has a solid record of helping people and exposing frauds. I dont think that one bias article from LA weekly could really change it.
The Gov: your hate is just exploding all over, I'll pray for you
Parishioner: I'm glad that you are former member of his church, it looks like making empty accusations is your common practice
Posted By: grenfan | October 23, 2010 10:34 AM
Interesting how grenfan supports Minkow and the attacks the Pastor and myself. None of Minkows responses hold any water. They are nothing but pathetic excuses. Minkow's closest friends are ATHIEST William Lobell and Ex-Felon Sam Antar. Minkow said in a deposition that Sam was his spiritual advisor, even though Sam is from a different faith. Sam is such an outstanding citizen that his own wife is suing him and she has a restraining order against him. Birds of a feather flock together and Minkow flocks with corrupt birds.
Minkow's responses are pathetic. There is still A TON of stuff he didn't answer in his responses. Minkow didn't touch the FACT that he used his Church and its employees to conduct business. Minkow said that he didn't short or buy puts on Lennar and when proof was shown that he did, he said, "he had simply forgotten that he made an $1,100 trade that was open for just one day." THERE WERE 2 TRADES and he only answered one of them.
I could go on and on and on and on.... The Pastor is right about Minkow's lies and deceit. The courts are now proving it with FACT after FACT after FACT. Minkow can't run or hide and that is why the judge even called Minkow a liar.
Facts are facts grefan and you can't handle the truth and don't want to know the truth. The Lennar verdict is going to be devasting to Minkow worshippers like grefan.
Posted By: The Gov | October 26, 2010 2:44 PM
The LA Weekly continues to expose the discrepancies between what Barry Minkow has said and what he does. See today's story on their website.
Posted By: ZZZZ Worst | November 5, 2010 1:53 PM
MINKOW FOUND GUILTY! The judge's ruling is extraordinary, in that it that denies Barry Minkow a jury trial and orders him to pay sanctions estimated at up to hundreds of millions of dollars. 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.
Minkow's misconduct has been "pervasive, intentional and committed to gain unfair advantage over plaintiffs and to deceive this court," Freeman said in the decision she signed Monday.
The judge said Minkow admitted through his counsel that he had used his church's funds to pay one of his fraud consultants. http://blogs.laweekly.com/informer/2010/12/barry_minkow_destroys_evidence.php
Posted By: The Gov | December 31, 2010 9:40 AM
birds of a feather huh? who did Jesus hang around? Who did he choose to be with? leave the judging to God.
Posted By: lisa devita | January 4, 2011 1:48 PM
According to your non-Biblical theology Lisa, we shouldn't judge Bernie Maddoff or Charles Manson either. Let's throw out the rule of law and even the 10 Commandments because we shouldn't judge.
Posted By: The Gov | January 7, 2011 10:54 AM
Click on this link to see a picture of Barry Minkow's spiritual advisor and one of his best friends. This great friend, business partner and spiritual advisor of Minkow said the following in the article, "I had no remorse whatsoever as a criminal. I had no concern about any other human being. I enjoyed being a criminal."
http://money.cnn.com/2007/12/21/news/newsmakers/antar.fortune/index.htm?postversion=2007122509
Posted By: The Gov | January 8, 2011 2:08 AM
Here's where things stand on this case. The LA Weekly reported last week that Minkow was slammed by the judge in the Lennar case:
"A Miami judge has ruled that former Los Angeles con man Barry Minkow lied, concealed material witnesses and destroyed or discarded key evidence in the libel and extortion lawsuit filed against him by home-building giant Lennar Corp. By doing so, Minkow has forfeited his right to defend himself in the case, the court said."
http://www.laweekly.com/2011-01-06/news/barry-minkow-s-new-scandal/
Then...
"The president of conman Barry Minkow's Fraud Discovery Institute (FDI) has apologized to "friends" and other followers, saying the company had "fallen away from our mission and our credibility and our sweat equity that we worked so hard to earn.""
http://blogs.laweekly.com/informer/2011/01/president_of_conman_barry_mink.php
Posted By: August Groves | January 10, 2011 11:30 AM
I think every Christian who has spoke ill of Barry Minkow needs to ask themselves why so judgemental? What ever happens to Barry Minkow it is still a FACT that he has saved many many people and that is what counts. Jesus taught us to love one another and all we can do is pray for Minkow and know that God will judge.As for being supportive of Manson and Maddoff...really? Be serious why even go as far as to have them compared to this situation. Either way I am sure if they had asked for forgiveness from God and accepted Jesus Christ they would be in heaven so there is your answer...I think we all need to remember what exactly being a Christian means.
Posted By: nieto | January 31, 2011 3:13 PM
Firstly, Barry didn't save anyone. Jesus saves; he is the only one who saves. Barry was a vessel but if you read your Bible through, it wasn't only the super righteous who we vessels.
Secondly, I would love to believe his story and ignore the growing story in the news of fraud and gross ethical violations but I can't and I don't think the Bible justifies the vehement defense of any man with a sinful nature.
Thirdly, I am a former member of his church, CBC. I was there long enough to conclude that what the news said he did; he's actually capable of doing. He's human, he has a sinful nature, he's not Jesus. The man, his wife, and his two sons need prayer.
Posted By: Jen | February 27, 2011 7:18 PM
Minkow Resigns....His Church board says, "He's Not Fit To Be A Pastor"
http://www.10news.com/news/27209959/detail.html
Posted By: thegov | March 16, 2011 9:31 AM
Barry Minkow, an ex-convict who founded a fraud-detection firm and became a minister, was charged Thursday by federal officials with conspiracy in an insider-trading case involving homebuilder Lennar Corp.
Minkow, 45, was charged with conspiracy to commit securities laws. The charge carries a maximum prison sentence of 60 months, his attorney Alvin Entin said.
"The criminal activity described in the government's filing has been a continuing assault on our company for several years," Lennar Chief Executive Stuart Miller said in a statement. "We are pleased that the government is pursuing the responsible parties."
Minkow did the same thing to the following companies AND NEVER proved a thing against ANY of them:
Medifast
Lennar
Prepaid Legal
Herbalife
NuSkin
Speedway Motor Sports
and 2 or 3 others
Minkow defines a Wolf in Sheep's clothing. The Bible warns of that and he is the perfect example! By the way, this isn't the end of the story and only the beginning. More news that shows how much of a liar Minkow is will be coming out in the future. His sins are substantially worse than most people think.
Posted By: samremram | March 24, 2011 11:12 AM