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What was Barry Minkow’s original business?

November 30, 2021
Christopher R. Teeple

FRAUD CASEBOOK
ZZZZ Best Read the following articles or other related articles regarding the ZZZZ Best case and then answer the questions below:
Sources:
Elmer-DeWitt, Philip, “ZZZZ Best May Be ZZZZ,” TIME in partnership with CNN, July 20, 1987.
Light, Larry, Oluwabunmi Shabi, and Kevin Kelly, “From Con to Convert,” Business Week, April 10, 1995.
Calabro, Lori, “Ten Questions for Barry Minkow,” CFO Magazine, January 1, 2005.
Ciulla, Joanne B., “Nothing But ZZZZ Best,” New York Times, August 8, 2008.
Short Answer Questions
1 What was Barry Minkow’s original business?
2 What business allowed Barry Minkow to grow the company?
3. After the fraud was cleared, how much income did ZZZZ Best earn?
4. When Barry Minkow was young, what crimes, if any, did he allegedly commit?
5. Who, if anyone (person or organization), was responsible for detecting this scheme?
6. Does U.S. District Judge Dickran Tevrizian believe that Barry Minkow is reformed?
Discussion Questions
1 In general, how was Barry Minkow able to execute and perpetuate his fraud for so long?
2. In your opinion, were the ZZZZ Best auditors at fault for not catching this fraud earlier? Why or why not?
3. Given that the ZZZZ Best fraud occurred in 1987, why is society still plagued by financial statement frauds?  4. Do you believe that Barry Minkow is reformed, or do you believe that once a fraudster always a fraudster? Explain your answer.

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