Lennar and Minkow Duke it Out
Continue Reading Add comment January 9th, 2009
Home building giant Lennar Corp. is finding itself in a war of words with Barry Minkow, the former stock swindler who now runs an entity called the Fraud Discovery Institute devoted to uncovering fraud at other companies. Minkow’s site released a 30 page report and Youtube video his morning suggesting that Lennar is a “Ponzi scheme” and a “financial crime in progress.” Minkow even operates a standalone site called “Lenn-ron”—a play on Enron– that dishes dirt on the nation’s second largest builder.
By mid-day Lennar issued its own press release and called Minkow “an agent for a disgruntled ligitant, Nicholas Marsch III,” who’s case, Lennar says, was recently dimmissed by a Califorina judge. The case dates back to a deal Lennar had with the San Diego developer Marsch in the late 90s. Marsch says he never saw any profit from the successful project. Minkow fully admits in the video he was engaged by Marsch whom he calls “our client.”
Lennar further says Marsch and Minkow may have illegally tried to obtain information about the proceedings and that the company is investigating.
Lennar stock fell 22% today.