Lennar and Minkow Duke it Out

Posted by: Chris Palmeri on January 9, 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.

Reader Comments

michael

January 9, 2009 10:58 PM

""internet buying networks""
to accomplish this goal will need to use the same format of myspace or a related social network. the people on the network will combine their wealth to buy homes and businesses.
for example lets say a home is on sale, 200,000$... we could then divide this into individual shares, and the social networking site would buy this home for us. we would then get a monthly check based on the size of our individual share hold. the renter of the house would then be responisible for buying the shares from us, until the renter becomes the owner... once that happens the renter would have in his contract... the ability to stay out of the market
for a number of years, or they could sell the house back into our market for a profit. this works for businesses to and even more so. ...some examples would be ...corporate jets...semi trailers... franchises...etc.

http://socialbuying.ning.com/profile/michaelbaker

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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