That report warned against blank-check blind pools and noted that ZZZZ Best
, in which banks and investors lost about $70 million in a massive stock fraud scheme, went public in 1986 through a merger with a Utah blank-check blind pool.
Another bizarre and widely publicized business flame-out with its share of screwy accounting was ZZZZ Best
, the carpet and furniture cleaning enterprise hatched by a wily Los Angeles teenager named Barry Minkow.
Note to editors / correction: The USANA press release of March 15, 2007 incorrectly identified the year as 1998 that Barry Minkow was convicted on 57 counts of fraud and conspiracy related to his carpet cleaning business, ZZZZ Best
In the 1980s, Minkow became one of the USA's most notorious white-collar criminals after the public company he founded, ZZZZ Best
, was exposed as being a fraud.
The inescapable logic of the accounting equation ensures that any major overstatement of assets or profits, such as in the infamous ZZZZ Best
case, will show up over time.
While most companies don't go the path of ZZZZ Best
, which criminally inflated its sales to bamboozle investors, ``managing'' financial statements is a fairly common and completely legal practice.
Indeed, the list of freakish inventory manipulations companies have committed over the last 50 years reads like a rogue's gallery: McKesson and Robbins, the Salad Oil Swindle, Equity Funding, ZZZZ Best
Brambles' presentencing report chronicles a career marked by a fast-paced rise through the ranks, highlighted by his work on the high-profile ZZZZ Best
com's Christopher Byron compares the Enron fiasco with the ZZZZ Best
affair of the 1980's, when Barry Minkow swindled thousands of investors out of their fortunes before being sent to prison.
Indeed, in a prison interview videotaped in 1992, convicted swindler Barry Minkow of the infamous ZZZZ Best
case said, "Accounts receivable are a wonderful thing for a fraudster like me.
Just recall ZZZZ Best
, the carpet cleaning company whose founder, Barry Minkow, was the quintessential young entrepreneur of the 1980s - until it was discovered that his success was built on pyramid schemes and false sales.
A former LAPD detective who was once at the forefront of such high-profile cases as the ZZZZ Best
money-laundering scam was convicted Thursday of 26 felony charges for a string of robberies and sexual assaults in 1994.