ZZZZ Best: Spawning a Debate on Ethics and Regulations of Audits
Topic: ZZZZ Best Company
One of the most elaborate and frauds in the United States corporate history was done by a man named Barry Minkow during the 1980s. At the age of 12 Barry got involved with the carpet cleaning business through his mother. One of the good things for a young person of Barry’s age is that this industry is fairly simple to get into. Therefore it required no prerequisite abilities or permits.
However what Barry Minkow did not expect was the high tolerance required in order to run such a business. It was a thankless job and Barry had a hard time making a profit. His company was not able to sustain capital through the operations of the business. He tried to apply loans from banks but to no avail. The banks would reject him because of the low amount of collateral he had. This caused Barry Minkow to turn to other means of capital creation fraud and dishonesty.
Barry Minkow himself was a very charismatic and socially adept person. In order to provide his business with a steady flow of capital he first turned to the basic levels of fraud such as check and credit card fraud. However it seemed like the credit card and check kiting was not sufficient enough to satisfy the needs of his “growing” business. He had come to the conclusion that insurance restoration contracts would be a good way of injecting a large amount of capital in his business. The problem was that his business was not capable enough to handle big restoration contracts thus leading to the fact that he had no customers in that regard. Therefore in order to give the impression he was getting these contracts he befriended an insurance claims adjustor named Tom Padgett. He asked Mr. Padgett that he was having a hard time getting through the beauracratic nature of the insurance business. Therefore if anyone called Mr. Padgett about ZZZZ Best and inquired about insurance restoration contracts all he had to do was say yes they had contracted ZZZZ Best to do some restoration work.
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One of the most elaborate and frauds in the United States corporate history was done by a man named Barry Minkow during the 1980s. At the age of 12 Barry got involved with the carpet cleaning business through his mother. One of the good things for a young person of Barry’s age is that this industry is fairly simple to get into. Therefore it required no prerequisite abilities or permits.
However what Barry Minkow did not expect was the high tolerance required in order to run such a business. It was a thankless job and Barry had a hard time making a profit. His company was not able to sustain capital through the operations of the business. He tried to apply loans from banks but to no avail. The banks would reject him because of the low amount of collateral he had. This caused Barry Minkow to turn to other means of capital creation fraud and dishonesty.
Barry Minkow himself was a very charismatic and socially adept person. In order to provide his business with a steady flow of capital he first turned to the basic levels of fraud such as check and credit card fraud. However it seemed like the credit card and check kiting was not sufficient enough to satisfy the needs of his “growing” business. He had come to the conclusion that insurance restoration contracts would be a good way of injecting a large amount of capital in his business. The problem was that his business was not capable enough to handle big restoration contracts thus leading to the fact that he had no customers in that regard. Therefore in order to give the impression he was getting these contracts he befriended an insurance claims adjustor named Tom Padgett. He asked Mr. Padgett that he was having a hard time getting through the beauracratic nature of the insurance business. Therefore if anyone called Mr. Padgett about ZZZZ Best and inquired about insurance restoration contracts all he had to do was say yes they had contracted ZZZZ Best to do some restoration work.
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