Zzzz Best Carpet Cleaners

While still in high school he founded zzzz best pronounced zee best which appeared to be an immensely successful carpet cleaning and restoration company.

Zzzz best carpet cleaners.

Zzzz best started as a carpet cleaning company. Due to high competition in the industry low enter barriers and bad internal control this young entrepreneur started to have cash flow problems and a shortage of working capital. However it was actually a front to attract investments for a massive ponzi scheme. Barry minkow founded a carpet cleaning company named zzzz best in his sophomore year of high school.

Business pressures and unpaid bills caused a young entrepreneur to perpetrate one of the largest accounting frauds. The company initially struggled for survival. Minkow was charged in federal court with racketeering money laundering and fraud in connection with zzzz best a company he founded as a teenager. Zzzz best was a carpet cleaning company set up in inglewood california in 1982 by the then 16 year old barry minkow while he was still in school.

This impressed the heck out of wall street. You ll recall that minkow is the guy behind zzzz best a now long defunct carpet cleaning company that has been the poster case for accounting fraud for more than 20 years. Zzzz best appeared to be an instant success. Barry minkow who as a teen built a fortune out of his zzzz best carpet cleaning business in reseda before it collapsed as a fraud was sentenced to five years in prison for embezzling 3 million.

Minkow turned an insolvent carpet cleaning business into a public company with a paper value of more than 200 million. Back in the 1980s minkow launched the company and rapidly grew it into a concern boasting 200 million in market capitalization. The company went public in december 1986 and was quickly valued at over. Barry jay minkow born march 22 1966 is a former american businessman pastor and convicted felon.

And the auditor gave zzzz best a clean bill of health. However it was actually a front to attract investment for a massive ponzi scheme it collapsed in 1987 costing investors and lenders.