how auditors were misled
to launch an ipo the securities and exchange commission sec requires a firm to compile a prospectus which must include a set of audited financial statements independent certified public accountant cpa firm ernst whinney now ernst young audited zzzz best s financials to provide an opinion as to whether the financial statements were free of material misstatement assuming an independent third party provided the paperwork the cpas used false appraisal documents to perform its audit when the cpa firm requested to visit a building refurbishing customer site minkow and his associates rented a building and created a bogus customer job site 5minkow after zzzz bestin january 1988 minkow and 11 other company insiders were indicted by a grand jury on counts of racketeering money laundering securities fraud embezzlement mail fraud bank fraud and tax evasion separately minkow was also indicted on counts of credit card fraud approximately a year later minkow was found guilty on all charges was sentenced to 25 years in prison and was ordered to pay over 26 million in restitution 5after his early release in 1995 he became an ordained minister and served as a pastor of a church in california minkow informally investigated and reported other ponzi schemes from this success he formed the fraudulent fraud discovery institute 4in 2011 he was again convicted for fraud and sentenced to five years in prison it was discovered that while filming and producing his biography he simultaneously was using his anti fraud company to short stocks of companies he was investigating 6 a few years later minkow was sentenced to an additional five years in prison for defrauding his church and tax evasion his restitution balance has increased ten fold to 612 million 4zzzz best frequently asked questions