Ex-Conman-Turned-Pastor Faces Stock Manipulation Charges
Former San Diego pastor Barry Minkow, whose life story as an ex-con man who became a fraud buster was made into an unreleased movie, is returning to court in two weeks to face stock manipulation charges.
Minkow’s sentencing in a Florida courtroom was scheduled for Wednesday. However, a letter was submitted by San Diego Community Bible Church, accusing its former pastor of misusing church funds and other allegations, which caused the judge to move the case to July 21.
Minkow pleaded guilty to the stock manipulation charges in March and resigned from being a pastor at the church shortly afterwards. Authorities have not accused Minkow of any crime involving the church. Minkow and his family now reside in Tennessee.
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According to Minkow’s lawyer, Alvin Entin, the church’s letter was part of a confidential pre-sentencing probation report, stating that Minkow improperly used church funds to finance the fraud-busting business he ran on the side.
The letter also accuses Minkow of leading church members into making bad investments in the unreleased movie about his life, Entin said. Minkow’s lawyer said he received a copy of the church's letter last week, according to The Los Angeles Times.
"This letter contains material which may negatively impact sentencing," Entin said in a court filing to petition for a sentence delay.
Entin said he plans to argue that his client did not misuse church funds because Minkow always returned money he used towards his Fraud Discovery Institute, a for-profit business Minkow ran. Some of the church elders invested personal money in the institute, Etin said.
"Barry wasn't stealing anything from the church," his lawyer claimed. "He put in more than he took out. In fact, he worked without pay for the last four years."
Entin claims Minkow forewent a salary of more than $125,000 a year because the church was financially strapped and his institute was earning money.
Community Bible Church Interim Pastor Scott Lowther told The Christian Post he has not heard from Minkow since he resigned and moved to Tennessee. Lowther did not respond to questions about the church's letter.
One church member said she is holding comments on the case because she “simply does not have enough information.” Another church attender said that members simply do not want to talk about the situation surrounding their former pastor.
Pastor Emeritus Gene French said he had no comment regarding the case, but said he is "praying daily for the Lord's protection over the church."
"I am convinced CBC has a great future as it faithfully 'holds forth the Word of Life' to all who attend," French said.
Minkow was considered a teen business genius in 1980s after starting ZZZZ Best, a carpet and furniture cleaning business, in his parents’ home. His TV appearances included being a guest on the Oprah Winfrey show.
After it was found out that the vast majority of ZZZZ Best's work and capital existed only in forged documents, Minkow was convicted for swindling investors, and he spent over seven years in prison. It was there he committed his life to Christ and led a prison Bible study.
After prison, he launched his Fraud Discovery Institute. An appearance on CBS’s “60 Minutes” helped expand his fraud-busting business. He often appeared on FOX News as a fraud expert analyst.
Many of Minkow's fraud reports did result in needed changes in the companies that he had targeted. Corporate executives who committed crimes were ousted and new accounting standards aimed at preventing fraud were made.
However, several news reports show that while officially combating corporate wrongdoing, Minkow was making money through three different sources: shorting stocks, taking contributions from hedge funds and arranging monetary settlements with at least some of his targets.
In March, Minkow pleaded guilty for participation in a plot to drive down the stock price of Lennar Corp., the nation’s third-biggest home builder. Minkow said the aim was to force Lennar Corp. to bribe him with money and stocks in exchange for his retraction of accusations, according to the LA Times.
Minkow was working for Nicolas Marsch III, a La Jolla developer and a business partner of Lennar whose relations had gone south. Marsch rejected claims of wrongdoing.
A call to Minkow's lawyer was not returned.
