Fraud Discovery Institute
Encyclopedia
The Fraud Discovery Institute was founded by Barry Minkow
in 2001. Minkow had been released from prison in 1995, where he was serving a sentence for a financial scam based around a carpet-cleaning company called ZZZZ Best. Other former convict
s were also involved in the Fraud Discovery Institute; the rest of the team was composed of auditors.
The Fraud Discovery Institute claimed to be an investigative unit that sought to assist in the prosecution of perpetrators of corporate fraud. After the Institute had researched an alleged white-collar crime
, it would give a report to the FBI, which could then find and arrest the criminals.
In September of 2011, Barry Minkow
was returned to prison after making false statements in the Fraud Discovery Institute's reports.
Barry Minkow
Barry Jay Minkow is a former businessman, pastor and convicted felon. While still in high school, he founded ZZZZ Best , which appeared to be an immensely successful carpet-cleaning and restoration company. However, it was actually a front to attract investment for a massive Ponzi scheme...
in 2001. Minkow had been released from prison in 1995, where he was serving a sentence for a financial scam based around a carpet-cleaning company called ZZZZ Best. Other former convict
Convict
A convict is "a person found guilty of a crime and sentenced by a court" or "a person serving a sentence in prison", sometimes referred to in slang as simply a "con". Convicts are often called prisoners or inmates. Persons convicted and sentenced to non-custodial sentences often are not termed...
s were also involved in the Fraud Discovery Institute; the rest of the team was composed of auditors.
The Fraud Discovery Institute claimed to be an investigative unit that sought to assist in the prosecution of perpetrators of corporate fraud. After the Institute had researched an alleged white-collar crime
White-collar crime
Within the field of criminology, white-collar crime has been defined by Edwin Sutherland as "a crime committed by a person of respectability and high social status in the course of his occupation" . Sutherland was a proponent of Symbolic Interactionism, and believed that criminal behavior was...
, it would give a report to the FBI, which could then find and arrest the criminals.
In September of 2011, Barry Minkow
Barry Minkow
Barry Jay Minkow is a former businessman, pastor and convicted felon. While still in high school, he founded ZZZZ Best , which appeared to be an immensely successful carpet-cleaning and restoration company. However, it was actually a front to attract investment for a massive Ponzi scheme...
was returned to prison after making false statements in the Fraud Discovery Institute's reports.