ZZZZ Best Company Flashcards
0
Q
Why does the carpet cleaning industry attract fraudsters?
A
No barriers to entry (certifications, apprenticeships)
1
Q
What was ZZZZs industry?
What was ZZZZ actually?
A
Carpet cleaning business
$100 million (1987 dollars) Ponzi scheme
2
Q
How were false paper profits generated by ZZZZ Best?
A
Phony insurance restoration contracts
3
Q
After taking ZZZZ public, how did Minkow generate fake insurance contracts?
A
Minkow established Interstate Appraisal Services and Assured Property Management to generate fake reports
4
Q
Confidentiality agreement with auditors
A
They could not follow up with any contractors, insurance
companies, building owners involved after exploring (staged)
Building
5
Q
For public companies, where is resignation of the independent auditor reported?
A
On form 8-K
