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Ex-con man and anti-fraud investigator Barry Minkow owes $584 million to Florida-based homebuilder Lennar Corporation. The judgement, reported by the Dow Jones Newswire, was handed down this week after Minkow plead guilty to extorting the homebuilder and manipulating its stock.

Minkow, a former pastor at Community Bible Church in San Diego, was hired by San Diego developer Nicholas Marsch in 2008, after the development project Bridges at Rancho Santa Fe, failed.

Shortly after, Minkow began comparing Lennar's outfit to Enron. Lennar's stock plummeted by 20 percent, which according to Lennar cost the company $584 million.

Minkow will be sentenced in early July.

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Comments

SurfPuppy619 June 17, 2011 @ 11:29 p.m.

I don't know why he pleaded guillty, the case did not sound that strong against Minkow and man, $584 million!!!!!! Yikes!

Since this is restitution from a criminal case he won't be able to discharge it in BK -like he could if this were a civil liability.

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Visduh June 18, 2011 @ 9:05 a.m.

He'll live as a pauper, unless his congregants slip him funds under the table. But then, if he really is/was a clergyman, he shouldn't have all that much in the way of earthly assets anyway. Lennar will collect nothing.

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Burwell June 18, 2011 @ 9:16 a.m.

In California the judgment only has a ten year shelf-life after which it is uncollectible. Also, Lennar can only take up to 25% of Minkow's earnings during the ten year period, which includes the time he serves in jail. So all in all, Minkow will likely never pay a dime.

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SurfPuppy619 June 18, 2011 @ 5:04 p.m.

In California the judgment only has a ten year shelf-life after which it is uncollectible.

Any civil judgement, from Small Claims all the way up to $584 million can be "renewed" at the 10 year mark, indefinintely. I would presume that renewing a $584 million liability would be automatic.

Heck I know people who have renewed small claims judgements, TWICE, 30 years worth of civil liability!

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Burwell June 18, 2011 @ 9:36 a.m.

The $584 million award stems from a civil lawsuit that Lennar filed against Minkow for defamation. The award is not part of Minkow's criminal case. So he probably can file bankruptcy.

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SurfPuppy619 June 18, 2011 @ 5:08 p.m.

The $584 million award stems from a civil lawsuit that Lennar filed against Minkow for defamation. The award is not part of Minkow's criminal case. So he probably can file bankruptcy.

================ If it is a civil liability he can file BK and discharge it.

The question is if the criminal court made restitution a condition of his sentence. I have no idea if they did, or if he could get out of paying it. But the point may be moot if Minow is "judgement proof", as we call people with no assets.

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