- 6 - that investigators who had reviewed allegations about a junk bond offering by ZZZZ Best through Drexel, Burnham & Lambert (Drexel, Burnham) found nothing wrong and that the offering would proceed. Drexel, Burnham ended its relationship with ZZZZ Best because Minkow’s press conference violated rules regarding public offerings. In early June 1987, ZZZZ Best stock was one of the most actively traded NASDAQ stocks. Petitioner believed that Minkow was one of the most prominent and successful entrepreneurs in the country at that time. From June 1 to June 4, 1987, petitioner bought 50,000 shares of ZZZZ Best stock for $532,161.40. On June 4, 1987, shareholders of ZZZZ Best filed a class action suit against ZZZZ Best, Minkow, and others. In re ZZZZ Best Co. SEC Litigation, docket No. CV 87-3574 RSWL (Bx) (C.D. Cal.). Petitioner became a plaintiff in the shareholder class action suit at a time not specified in the record. In mid-June 1987, Minkow was desperate to raise capital because banks had called his loans and ZZZZ Best stock had lost value due to negative press. On June 12, 1987, Minkow telefaxed a letter to petitioner purporting to confirm ZZZZ Best’s sale to petitioner corporation of $1,189,874 in receivables for $600,000. ZZZZ Best did not sell its receivables to petitioner or petitioner corporation then or at any time.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011