Shares of Lennar (NYSE: LEN) are tanking this morning on reports from Barry Minkow's Fraud Discovery Institute that the company is running a large-scale Ponzi scheme. Lennar stock is down about 20% today, most recently trading around $9.15.
The FDI has created a website, Lenn-ron.com, to detail these allegations.
The full report claims, among other things, that Lennar has been treating the majority of its joint ventures as Ponzi schemes, essentially abusing the off-balance sheet nature of these transactions to move funds around different subsidiaries without disclosure. The FDI uses several stories as examples, including one which details Lennar's backing-out of a deal with a California-based cemetery and mortuary ...
This article: 568 words
Date Published: Jan 9, 2009 12:24PM
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