FDI Alleges Fraud by Lennar

Online Stock Trading - Lennar Fraud Allegations

After Bernie Madoff and Satyam, we have now an alleged fraud at Lennar Corporation, accused by The FDI of operating a Ponzi scheme. This is having an effect on the share price of course, which is down 21% today.


[NB : Just on CNBC : According to Lennar all this is the product of short sellers working together with an "angry litigator" Nicolas Marsh.]

The Fraud Discovery Institute Inc. has just released the "Top 10 Red Flags for Fraud at Lennar Corporation (NYSE:LEN)", the USA's second largest housebuilder. They have released a 30-page report, a video on YuTube, and are highlighting alleged multiple fraudulent activities.

Co-founder Barry Minkow says, "You can sum up just how outrageous the fraud and abuse are at Lennar Corporation by simply listening to company President and CEO Stuart Miller who on a recent conference call said that Lennar Corporation had improved their cash reserves to $1.1 billion, up from $642 million a year before. What Mr. Miller conveniently left out was how the company obtained the $1.1 billion cash. It came from the June, 2008, NewHall/LandSource bankruptcy that has created 5,000 victims. Although Lennar Corporation ended up with hundreds of millions of cash through the debacle, the public must ask how many people, companies and communities were destroyed in the process of improving Lennar's balance sheet."

The red flags include:

- How Lennar Corporation tried to bury the Forest Lawn Mortuary.

- How Lennar Corporation treats JVs like a Ponzi scheme -.

- How Lennar COO Jon Jaffe received a $5,000,000 third trust deed loan in late 2007 that over-encumbers his home.

- How Lennar Corporation provides vague and less than transparent responses to the SEC inquiries about off-balance sheet, joint venture debt.

- How Lennar has exhibited a pattern of deceptive business practices.

lennar alleged lennar fraud ponzi scheme

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