Injunction Prohibits ZZZZ Best Founder From Transferring Any of Firm’s Assets

A preliminary injunction was issued Monday in Los Angeles Superior Court prohibiting Barry Minkow, the 21-year-old founder and former president of ZZZZ Best carpet cleaning company, from transferring any assets he received from the company.

Judge Jerry K. Fields issued the order in response to a $25-million suit filed by ZZZZ Best’s current management accusing Minkow and others of fraud and diverting corporate funds for their personal use.

Earlier this month, Los Angeles Police Chief Daryl F. Gates announced that Minkow and ZZZZ Best were part of a narcotics and money-laundering conspiracy with ties to organized crime. Gates said a three-month investigation found that ZZZZ Best’s insurance restoration business, in which the Reseda-based company supposedly repaired carpeting, furniture and flooring damaged by fires and other accidents, was a sham.

There have been no arrests in the case.

The company’s lawsuit, filed after Minkow resigned as president, alleges that ZZZZ Best paid $18 million for labor and materials that were never provided for insurance restoration contracts.

Shortly after Minkow resigned, ZZZZ Best filed for protection under the Chapter 11 bankruptcy code.

Herb Wolas, an attorney appointed as bankruptcy trustee for ZZZZ Best, announced last week that he had brought the company’s operations to a halt. Wolas said Monday that he plans to put ZZZZ Best’s assets up for sale Friday.

Offered for sale, he said, will be the leases to 22 offices, ZZZZ Best’s customer lists and the right to use the ZZZZ Best name and equipment.