Local News in Brief : Two ZZZZ Best Arrests
Two Woodland Hills men already facing federal charges in the ZZZZ Best carpet cleaning company case have been arrested on embezzlement and grand theft charges after a 13-month police investigation, authorities said Friday.
Jerry Polevoi surrendered to detectives Friday, one day after his twin brother, Jack, was arrested at his home, said Lt. Dave Smith of the Organized Crime Intelligence Division.
Both men were consultants hired by ZZZZ Best founder Barry Minkow to run the company’s commercial operations, Smith said.
Police arrested the pair for violations of state law not covered by a federal investigation into alleged money laundering and fraud at the company, Smith said. The arrests are the first in connection with the state’s investigation, he said.
Authorities allege that Minkow and his co-defendants created a massive hoax to convince banks and investors that ZZZZ Best had millions of dollars in contracts to restore damaged office buildings.
They allegedly used that scheme to inflate the firm’s value, garnering $26 million in loans and public stock offerings before ZZZZ Best went bankrupt in July, 1987.
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