Convicted conman Barry Minkow, who after leaving prison became an FBI informant in fraud cases, is set to plead guilty in Miami to new fraud charges involving homebuilder Lennar Corp.
A hearing is scheduled Wednesday for Minkow to plead guilty to securities fraud conspiracy. Prosecutors say he released false information about Lennar on the Internet and through emails and regular mail. That caused Lennar's stock price to plummet 20 percent and forced the company to make a cash payment to another conspirator.
Minkow previously served seven years in prison for fraud involving a purported fire and water restoration company. After release he worked with the FBI through his Fraud Discovery Institute and became a pastor at a San Diego church.
The latest fraud charge carries a maximum five-year prison sentence.