CRIME AND DECEPTION

In 2008, a highly placed Lennar manager wrote an anonymous whistleblower letter to our company disclosing accounting irregularities and criminal activity by the top Lennar executives. The letter was remarkably similar to the letter sent to the chairman of Enron that led to the collapse of the company and the revelation of outstanding criminal activity. At the direction of CEO Stuart Miller, Lennar has spent over tens of millions of dollars of shareholder money to conceal the identity of the letter writer, deny any and all allegations in the letter, and to avoid prosecution for these and other criminal acts. Here are just a few select quotes from the letter: “As a manager, I have witnessed endless improprieties made by Stuart Miller, Jon Jaffe, and management.” “I have been involved in unwinding all of material Lennar off-balance sheet joint ventures … to avoid further inquiries from either the FBI or the SEC…” “These joint ventures were created to hide significant debt positions and to deceive the shareholders, Wall Street analysts, and credit rating agencies.” “I can guarantee Stuart Miller, Jon Jaffe and management are extremely sensitive to this matter. Guess what; I would be afraid of going to jail too.”