Local News in Brief : SEC Moves Against 2 ZZZZ Best Figures

Two former officers of the ZZZZ Best carpet cleaning company were charged Tuesday by the Securities and Exchange Commission with civil insider trading violations in connection with the sale of stock in the firm.

Twin brothers Jack N. Polevoi, 41, of Woodland Hills and Jerry N. Polevoi of Simi Valley, already have pleaded guilty to criminal charges of tax fraud and conspiracy involving the bankrupt Reseda-based firm formed by Barry Minkow, who also was convicted in the case. All are awaiting sentencing in Los Angeles federal court.

Regional SEC Administrator Irving M. Einhorn said the civil complaint alleges that the Polevois, both ZZZZ Best corporate officers, made $225,000 by selling short more than 54,000 shares of the stock in 1987 while in possession of “non-public information” that the company “was in a state of disarray and chaos” and that Minkow intended to resign as president.

The civil action, filed in U.S. District Court, seeks orders permanently enjoining them from violating the Securities Exchange Act. It also asks that they be made to surrender the amount of money they gained, along with interest and penalties.

Minkow was convicted by a jury last Dec. 14 of 57 counts, including fraud and money laundering.