How was the Crazy Eddie fraud uncovered?
The Securities and Exchange Commission seriously began investigating financial statement fraud at Crazy Eddie when Arnold Spindler (a former employee) tipped them off about the fraud in July 1987 four months before the hostile takeover of the company by a group led by Victor H. Palmieri and Elias Zinn. The collapse of the Antar family’s control over Crazy Eddie was due to infighting, rivalries, and jealousy among Eddie Antar and his family.
