Lennar responded by adding Minkow as a defendant in a libel-and-extortion suit against Marsch. Minkow was initially unconcerned, since he had prevailed before in similar cases on free-speech grounds. According to court records, Minkow had shorted Lennar stock, buying $20,000 worth of options in a bet that the stock would fall. Even more seriously, he also "bought" Lennar stock after his FDI report, believing the stock would rebound after its dramatic plunge. Minkow initially denied doing this, only to be forced to recant when confronted with trading records. Minkow also forged documents alleging misconduct on Lennar's part, and lied about having to go to the emergency room on the night before he was first scheduled to testify. He also went forward with the report even after a private investigator he had hired for the case could not substantiate Marsch's claims. In an unrelated development, it was also revealed that Minkow operated the FDI out of the offices of his church and even used church money to fund it—something which could have jeopardized his church's tax-exempt status.