ZZZZ Best's new board conducted an internal investigation that largely substantiated the fraud allegations. On July 6, it sued Minkow, alleging that he had absconded with $23 million in company funds. The company claimed that its assets had been drained to the point that it was forced into Chapter 11 bankruptcy. Two days later, the Los Angeles Police Department raided ZZZZ Best's headquarters and Minkow's home, and found evidence that the company was being used to launder drug profits for organized crime.