Long firm fraud

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For the novel by Jake Arnott, see The Long Firm.

A long firm fraud (also known as a consumer credit fraud)[1] is a fraud that uses a trading company set up for fraudulent purposes; the basic operation is to run the company as an apparently legitimate business by buying goods and paying suppliers promptly to secure a good credit record;.[2] Once they are sufficiently well-established, the perpetrators then purchase the next round of goods on credit and decamp with both the goods and profits from previous sales. The goods can then be sold elsewhere.[3] The procedure needs a certain amount of money to set up, often the proceeds from another crime or a previous long firm.

Long firm frauds have become significantly less common in recent years since it is no longer possible to operate for any length of time without leaving a significant paper trail.

Notes[edit]

  1. ^ eastscotlandfraudforum
  2. ^ “The Profession of Violence: the rise and fall of the Kray twins”- Pearson, J London, Weidenfeld and Nicolson, 1972ISBN 0297995847
  3. ^ "actionfraud". actionfraud. Retrieved 2012-02-14.