A long firm fraud (also known as a ''consumer credit fraud'') is a crime 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 Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...

record. Once they are sufficiently well-established, the perpetrators purchase the next round of goods on credit, then decamp with the goods and profits from previous sales. The goods can then be sold elsewhere. The procedure needs a certain amount of money to set up, often the proceeds from another crime or a previous long firm. Sometimes an individual who does time in jail for assisting the fraud is paid for the time served. 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 An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing ...

References

Confidence tricks Fraud {{crime-stub