Long firm
Encyclopedia
A long firm is a trading company set up for fraud
ulent purposes; the basic operation is to run the company as an apparently legitimate business, gradually extending the amount of cash advances from customers at the same time as increasing the amount of credit
from suppliers; when the pot is large enough, the perpetrators decamp with customers' money and suppliers' goods. 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.
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
ulent purposes; the basic operation is to run the company as an apparently legitimate business, gradually extending the amount of cash advances from customers at the same time as increasing the amount of credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
from suppliers; when the pot is large enough, the perpetrators decamp with customers' money and suppliers' goods. 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.