A long firm (also known as a consumer credit fraud) is 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;. 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. 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.
Famous quotes containing the words long and/or firm:
“So long as State constitutions say that all may vote when twenty-one, save idiots, lunatics, convicts and women, you are brought down politically to the level of those others disfranchised.”
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And fix most firm thy resolution.”
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