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 …

A LONG-FIRM FRAUD IS DEFINED AS A BUSINESS WHICH ORDERS LARGE AMOUNTS OF GOODS ON CREDIT WITH KNOWLEDGE THAT THE BUSINESS CANNOT OR WILL NOT PAY FOR THE GOODS. UNDER THE ADVISORY COUNCIL'S REPORT, LONG-FIRM FRAUD CONVICTIONS WILL RECEIVE MAXIMUM SENTENCES WHICH ENCOMPASS 90 PERCENT OF ALL COURT SENTENCES ACTUALLY IMPOSED BETWEEN 1974 AND 1976.

Long firm fraud happens after the business has developed a good reputation and credit history. Short firm fraud, often internet-related, happens when the business has only been in operation for a few months.

Definition: Long-firm fraud is a type of fraud where a person or a group of people set up a business with the intention of gaining the trust of suppliers and customers, and then disappearing with the goods or money without paying for them.

Long firm fraud is a type of corporate fraud. It is the act of obtaining goods or money on credit by falsely posing as an established business and having no intent to pay for the goods or repay the loan. A 'Long Firm' is a trading company set up for fraudulent purposes.

The Craft of the Long-Firm Fraudster: Criminal Skills and Commercial Responses Michael LevP This chapter sets out to explain the techniques of bankruptcy fraud and the way that they both reflect and adapt to the measures of commercial (and, to a lesser extent, criminal justice) control. Some fraudsters already possess an

Interviews with fraudsters reveal how and why people become involved in long-firm fraud, how linkages develop with other professional and organized criminals, what techniques fraudsters use, and what social and commercial relationships exist within the fraudsters' world.

Business trading frauds can include long and short firm fraud as well as bankruptcy and insolvency related frauds. Long and short firm fraud is when a seemingly genuine business is set up, but has the intention of defrauding its customers and suppliers.

The following may prove to be a good working definition: a long-firm fraud is a business which obtains or attempts to obtain, on credit, substantial quantities of goods for which the effective owners either (1) know that they will be unable to pay, or (2) irrespective of whether or not they are able to pay, have no intention of paying.

The author notes the organization of long-firm fraud requires five components: finance, persons willing to participate in the crime, victims who have assets, skill levels appropriate to the complexity of the crime, and the ability to escape conviction.