Planned Bankruptcy "Bust
Outs":
This scheme is based on the perpetrator legitimately
obtaining credit and using it to purchase inventory to sell
at a profit with the intent to not repay creditors by filing
for bankruptcy. Perpetrators of this fraud often use trade
shows to target many companies simultaneously and place
multiple orders. This way they avoid prosecution under the
U.S. federal mail and wire fraud statutes, since they don't
use the mail or telephone lines to transmit the fraudulent
information.
Protect Your Business:
1. Check on a business before doing
business with them.
2. Get paid for your products or services
up front.