Intentional illegal use of the business practices of contracts and marketing to essentially steal product, money, assets from another entity. Defrauding creditors using a deliberately designed business activity. For example, knowing that the manufacturing plant will not deliver product due to impending bankruptcy, the plant executives take a large product order with a high-percentage payment of money owed to expedite. A liquidator can bring a case to court that could require parties aware of the fraudulent activity to pay if the liquidator learns that a business has been fraudulent during the move of a company to bankruptcy. A third party usually has to admit that it benefited from fraudulent activity as it is typically hard to prove fraudulent action has occurred due to the high burden of proof. Contrast fraudulent trading with insider trading. Also refer to wrongful trading, cross firing.
What is FRAUDULENT TRADING?
Featuring Black’s Law Dictionary
Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.
- Best Way to Find Someone in Jail for Free
- What Is A Police Welfare Check?
- How Do You Look up License Plate Numbers?
- Best Way To Run A Free Arrest Warrant Check
- Signing a Letter on Someone Else’s Behalf
- Best Way to Write a Professional Letter to a Judge
- How To Find A Name & Address Using A License Plate Number
- How To Find An Inmate’s Release Date
- How to Transfer a Car Title When The Owner Is Deceased
- What Rights Do Convicted Felons Lose?