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"Bustouts" or "Overbuys"

These terms describe criminal activity that aim to obtain large amounts of merchandise without paying for it. The swindler orders merchandise from a few suppliers and pays promptly. These suppliers are then used as credit references for larger and larger orders. The bogus company soon becomes a slow-payer and then a non-payer. At some point in the future, creditors are stuck for "the last payment".

This type of fraud is often well planned, highly organized and involves substantial financial backing. Unpaid-for merchandise is sold below cost to other illegitimate businesses, at "flea-markets" or peddled door-to-door.

Hit and Run

A swindler moves into a location and orders merchandise COD, paying with phony certified or cashier's checks. By the time the counterfeit check bounces, the "skip artist" has moved on to a new location to repeat the fraud.

The Hometown Repeater

By using different trade styles, keeping their operations small, and limiting their victims to "out of towners," a "respectable citizen" swindler may indefinitely avoid criminal prosecution.

Advance Fee Scams

In this type of fraud an up front payment is obtained for services to be rendered later, supposedly to "cover costs". This advance fee is accepted with no intention of providing the service. Example: The swindler, acting as a broker, is paid to secure a loan for a business. After some time, the swindler skips town or tells the victim that a suitable lender could not be found and refuses to return the fee.


Fictitious Stock Transfers

A fictitious company exchanges its worthless stock for the stock of a sound company. The swindler then creates false financial statements with inflated assets. These statements are used to get other businesses to swap stock for a piece of a bogus holding company. The assets of a legitimate company acquired in this way are then sold off or used as collateral on bank loans that are never paid.

Bank Loans and Leases

Fake trade and bank references are used to obtain loans not intended to be repaid or to arrange financing for the leasing of stolen or non-existent equipment.

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