NCJ Number
147951
Date Published
1973
Length
87 pages
Annotation
This report explains the mechanics of a specific scam operation by describing how organized crime infiltrated a business, the Murray Packing Company, late in 1960 to produce a planned bankruptcy.
Abstract
The discussion emphasizes that organized crime increasingly appears to be using planned bankruptcy as a fast way to make a large amount of money. The findings indicate the need for business to receive education about the risks of this scam. This scam began when the owners of the Murray Packing Company were short of working capital and borrowed $8,500 at an interest rate of 1 percent per week. As the debt increased, the lender demanded that the Murray salesperson who had arranged the loan be promoted. He ultimately became the company president and manipulated the company into a series of business transactions that led to a bankruptcy and prosecution for bankruptcy fraud. Footnotes, appended indictment and definitions of bankruptcy, and 25 references