SHELL COMPANIES for money laundering, tax evasion, hiding kickbacks, layering PART 28 -- CAPT AJIT VADAKAYIL

THIS POST IS CONTINUED FROM PART 27, BELOW--

http://ajitvadakayil.blogspot.in/2017/03/shell-companies-for-money-laundering_50.html

The new avenues for combating business fraud are:--

– Beyond Basic Business Information--   Companies collect vast amounts of data about business customers, partners, and suppliers; and today, many new sources of business information are available to enhance insight. 

These new sources include: sales and CRM entries, shipment data, labor market data, sentiment (or opinion) data, government data, merchant data, utility data, social media, and other non-traditional data. 

After discovering the data available from third party sources – as well as from across the organization internally – the next step is to curate the data to derive insights and drive systematic decisions based upon these insights. This process needs to be constantly evaluated and improved, thereby making it virtuous and beneficial at reducing business fraud.

– Anticipatory Analytics. With the help of powerful and factual analytics programs, companies can analyze their combined or united data-sets to gain insight into their business customers and partners. 

Buried within the mounds of data are “red flag” patterns or indicators of potential fraud. Anticipatory analytics sift through the noise to uncover fraud signals—that is the likelihood that fraud may occur

—to help companies identify risks and target appropriate actions to minimize those risks. Analytics can provide a warning of potential payment delinquency, never paying and first payment default, or ceasing operations by customers.

Companies recognize that they are increasingly vulnerable to this costly fraud threat, but they are uncertain how to implement cost-effective controls that can reduce fraud risk without slowing sales or driving away legitimate customers.

Scam, hoax, misrepresentation, deception, cheat, sting, swindle, con. These are all terms that apply to fraud. The perpetrators of business fraud typically obtain cash and/or goods through normal business transactions but with one important twist: They never intend to pay. Essentially, business fraud is stealing carried out through carefully planned misrepresentation and deception.

In a bust-out fraud scenario, the perpetrators create a seemingly legitimate company by using traditional “proofs of right.” 

Once established, the fake company applies for credit from multiple vendors, enticing them with the expectation of a mutually profitable business relationship.

The fraudsters then draw upon the maximum amount of credit approved by each vendor.

In a “straight-roller” bust-out fraud, the perpetrators make no attempt to pay. As their invoices go past due for 30 days, 60 days, 90 days, and so on, they may offer promises of payment or excuses while they complete their scam, but they never pay. 

In more complex bust-out frauds, the perpetrators may pay some or all of the initial invoices in order to negotiate for an even higher credit limit. They will then “max out” their new, more lucrative credit ceiling and then disappear without paying.

The enemy in any conflict has an equal say in the methods and approach they deploy. Criminals are constantly adapting their tactics, seeking new ways to mask their activities, so they can strike and then disappear before their victims catch on to their scams. Government and business must be equally adaptive.

– Anticipatory Analytics Not Only Predicts, But Prevents Fraud. Identifying and preventing fraud requires the ability to distill and then transform into insight the subtle signals from multitudes of data.

Companies can take advantage of new technologies and services that cast a light on fraudsters hiding in the shadows.

During annual fraud forums, members exchange lessons learned and identify emerging trends and best practices among corporations and government agencies. They also identify available tools and techniques that reduce the risk of business fraud without placing a burden on legitimate businesses at the point of sale.

There is no silver bullet for eliminating bust-outs and other types of business fraud, but  companies can stay ahead of fraudsters’ changing tactics and schemes with a multi-layered approach that leverages new sources of information, anticipatory analytics, emerging technologies, robust employee training, and collaboration with other public- and private-sector stakeholders. 

The term "shell company" generally refers to limited liability companies, the vulnerability of the shell company is greatly compounded when it is privately held and beneficial ownership can more easily be obscured or hidden. 

Lack of transparency of beneficial ownership can be a desirable characteristic for some legitimate uses of shell companies, but it is also a serious vulnerability that can make some shell companies ideal vehicles for money laundering and other illicit financial activity

Anti-corruption/fraud/AML/sanctions compliance program risk assessment.--- Used to assess an organization’s program—including policies, procedures, training, internal controls and monitoring—an assessment can help determine the level of potential risk exposure facing the business.

An effective assessment is based on regulatory guidance, as well as leading industry practices and includes quantitative and qualitative risk models covering areas such as anti-corruption, anti-fraud, AML and sanctions. 

These models can be integrated across the broader compliance function to provide a holistic view of potential risks inherent in operations.

Customer/vendor due diligence. ---Automated programs can be designed to efficiently identify shareholders of a potential customer/vendor—including those linked through a chain of intermediary companies or directorship—by using global corporate registries and other sources of information.

Should automated screening identify certain customers or vendors, more traditional business investigative services can be used to help further verify the ultimate corporate structure/beneficial ownership, as well as the potential reputational risks of a relationship. Investigative services can include searches of global corporate records databases, which draw information from a number of key local government agencies.

Transaction monitoring and data analytics. ----Systems implemented by institutions are only as good as the analytics that support them, which is why organizations should consider combining human interaction with analytics technology and techniques. This combination can help detect potentially improper transactions—either before the transactions are completed or after they occur.

This process involves gathering and storing relevant data and mining it for patterns, discrepancies and anomalies, such as payments to offshore jurisdictions, potentially restricted entities or other high-risk entities. 

Further, non-rules-based analyses can uncover new patterns, trends, fraudulent schemes and scenarios that traditional approaches may miss. Findings from the analyses can be translated into insights to help manage potential threats before they occur, as well as develop a proactive detection environment.

Internal reviews and investigations. ----If the analysis render findings that should be investigated, organizations should consider conducting retrospective reviews and investigations to help answer the who, what, when, where, how and why questions that give rise to an inquiry—whether self-initiated or as a result of a regulatory, judicial or law enforcement request.

From an AML/sanctions perspective, lookback analyses can include identifying relevant transactions that exhibit potentially suspicious activity, which additionally may help modify and improve ongoing transaction monitoring and management reporting practices.

13 percent of property-casualty insurance industry losses each year are attributable to fraud, to the tune of $40 billion.

The Coalition Against Insurance Fraud is a coalition of insurance organizations, consumers, government agencies  and legislative bodies working to enact anti-fraud legislation, educate the public, and provide anti-fraud advice.  

They are also a resource where consumers can find scam warnings, learn where to report fraud, and how to protect themselves.

SOME OF THE THINGS  I WRITE ARE USA SPECIFIC.     

THIS  IS TO GREASE THE BRAIN OF INDIAN FRAUD INSPECTORS ,  THEY NEED TO UNDERSTAND PHOREN JUGAAD TOO.  

ALL THESE THINGS ARE GOING ON IN AN INDIAN CONTEXT TOO.

The Coalition was founded in 1993 after several organizations reported a heavy rise in insurance fraud and a need to stop it.

In 1993, insurance fraud investigators staged several bus crashes in New Jersey USA . The only passengers in the busses were fraud investigators. After the crash, they received over 100 claims from people who jumped on the bus after it crashed or simply drove by the scene and wanted to claim insurance money saying they were injured.

In response to this problem, seventeen organizations formed The Coalition Against Insurance Fraud, contributing $500,000 to finance anti-fraud efforts. At the time, The Coalition estimated that auto fraud cost over $8 billion a year in overpaid claims.

Since then, The Coalition has grown to include over 90 members, including GEICO, National Consumers League, First Acceptance Corp., Healthcare Insight, Property Casualty Insurers Assoc. of America, SAS Institute, Thomson Reuters, Nationwide, and the Virginia State Police.

The Coalition's main mission is to fight insurance fraud. The Coalition seeks to unite and empower private and public groups against the growing fraud problem. Members work to control insurance costs, protect public safety, and "bring this crime wave to its knees.

Three main areas of activity are:----

Government Affairs

To enact stronger anti-fraud laws through local and grassroots campaigns

Create model bills. For example, establishing insurance fraud as a specific crime.

Strengthen anti-fraud bills

Hold major summits

Support prosecutions

Communication

Raise public awareness of insurance fraud, and how public can fight back

Empower and alert consumers

Unite outreach efforts

Sponsor major research and surveys

Publications

Journal of Insurance Fraud in America (JIFA), a quarterly publication containing in-depth analysis of trends, research, and public policy issues that may impact anti-fraud effort

FraudWire, two quarterly digital publications reporting on important developments involving legislative activity and public awareness

Fraud News Weekly, a paid digital publication summarizing weekly trends on legislative and regulatory developments, state and federal court decisions, public outreach and media coverage, the week's fraud arrests, the latest convictions for insurance fraud, civil cases, administrative actions, upcoming meetings, seminars & conferences.

Get a Grip on Fraud: Fraud Awareness Manual, an action guide for creating memorable fraud-awareness event 

The Coalition has published several research studies over the past decade.

Among them:---

Effectiveness of warnings on benefit checks, in 2000, selected insurance companies writing workers compensation coverage in the United States were surveyed to determine their experience and perceptions with printed warnings on the back of benefit checks.

Four faces: why Americans do and don't tolerate fraud, to understand why people accept fraud, and why individuals sometimes won't report fraud even though they understand fraud raises everyone's premiums.

Study includes focus groups and statistical survey. conducted to gain insight on why public tolerance of insurance fraud seems to be increasing. Both qualitative and quantitive research was used to attempt to understand how public attitudes about fraud are formed and what factors influence them.

Insurer fraud measurement, a survey completed by 65 Special Investigative Unit managers, mostly from property/casualty insurers, on their practices involving measuring anti-fraud activities for case referrals, fraud savings and performance evaluations of investigators.

Prescription for Peril, examining unreported and elusive aspects of drug diversion, the role insurance fraud pays in financing prescription abuse, and the high cost to insurers and consumers.

Special Investigative Unit study, conducted to learn how insurers measure the performance of their Special Investigative Units. A review of the measurement systems of 52 insurers found there is little consistency from insurer to insurer in the methods they use in their performance systems.

State Insurance Fraud Bureau Survey, a snapshot of state agencies’ fraud fight by the numbers, aimed at understanding the structure, responsibility, and overall activity of insurance fraud across the United States

The Coalition issues scam alerts for common schemes, elaborating on variations and best measures for prevention and defense. 

Among the topics:----

Agents and insurers: Though most insurers and agents are honest, the Coalition warns against agents who pocket their clients' premiums, sell insurance that is fake or unnecessary, or provide unneeded coverage to boost premiums.

Auto repairs: Auto repair scams have been known to involve purposely damaging cars in order to inflate repair costs, padding existing repairs, or cutting corners by doing low-quality work.

Bogus health plans: A tough economy can make individuals more vulnerable to buying too-good-to-be-true insurance plans

Contractors & adjusters: The Coalition warns against fraudulent contractors who appear after natural disasters to offer repairs, fraudulent contractors may add damage to increase costs, illegally lower deductibles, receive pay and disappear, or do work without a license.

Discount medical cards: these cards offer discounted medical treatment or pills, but fake cards may provide no coverage or discounts

Drug diversion. The abuse of prescription drugs.

Medical identity theft: Medical identity schemes involve stealing someone's social security number, medicare number, medicaid number, and other identifying information in order to file insurance claims on their behalf for illegal gain.

Staged auto crashes: The Coalition warns against people who claim nonexistent injuries after crashes in order to exploit their insurance coverage, fraudsters may purposely crash into unsuspecting drivers, or stage a crash that is entirely set-up in person or on paper.

Workers' compensation: The Coalition warns against employers who do not purchase adequate coverage for their employees, and employees who fake injuries for paid time off.

An investigation led by the Department of Financial Services’ Division of Insurance Fraud revealed a large-scale premium fraud scheme in which these six individuals created multiple shell corporations in order to systematically conceal payroll amounts for the purposes of obtaining low-cost workers’ compensation policies. by grossly deflating accurate payroll amounts, members of this fraud network fraudulently secured low cost workers’ compensation insurance policies.

Payroll amounts were concealed through the use of check cashing stores, which circumvented proper bookkeeping measures.

After securing certificates of insurance, organizers would ‘rent’ the certificates to work crews for a fee. Since the policies were obtained fraudulently, employees were not covered and therefore left vulnerable to high-dollar medical costs in the event of an on-the-job injury.

To further their scheme, organizers would print and provide fake business cards to these work crews, who were instructed to present them to workers’ compensation compliance investigators who routinely conduct compliance checks at job sites to ensure proper coverage is in place.

This cycle of fraud would continue until an insurance policy expired or was cancelled, at which time organizers would open another shell company under a different name and begin the process again.

Shell companies are owned by straw owners, or individuals who, for a fee, agree to serve as the legal owner of a business because they have a clean criminal record. These businesses, however, were alternatively run by organizers who directed the day-to-day activities and operations of the illegal activities.

Fraud audits are a blend of new methodologies and traditional audit tools. Within a company's accounts payable file, shell companies are being used to steal millions of dollars from companies or to conceal bribery payments which violate anti-bribery and corruption laws. A shell corporation is a legally created entity that has no active business or an entity used to conceal the true identity of the real company operating through a shell company.

In essence, a shell corporation exists mainly on paper, has no physical presence, employs no one, and produces nothing. Within more sophisticated concealment strategies the perpetrators may employ the use of an office or employees to provide the illusion of a legitimate business entity.

Shell corporations are frequently used to shield identities or to hide money in cases of money laundering, bankruptcy, bribery, and fraudulent conveyances. Scandals range from thousands to millions of dollars and always result in embarrassing moments for the company and management.

Fraud concealment involves the strategies used by the perpetrator of the fraud scenario to conceal the true intent of the transaction. Common concealment strategies are: false documents, false representations, false approvals, avoiding or circumventing control levels, internal control inhibitors, blocking the access to information, geographic distance between documents and controls, and both real and perceived pressure.

An important aspect of fraud concealment pertains to the level of sophistication used by the perpetrator. Inherent fraud schemes aren't thought of in terms of complexity; rather it is the level of sophistication used to conceal the fraud scenario that is the focus for the fraud auditor.

 On its most simplistic level, without a concealment strategy, the inherent fraud scheme would be visible. Fraud concealment sophistication should be rated on both the perpetrator's ability to hide the transaction and the auditor's ability to detect the transaction. To aid in the determination of the sophistication of the concealment strategy level, we use a rating scale of low, medium, and high.

There is a correlation between fraud detection and the sophistication of the concealment strategy. When the perpetrator's concealment strategy is more sophisticated than the audit methodology, the fraud goes undetected. Therefore, fraud is revealed when the audit detection is more sophisticated than the concealment strategy. The key is to identify what are commonly referred to as red flags of the concealment strategy.

There are four categories of red flags: data, documents, internal controls, and behavior. The categories are intended to aid the auditor in identifying the red flags in an orderly fashion, whereby, the auditor should not view the process as a right or wrong exercise, but instead know that certain items can occur in multiple categories.

The process of detecting shell corporations is a two-step process. The first step is to conduct fraud data analytics interrogation routines, which are designed to locate vendors that are consistent with the data profile of a shell corporation or transactions that are indicative of a shell corporation. The second step is to perform audit procedures which are designed to pierce the concealment strategy or reveal the truth.

The data mining strategy is a two-fold process. The first step is to build the data profile for the fraud scenario. The second step is to understand how the sophistication of the concealment strategy impacts the fraud data analytics.

Shell companies often times have non descriptive names. One search is to look for names with a limited number of constants in the name. Obviously, the country or language the search is performed in will impact the variable. Shell corporations often use mobile lines when no physical office exists. Also searching for pass-through fraud schemes, duplicate telephone number search is an effective tool, when the pass-through is associated with an existing supplier.

Search for a correlation between first invoice date and the creation date. Payments are transferred either by wire or address. The routing number can be used to correlate to prospective individuals. The theory is simple; the perpetrator is smart enough not to use their personal bank account but would use the same bank for their shell corporation bank account.

Insurance companies have always relied on technology to fight fraud. The III reports that 95 percent of insurers say they use antifraud technology, but about half say a lack of information technology resources prevents them from fully implementing it. The invoice number pattern is one the most critical data fields for our fraud data analytics.

The reason is simple, the perpetrator creates the number. The pattern and frequency analysis is critical for the search for false billing schemes. The low-sophistication scheme will most likely have a sequential pattern of invoice numbers. For the pass-through scheme, the invoice number pattern will depend on whether the pass-through entity has one or a few customers. 

Compare to date of payment to the invoice date using a speed of payment analysis.   Look for vendors where all amounts are below a threshold requiring two approvals. Google Maps: Online maps can determine what physical structure is located at the known address and whether the address is consistent with the entity structure.

Often, the created entity scheme will use the address of a personal residence. Remember that many small businesses operate from the owner's personal residence, so, in this case, reference checking may be preferred in order to reveal that the entity does not conduct business. Real companies tend to have insurance.

The fraud testing procedure would consist of a request of the certificate of insurance. Fortunately, such a request is a normal control procedure in many companies, but for fraud audit purposes, the need is to examine the certificate to take note the date of coverage and types of coverage. Shipping documents: Documents such as, a billing of lading indicates the source of the shipment, therefore providing verification.

Today 60% of insurance companies are using predictive analytics to address fraud potential.

A bleed-out is most often an inside job, where corporate managers, directors, or officers emaciate a company's value through insider asset transfers.  The company is not necessarily established for the purpose of carrying out a bleed-out, and may not even be in financial distress. 

However, like any company, its vulnerability is exposed when collusive insiders have control and subordinate the company's success to their personal gain.

Commonly, an insider, or group of insiders, enter into transactions on behalf of the company with the purpose of redirecting a business asset in favor of the insider and to the prejudice of the company. 

For example, money could be thrown at a fledgling subsidiary that happens to be controlled by an officer who also serves as an officer for the company being depleted. 

Often these transactions are document-intensive, well-planned, and hidden to reduce the risk of exposure.  In other words, simply looking at the statements and schedules will not typically reveal a bleed-out scheme.

WHY IS “BABE IN THE WOODS”  PM MODI UNABLE TO EXTRADITE  LALIT MODI AND VIJAYA MALLYA FROM BRITAIN ?

WE KNOW WHY!

WHEN THEY COME BACK A “CAN OF WORMS” WILL BE OPENED OUT

THIS WONT SUIT A FEW BIG FISH BJP POLITICIANS AND THEIR FOREIGN ALLIES !

Kapil AgarwalMarch 27, 2017 at 9:50 AM

Another feather in the cap for Modiji!!
After, Gandhi enemaji,Basava, charvaka,Ambedkar et.al.

NOW THIS

http://www.narendramodi.in/pm-addresses-the-80th-anniversary-celebrations-of-the-brahma-kumaris-family-via-video-conferencing-534856

1. 
   Capt. Ajit VadakayilMarch 27, 2017 at 10:25 AM

   THIS FELLOW MODI HAS BEEN ATTACKING SANATANA DHARMA FROM BEHIND NOEW FOR SEVERAL YEARS ... NOBODY CAN BE THIS IGNORANT
   
   ##############
   
   Capt. Ajit Vadakayil   December 27, 2014 at 9:30 AM
   hi g,
   
   why is TRIPLE SRI such a darling of R media ?
   
   and who the hell are all these R media darlings to speak on behalf of Hinduism , without understanding even a IOTA of this great religion and our ancient Indian culture ?
   
   why is baba ramdev such an enemy of R media ?
   
   the R media has driven a gender divide wedge -- now supreme court has allowed WOMEN as pujaris -- starting with Vithoba temple at Rothschild's town Pandarpur--
   
   the moment TRIPLE SRI started messing around with this temple, with his Guinness book of world record drummers flashed by the entire R media -- i knew this was coming !
   
   watch what the R media darlings brahma kumaris do next !!
   
   if you want to see the R stooge founder of this white saree cult--
   
   punch into google search-
   
   DADA LEKHRAJ WIKIPEDIA
   
   3 YEARS AFTER OM MANDI WAS FOUNDED BY FILTHY RICH DIAMOND MERCHANT LEKHRAJ - THE PLACE WAS RAIDED BY POLICE AT NIGHT ON REPORTS OF AN ONGOING SEXUAL ORGY WITH MINORS ( WHICH INCLUDED WHITE RULERS ) !
   
   the next day it was banned by the Govt of Singh-- an this incident was splashed by newspapers .
   
   this was in British India.
   
   I quote the British newspaper--
   
   ###########
   Daily Mail, 13 March 1939 wrote:
   
   Five thousand angry husbands, parents, and guardians yesterday marched on the Sind Government secretariat in protest against the activities of the Om Mandli celibacy cult here.
   
   The cult has aroused fierce indignation by inducing young girls to refuse to marry and wives to leave their husbands.
   
   A clash seemed inevitable as the march had been banned by the Government.
   
   The crowd, led by the crippled Hindu leader Vaswani in a wheel chair, came face to face with a cordon of police.
   
   Then the Minster of Public Works, Mr Vazirani, intervened. He gave a written guarantee that the Government would order the cult to discontinue certain practises. The crowd dispersed.
   
   ##########################
   
   http://www.brahmakumaris.info/forum/viewtopic.php?f=19&t=2417
   
   check out this link to see a SCAN of the above report . this is NOT bull.
   
   Lekhraj Khubchand Kripalani was touted by the white invader as an avatar of Shiva .
   
   Our R media and waitress sponsored President Pratibha Patil had famously said in 2007 -- she had received a message from Lekhraj Khubchand Kripalani stating that a “great responsibility” was headed her way.
   
   DID AN ANGEL DELIVER THIS MESSAGE ?
   
   2 DAYS AGO NARENDRA MODI TOOK IN AROON POORIE, THE BOSS OF HEADLINES TODAY TV ( INDIA TODAY GROUP ) FOR HIS SWACHCH BHARAT CAMPAIGN .
   
   Headlines Today had given early morning space to Brahma Kumaris for their propaganda .
   
   this is the sorry state of India !!
   
   screwed from top, bottom and both sides !!!
   
   capt ajit vadakayil
   ..

   
   
2. 
   Capt. Ajit VadakayilMarch 27, 2017 at 10:39 AM

   LET ME QUOTE WIKI-
   
   QUOTE --In 2008, the movement claimed to have more than 825,000 regular students, with over 8,500 centers in 100 countries...The Brahma Kumaris at the United Nations is an international non-governmental organisation (NGO) in general consultative status with the Economic and Social Council of the United Nations.[65] and UNICEF. UNQUOTE
   
   WHO CAN OPEN 100 CENTRES WORLDWIDE FOR YOU ? 
   
   Same way Sri Sri Ravishankar who wrote that Vedas contain " nothing against homosexuality " is working in special consultative status with the United Nations Economic and Social Council (ECOSOC) of the United Nations.
   
   In 2010, Art of Living sued two bloggers, "Skywalker" and "Klim", accusing them of defamation, trade libel, copyright infringement and disclosing trade secrets.
   
   WHAT IS HIS DEADLY SECRET ?
   
   WHY DOES A GURU NEED TO SUE IN COURT ?
   
   why did Modi give sri sri Ravishankar a PADMA VIBHUSHAN ?
   
   His book Ashtavakra Gita is all bullshit !
   
   As soon as I wrote on Yazidis he went running there to grab credit. I was the first person on the planet to reveal that Yazidis are Hindus and their Mecca is Palani temple in ancient Cherala Empire -- today in Tamil Nadu ( made by Calicut King Cheraman Perumal )
   
   http://ajitvadakayil.blogspot.in/2014/08/the-yazidis-of-iraq-ethnic-cleansing-by.html
   
   CAN THIS FELLOW SRI SRI RAVISHANKAR EVEN UNDERSTAND WHAT I WROTE BELOW ?
   
   http://ajitvadakayil.blogspot.in/2016/09/hyperventilation-followed-by-valsalva.html
   
   http://ajitvadakayil.blogspot.in/2016/12/extracorporeal-membrane-oxygenation.html
   
   MIND YOU--I HAVE KEPT THE TWO POSTS ABOVE AT LAYMANs LEVEL
   
   and what is SADGURU JAGGI VASUDEV doing in UN and International FREEMASON seminars ?
   
   SANATANA DHARMA NEITHER SUPPORTS BRAHMACHARIS OR BRAHMA KUMARIS .
   
   capt ajit vadakayil
   ..

Nearly 85 % of all bankruptcy fraud of BIG FISH ( not startups )  involves the concealment of assets.   

Creditors can only liquidate those assets listed by the debtor; thus, if the debtor fails to reveal certain assets, the debtor can keep the assets despite having an outstanding debt.  

To further conceal the assets, businesses or individuals may transfer these unrevealed assets to friends, relatives, or an associate so that the asset cannot be located.  

This type of fraud raises the risk and costs associated with lending and becomes passed on to others who wish to borrow money.

Petition mills are one type of bankruptcy fraud scheme on the rise in the United States. Petition mills purport to keep financially-strapped tenants from becoming evicted by passing themselves off as a consulting service. 

While the tenant believes to be receiving help in avoiding eviction, the petition mill actually files the tenant for bankruptcy and drags out the case. Meanwhile, the “service” charges exorbitant fees, empties the tenant’s savings account, and ruins the tenant’s credit score.

Multiple filing fraud consists of filing for bankruptcy in multiple states, using the same name and information, using aliases and fake information, or some combination thereof. Multiple filings slow down the court systems’ ability to process a bankruptcy filing and liquidate the assets. Often, multiple filings provide more cover for a debtor trying to engage in the concealment of assets.

When people or organizations have more debts than they can manage, they sometimes file for bankruptcy in a federal bankruptcy court. When you file for bankruptcy, your creditors can no longer on their own try to sue you or collect your property to satisfy unpaid debts.

 Instead, your creditors must go to the bankruptcy court in which you've filed your bankruptcy petition, where the judge will determine how much property you have, how much you owe, and who gets repaid. The process is designed to allow debtors a new start by getting out from under crushing debts.  

When BIG FISH do this, it is invariably a FRAUD.

Limited liability companies first became widely available in the U.S. in the early 1990s. The German version (GmbH, or Gesellschaft mit beschränkter Haftung) has been in existence since the late 1800s thanks to JEW R.

LLC is a hybrid form of business entity that can protect the owners effectively in the case of legal action. Like a corporation the LLC structure removes the members and managers from liability, and, like a partnership, it provides certain tax benefits.

It is considered a “pass-through” arrangement because the individuals are taxed rather than the company (unless the company elects to be taxed as a corporation.).    An LLC is easier to set up than a corporation and LLCs are subject to relatively few procedural requirements relating to the governance of the business entity.

An LLC makes an attractive vehicle for a shell company. Some LLCs can be owned or managed anonymously, and are therefore inherently vulnerable to abuse. Virtually anyone can own or manage an LLC, including foreign persons and other business entities. 

A member of an LLC is equivalent to a shareholder in a corporation. A manager, on the other hand, is equivalent to an executive officer or a member of the board of directors. An LLC may lack managers, in which case the members would manage the LLC. Some states in USA do not require the names or addresses of members or managers. In some cases, only the names of managers and not members (owners) are reported.

 A foreign LLC must file with the state in order to “do business” in that state. It is important to understand that companies owned by out-of-state or foreign persons or entities are formed as domestic LLCs unless they were originally formed in another jurisdiction.

Therefore, newly created shell companies owned by such persons or entities will often fall into the domestic classification.

There are additional ways to further obscure ownership and activity. For example, because an LLC can be owned or managed by one or more other business entities – a corporation, a limited partnership, a general partnership, a trust, or even another LLC – layers of ownership can be devised which make it highly unlikely that relations between various individuals and companies can be discerned, even if one or more of the beneficial owners are actually known or discovered.  

 In Delaware and other states, an LLC serving as a member or manager for another LLC is not considered to be “doing business” in the state solely by reason of being a member or manager of the other LLC. The address "1209 North Orange Street" in Wilmington, Del., has become known in recent years as the epicenter of U.S. corporate secrecy. 

The squat, split-level building is the official address of over 285,000 companies, many of which are looking to take advantage of Delaware’s Panama-like secrecy rules, tax incentives, and business-friendly case law. 

Hillary and Bill Clinton quietly set up two shell companies listed at "1209 North Orange Street" in 2008 and 2013.. one of the Clintons’ "1209 North Orange Street" companies is WJC, LLC, which was set up by Bill Clinton in 2008 as a pass-through for his consulting fees.

Another company at the same location, ZFS Holdings, LLC, was set up in February 2013, one week after Hillary Clinton left the State Department. Hillary Clinton received $5.5 million from her book publisher, Simon & Schuster, through the company.

The "1209 North Orange Street" building is the headquarters for the Corporation Trust Company. The firm acts as a registered agent for thousands of corporations that are not actually located in Delaware, including the Clintons’ companies.

Anti-secrecy advocates say the building is prime evidence that Delaware has become a corporate haven that’s comparable to more well-known, offshore locales.

If you imagined a building with 1,000 corporations in it, you’d imagine a building like the Empire State building--but 285,000 companies claim [1209 North Orange Street] is their address.

An LLC serving as member or manager of another LLC could organize in a state offering the least transparency and conduct activities in a number of other states without reporting the identities of members or managers.

An additional benefit that applies equally to LLCs (or corporations) formed in any state is the air of legitimacy afforded foreign owners in operating a U.S.-based company. Further legitimacy may possibly be obtained by organizing in a state without an international reputation for privacy of ownership.

Capt. Ajit VadakayilMarch 27, 2017 at 2:33 PM

THIS BLOGSITE WILL NOT ALLOW PRIVATE AIRLINES TO CREATE A NO FLY LIST

VERY SOON JEW ROTHSCHILD WILL DECIDE WHO CAN FLY IN INDIA.

I HAVE SEEN SNOOTY AIRLINES AIRHOSTESSES LITERALLY TREAT PASSENGERS LIKE SHIT

ILLITERATE LABOUR FROM KERALA WORK LIKE SLAVES IN SAUDI ARABIA AND THEN COME BACK HOME AFTER 3 YEARS.

THESE SIMPLE FOLKS ( MOSTLY MUSLIM ) ARE JUST EAGER TO GO HOME AND THEY DO NOT KNOW CHUTNEY MARY / PICKLE JOHN FAALTHU , CROOKED PINKY FINGER EMILY POST MANNERS

ONCE I WAS WAITING IN MUMBAI AIRPORT ( DOMESTIC ).

I HAD REACHED MUMBAI AFTER 4 FLIGHTS ( 20 HRS FLYING FROM CHILE ) AND WAS AWAITING A PRIVATE AIRLINE TO TAKE OFF FROM MUMBAI TO CALICUT

ALL PLANES TO OTHER PLACES WERE TAKING OFF WITH NO HITCH

ONLY CALICUT PLANE WAS DELAYED-- THREE TIME IN A ROW-- WHEN OTHER FLIGHTS DEVELOP A SNAG--  THE CALICUT PLANE IS GIVEN AWAY .

I SHOUTED AT THE JET STAFF -- "I WILL GET ALL  YOU BASTARDS SACKED "

LOOKING AT MY WATCH, MY DRUG MAFIA BOOTS , MY BRIEFCASE, MY GOGGLES --THEY KNOW I AM NOT CHEAP LABOUR.    THE DELAYED PLANE WAS PREPONED 

NOW -- AM I A TROUBLE MAKER ?

CAN I BE BANNED IN A NO FLY LIST  FOR DEMANDING FAIRNESS ? 

ALL DEPENDS !

capt ajit vadakayil
..

Capt. Ajit VadakayilMarch 27, 2017 at 2:40 PM

30] In 2005, Sibal married Promila Sibal who is owner of biggest cow abbatour in India and biggest cow beef exporter by name of Promila exports in Gaziabad.[31][32][33]

AS PER WIKIPEDIA KAPIL SIBALs WIFE IS THE NO 1 BEEF EXPORTER IN INDIA .

WHY ?

WE KNOW WHERE HIS BEEF GOES TO !

http://ajitvadakayil.blogspot.in/2013/12/shocking-legacy-of-mad-cow-disease-capt.html

WE DONT WANT KAPIL SIBAL TO SAVE BHARATMATA 

1. 
   Capt. Ajit VadakayilMarch 27, 2017 at 3:00 PM

   NDTV IS SHOWING SABIL SIBAL GIVING A SPEECH ON RAJYA SABHA--FULL OF GUSTO--BUT ZERO SUBSTANCE
   
   I WONDER HOW THIS REFUGEE FROM PAKISTAN MADE SO MUCH MONEY
   
   KAPIL SIBAL DOES NOT KNOW THAT HIS SPEECH IS NULL AND VOID
   
   UNELECTED RAJYA SABHA DOES NOT HAVE POWERS OVER FINANCE --LIKE ELECTED LOK SABHA
   
   Arun Jaitley’s Finance Bill, 2017 has been passed in Lok Sabha 4 days ago.
   
   This money bill will NOT be sent to Rajya Sabha for discussion-- but only for recommendation ( which can be rejected by Lok Sabha ) , and then will be sent to the President of India for his ascent.
   
   WHY IS KAPIL SIBAL WASTING HIS BREATH ?
   
   A bulk bill of 40 amendments to different laws, Finance Bill, 2017 has a string of legislations that will impact a variety of existing taxation (and other) laws involving funding of political parties, use of Aadhaar, income tax returns and raids, caps in cash transaction, and a host of other issues.
   
   In addition to being linked to a number of public services and subsidies, as per Finance Bill, 2017, Aadhaar will now be compulsory from July 1, 2017 to file one’s income tax returns and to obtain and retain PAN, or permanent account number.
   
   KAPIL SIBAL IS JUMPING UP AND DOWN LIKE AN ORANGUTAN OVER THIS--HOO HOOO BOOO-- MODI REJECTED AADHAR, AND NOW HE IS KISSING AADHAR
   
   SO WHAT?
   
   CAPT AJIT VADAKAYIL ALSO REJECTED AADHAR
   
   NOW I SUPPORT I POST DEMONETIZATION. I HAVE GOT A AADHAR CARD FOR MYSELF . IT DOES NOT HAVE A TRACKING MICROCHIP OR INFO ABOUT BIOMETRICS LIKE BLOOD GROUP
   
   I ASK MODI
   
   WARN INCOME TAX DEPT NOT TO HARASS THE POOR
   
   IN DUE COURSE ABOLISH INCOME TAX
   
   http://ajitvadakayil.blogspot.in/2014/11/abolish-income-tax-in-india-have.html
   
   WE NEED TO NUMBER CRUNCH THE SMALL SCALE INDUSTRIES AND GIVE A REAL AND TRUE GDP FIGURE .   THE WHITE JEWS DONT LIKE THIS
   
   http://ajitvadakayil.blogspot.in/2016/06/gpi-dog-shall-wag-gdp-tail-not-vice.html
   
   LAWYER KAPIL SIBAL KNOWS SHIT ABOUT FINANCE
   
   SO WHAT IS PINCHING SIBAL BABY ?
   
   The Finance Bill, 2017,is pushing through changes to Income Tax Act, 2016--
   
   It now allows income tax raids to take place without furnishing a reasonable explanation (as was required under IT Act, 1961) for doing it, and without needing a court order.
   
   Previously as soon as the IT dept got a court order--papers were shredded and computer hard disks were deleted and bleached 
   
   THE ASSES OF CORRUPT POLITICIANS ARE ON FIRE !!
   
   capt ajit vadakayil
   ..

Capt. Ajit VadakayilMarch 27, 2017 at 10:33 PM

DONALD TRUMP

LISTEN UP

JEWESS ANGELA MERKEL HAS A STRANGE HOLD ON PUTIN

ZIONIST JEWS HAVE A STRANGE HOLD ON ROTHSCHILDs APCO BRANDED INDIAN PM MODI -- A PATHETIC GUJARATI FELLOW WHO ALSO DID THE "WHITE REVOLUTION " AND DECIMATED OUR PRICELESS VEDIC HUMPED COWS.

TRUMP-- WE ASK YOU TO KICK JEW ROTHSCHILDs CARBON TAX AT HAMBURG G20

THIS BLOGSITE KILLED THE CRIMINAL KOSHER CHICAGO CLIMATE EXCHANGE

THE JEWS LOVE TO MAKE MONEY OUT OF THIN AIR-- DONT THEY ?

Under Obama's CAP AND TRADE bill, businesses would be assessed a tax on how much CO2 they produce (their Carbon Footprint) or in other words how much they add to global warming.

If a company produces less CO2 than their allotted measured limit, they earn a Carbon Credit. This Carbon Credit can be traded at the CXX exchange--CHICAGO CLIMATE EXCHANGE .

Another company, which has gone over their CO2 limit, can buy the Credit and "reduce" their footprint and tax liability. It will be like trading shares on Wall Street.

SOON WE WOULD HAVE BEEN TRADING HUMAN FARTS WITH BEEF EATERS FARTING THE LEAST

Van Jones sits on the board of ShoreBank and is one the marketing directors for "green" projects. This commie bastard and Jew Rothschild'a agent Van Jones was appointed by Obama in 2009 to be a Special Advisor for Green Jobs at the White House.

Rothschild's Nobel Prize winner Al Gore was one of the partners to originally help fund the CHICAGO CLIMATE EXCHANGE.

Gore baby --nay-- bastard -- He also founded a company called Generation Investment Management (GIM) and registered it in London, England. GIM has close links to the UK-based Climate Exchange PLC, a holding company listed on the London Stock Exchange.

This company trades Carbon Credits in Europe (just like CXX will do here) and its floor is run by Goldman Sachs. Along with Gore, the other co-founder of GIM is Hank Paulson, the former US Treasury Secretary and former CEO of Goldman Sachs.

His wife, Wendy, graduated from and is presently a Trustee of Wellesley College. Yes, the same college that Hillary Clinton and Jan Piercy, a co-founder of Shorebank attended.

SUCH A NICE CIRCLE OF JEWS

It was estimated that over 10 TRILLION dollars each year will be traded on the CXX exchange.

At a commission rate of only 4 percent, the exchange would earn close to 400 billion dollars to split between its owners, all Obama cronies. At a 2 percent rate, Goldman Sachs would also rake in 200 billion dollars each year. MAJOR HAFTA WOULD GO TO JEW ROTHSCHILD

But don't forget SHOREBANK. With 10 trillion dollars flowing though its accounts, the bank will earn close to 40 billion dollars in interest each year for its owners (more Obama cronies), without even breaking a sweat.

ShoreBank was a community development bank founded and headquartered in Chicago. At the time of falling PHUTTTT on its kosher face it had $2.6 billion in assets..

Bill Clinton and Hillary Clinton were major supporters of the bank-- Clinton described ShoreBank as "the most important bank in America

Under a grant from the Ford Foundation in the 1980s, ShoreBank worked with CRYPTO JEW Muhammad Yunus to help him incorporate Grameen Bank in Bangladesh. Yunus and Grameen Bank were awarded the Nobel Peace Prize in 2006 by JEW Rothschild.

In 2010 ShoreBank had a troubled asset ratio of 300% compared to a national average for all banks of 15%. The scandal revolves around the banks close ties to President Obama and the unusual circumstances surrounding its rescue effort.

There existed a CRIMINAL collusion between Barrack Obama, George Soros, Al Gore, Goldman Sachs, CCX, and Generation Investment Management (GIM-London based co-founded by AL Gore).

CCX, the Chicago Climate Exchange, was expected to gross 12 Trillion a year is Cap-N-Tax passes. JEW Obama played a pivotal role in the formation of the CCX.

Barrack Hussein Obama, Board Member of the Joyce Foundation, funded the formation of the CCX.

ALL HAPPENED USING LAYERING AND SHELL COMPANIES

CONTINUED TO 2-

1. 
   Capt. Ajit VadakayilMarch 27, 2017 at 10:34 PM

   CONTINUED FROM 1-
   
   CRIMANAL Obama’s connections to shady characters and groups like Goldman Sachs, the Chicago Climate Exchange, Bill Ayers, Van Jones, Reverend Jeremiah Wright, etc must be investigated
   
   Shorebank was totally focused on domestic and foreign microfinancing,-- heavily engaged in the financing of ‘green’ projects and ‘green’ jobs, and had a host of ties to the Obama and Clinton administrations--with Rothschild's agent commie Van Jones being the bandmaster
   
   Shorebank contributed heavily to the campaigns of Barack Obama, and Hillary Clinton
   
   Shorebank had become a shill and a front for the cap-and-trade crowd and those with a radical environmentalist agenda.” Perhaps most intriguing is that the Joyce Foundation is a major shareholder of Shorebank, the same foundation that has been interconnected to the Chicago Climate Exchange and the entire cap-and-trade scheme.
   
   Today all know the relation between Rothschild Commie Bill Ayers and Obama. Obama, Board Member of the Joyce Foundation, funded the formation of the CCX..The Joyce Foundation was established in 1948 by JEWESS Beatrice Joyce Kean of Chicago--an agent of Jew Rothschild.
   
   Obama funneled money to Ayer’s brother to form the CCX. London-based Generation Investment Management controlled by Jew Rothschild purchased a huge stake in Chicago Climate Exchange.. The founder of GIM is none other than former Vice President Al Gore along with Goldman JEWS.
   
   Goldman Sachs owns ten percent of the CCX and its 12 Trillion a year potential. (CCX is 10% owned by Goldman Sachs (GS) and 10% owned by Generation Investment Management (GIM).) Gore, Goldman, and Cap and Trade
   
   It is estimated Al Gore alone will probably rake in 18 billion dollars just in the first year. Of course, Obama's "commissions" would be held in trust for him at the Joyce Foundation.
   
   This would have been the largest "scam" or "legal heist" in world history.
   
   HULLO ALICE IN WONDERLAND APCO MODI
   
   GUJJU DIMAAG MEIN KUCH GHUSA ? 
   
   DHOKLA AUR SHRIKAND KHAO.
   
   SHAYAD KUCH FARAK PADENGA..
   
   capt ajit vadakayil
   ..

LEELA OF JEWS  !

http://www.heraldscotland.com/news/15183346.Scots_shell_companies_used_to_launder___4_billion_out_of_Russia/

When someone who has filed for bankruptcy or any other person conceals assets, makes false statements under penalty of perjury (orally or in writing), files a false claim, destroys or conceals financial records relevant to the case, or gives or takes a bribe, that person has committed criminal bankruptcy fraud, a federal crime.

Bankruptcy fraud can also occur when a debtor attempts to bribe a creditor. Creditors are not required to file a claim against the debtor after the debtor files for bankruptcy. The debtor might, for example, try to convince a creditor not to file a claim by offering a cash payment if the creditor agrees not to file a claim.

Trustees, attorneys, or other officers of the court embezzle funds that are part of the bankruptcy estate. These acts are also considered bankruptcy fraud.

Red Flags/Common Characteristics  of bankruptcy fraud----

• Company with a short life

• Well-established company with good credit recently taken over by a new group trying to hide the change in ownership

• Fraudulent financial statements

• False credit references

• No receivables listed on schedules (cash basis operation)

• Inventory scheduled is very low

• Warehouse full of high-volume, low-cost items

• Disproportionate liabilities to assets

• Mainly temporary employees

• Fake social security numbers used to obtain credit

• Leased equipment

• Few local creditors, and unsecured debt is primarily comprised of trade creditors

• Lulling letters to creditors (mail/wire fraud)

• No corporate bank account, or existing account has no funds

• Cash paid up front to rent location

• Same individuals involved in previous "failed companies”

• Unusual banking activities (check kiting, bank fraud, money laundering and structured transactions)

• Schedules and statement of financial affairs are incomplete or not filed

• Person unfamiliar with debtor's operations testifies at 341 meeting of creditors

• Taxes not paid

• The same attorney repeatedly represents these types of debtors

A bleedout is similar to a bustout.   It usually involves an existing company and a depletion of assets by insiders over a relatively long period of time. There are concealed assets or false statements in this situation. Long-standing owners or corporate raiders can be perpetrators of the crime.

Examples Of Bleedouts:--

Corporate Raider Bleedouts:   A stable US company with very liquid assets, such as a large pension and/or profit sharing fund, is acquired in a leveraged buyout. The company is operated for the sole purpose of allowing the insiders to loot the company.  A Chapter 11 is filed to allow the insiders to complete their scheme.

Business transactions are complex and purposefully confusing, which makes fraudulent conveyance actions expensive and difficult to prove. This type of scheme is used in all types of industries.

"White Knight" Bleedouts: ---A business consultant is hired by a troubled business to assist it in acquiring new financing and streamlining operations. On occasion, the "white knight" is given an ownership interest in the business. The consultant takes control of the financial operations of the business and uses his position to convert company assets. 

Often this includes failing to pay withholding taxes, failing to make pension fund contributions, diversion of receivables, paying personal expenses with company funds, taking excessive salary and bonuses and, in some situations, paying false invoices to entities or individuals related to the consultant.

Parallel Entities:--- A long-standing company experiences financial problems. Insiders of the company create a new business in the same industry just prior to or soon after the bankruptcy filing. In some cases, the debtor sells some of its assets to the new entity for a fraction of their value just prior to the bankruptcy. The non-debtor entity is usually not disclosed. 

The insiders operate the debtor until they have successfully transferred the debtor's inventory, receivables, customers and goodwill to the new company. In addition, the insiders may use the debtor to purchase goods and services for the new company with the intent of never repaying the Chapter 11 administrative creditors. This is usually a lawyer-assisted fraud.

Assignment for the Benefit of Creditor (ABC)/Insider Sales:---- These cases include non-bankruptcy workouts in which misrepresentations are made to creditors (mail fraud) and the assets are sold to undisclosed insiders for inadequate consideration.

The secured creditor agrees to the transaction because its security position improves if the new company is debt free. The scheme usually terminates in an involuntary bankruptcy.

Red Flags/Common Characteristics:----

· Recent changes of ownership/new players

· People with no prior involvement in the business have money transferred to them, both pre-petition and during the bankruptcy

· Changes in accounting or cash flow practices for no apparent business reason

· Payment stream to a certain creditor suddenly balloons

· Sudden decrease in inventory; sharp increase in aged receivables

· Inventory, equipment and machinery are sold a short time before the case is filed

· Capital infusions of corporate officers suddenly renamed "loans" and paid back

· Excessive salaries and bonuses

· Complicated asset transfers with no apparent purpose

· Depleted pension funds

· Leveraged buyouts

· Employee contributions for health care and pension funds have been deducted and converted by the debtor

· A new company is formed just prior to or immediately after the bankruptcy case is filed

A Ponzi scheme (pyramid) invoices soliciting investments by promising interest rates well above the market rate. Early investors recover their investments with the promised rate of return and encourage others to invest. 

As the pyramid begins to crumble, investors are unable to recover their original investments and interest is no longer paid. Chapter 11 cases are filed to allow the debtor to continue the scheme. When the scheme collapses before bankruptcy, either a voluntary or involuntary case is filed.

The essence of these schemes is a promise of a very high return on an investment. Once it fails, many investors are reluctant to complain because they realize they have been duped. lt is important to identify and contact the investors because they generally are excellent witnesses.

Advanced Fee Swindle: ---This is a variation of a Ponzi scheme. Either through advertisements or direct contact, individuals or businesses in financial trouble are contacted and offered generous loans. The loans require an advanced fee to guarantee the loan and start the loan processing. 

The perspective borrower is assured "nothing will go wrong–the loan is done as soon as you send in the advanced fee." Of course, once the fee is sent, something does go wrong and the borrower is in even deeper financial trouble.

Red Flags/Common Characteristics:---

· Numerous contacts from investors/creditors about the case

· List of creditors, schedules and statement of financial affairs show mostly unsecured debt owed to numerous individuals

· No prospectus or the prospectus provided is untruthful

· Numerous complex investment vehicles, such as limited partnerships

· Enormous management or general partnership fees to insider controlled companies

· Monthly operating reports show receipts from individuals

· Income is from individuals with little or no other outside income shown

· Lulling letters to investors explaining that the delay in their interest/loan/deal payment is outside the control of the manager and, if they will be patient or continue to send money, the problems will be resolved

Sham Facilities: ----These schemes include nursing homes, shelters, drug rehabilitation programs and other health-related homes set up to secure federal and state funding.

They provide few if any services to the clients and convert the funds received for their own use. In some instances, the government funding programs require the services to be rendered at no cost to clients. 

In those situations, the perpetrators require clients to sign over their food stamps and welfare checks to them in order to remain at the shelter.

Red Flags/Common Characteristics:----

· Numerous complaints of poor or non-existent services

· Adverse publicity by media about operations

· Investigations by state/federal regulators concerning operations, etc

· Lack of normal books and records

· Unlicensed shelters, rehabilitation facilities, half-way houses, etc

· Deductions from employee paychecks for health care coverage but funds not remitted to the insurance company

· Red flags from bustout schemes

Rent/Equity Skim: ---The perpetrator acquires partnership interest or title to the property, but does not assume the mortgages. He puts his management company in control of the property. The management company collects rent, receives exorbitant management fees, does not maintain the facilities and makes no payments to the secured lenders. 

The mortgagee is contacted by the perpetrator who attempts to extort the lender to buy out his interest. When the lender attempts to foreclose, the perpetrator deeds the property to a corporate entity which files bankruptcy. The transfer of title is repeated several times, with bankruptcies filed to cover all the transfers.

Property Title Skim: ---This fraud is similar to the one described above. The major difference is that the perpetrator convinces the victim to deed his home over to him for little or no cash. The victim then pays rent to the perpetrator who does not pay the existing mortgage or seek new  financing. Bankruptcies are filed to delay foreclosure.

In some instances, the perpetrator will deed a fractional interest of the property to other bankruptcy estates, without their knowledge. This complicates and delays foreclosure.

Red Flags/Common Characteristics:-----

· Failure to make mortgage payments

· Transfer of entire or fractional interest shortly before foreclosure

· Multiple fractional interests in real property listed on the schedules

· Frequent Quit Claim Deeds transferring interest in the property

· Numerous D.B.A.'s and individuals in chain of title

· Use of mail drop boxes as business address

· Post-petition transfers into a bankruptcy estate

· New corporation formed holding a single asset.

· Schedules amended to dramatically increase the number of pieces of real property owned.

Bankruptcy Fraud By The Debtor:-- Debtor fraud is the most common type of bankruptcy fraud. The system is used to allow the debtor to conceal and transfer assets from his creditors/victims and to receive a bankruptcy discharge of his pre-petition debts.

Concealment and False Statements:---The concealment of assets and related false statements constitute over 73 percent of all bankruptcy crimes, according to the latest FBI statistics. A debtor who fails to list assets on his/her bankruptcy schedules commits both the crime of concealment and false statement. 

By concealing assets, the debtor attempts to preserve property for future use and to deprive creditors of their fair share of assets. Concealment may take the form of omission of assets in their entirety or the gross undervaluation of assets.

Examples Of Concealment---Failure to Schedule Assets: Typical examples include P.I. lawsuits, real estate, bank and investment accounts, stocks, jewelry, art work and interest in non-debtor entities.

Undervalued Assets: ---Assets are listed, but their value is grossly understated or deemed worthless. The intent is to persuade the trustee and creditors not to liquidate the assets.

Transfer of Assets Pre-petition: ---The debtor transfers assets with little or no consideration to third parties with the agreement that after the case is closed the property will be returned tothe debtor. The relationship to the debtor or the agreement with the transferee is not disclosed.

Transfer of Assets Post-petition: --Debtor sells or transfers assets without court approval. If the debtor does seek court approval, the debtor does not disclose his relationship to or agreements with the purchaser. 

For example, the debtor sells the property below its value to a straw buyer who agrees to convey it back to him. A similar situation occurs when the purchaser agrees to give the debtor part of the purchase price "under" the table and court approval is sought for the purchase at a lower price to allow for the transfer.

Red Flags/Common Characteristics:---

· Claims of theft or large gambling loss just before bankruptcy

· Inability to account for property listed on insurance policies or personal financial statements in existence before bankruptcy

· Incomplete schedules–frequent amendments in response to creditor questions

· Unexplained change in financial circumstances

· Debtor shows no ownership interest in residence

· Tax returns not filed for the relevant years

· Debtor "confused" about his assets and financial affairs

· Unsecured debt does not reconcile with assets listed, e.g., large number of medical bills, but no lawsuit listed

· Failure to list prior bankruptcies

Collusive Involuntary Bankruptcy--- There has been an increase in collusive involuntary bankruptcies in which creditors file an involuntary case at the debtor’s direction or with his approval. The collusive bankruptcy is often part of a larger scheme, frequently involving real estate foreclosures.

Examples of Collusive Involuntary-- Collusive Involuntary: The perpetrator gets his co-conspirators to file an involuntary against him or his corporate entity. The involuntary is used if the debtor has been prohibited from filing for a period of time. 

A bustout or bleedout perpetrator may use an involuntary to conceal his involvement in a corporation where he is involved in a number of pending corporate bankruptcies. The bankruptcy system is used to gain the benefit of the automatic stay without having to disclose any information about the debtor during the involuntary period.

Red Flags/Common Characteristics:--

· Debtor subject to a 180-day bar on refiling suddenly has an involuntary filed against him

· Creditors have recently acquired the claim asserted in the involuntary

· Professional” creditors who reappear in suspicious sounding deals

· Same attorney is involved in the voluntary and involuntary bankruptcies

· Creditors are “former” long-term business associates of the debtor’s insider

· Insider has filed voluntary bankruptcy cases for at least several corporate or partnership  entities in a short period of time, and the cases filed are suspicious

THIS POST IS NOW CONTINUED TO PART 29, BELOW--

http://ajitvadakayil.blogspot.in/2017/03/shell-companies-for-money-laundering_28.html

CAPT AJIT VADAKAYIL
..