Long Firms: What You Need to Know About Their Legal Definition
Definition & Meaning
A long firm refers to a type of business that is established with the intent to commit fraud. While it may appear to operate like a legitimate company, its primary goal is to deceive customers and suppliers. The firm typically starts by offering cash advances to customers, gradually increasing these amounts. Once the business has collected a significant sum of money, the individuals behind the long firm disappear with the funds and any goods obtained from suppliers.
Legal Use & context
Long firms are relevant in the context of fraud and financial crime. Legal practitioners may encounter this term in civil cases involving fraud claims or in criminal cases where individuals are prosecuted for fraudulent activities. Users may need to manage forms related to fraud allegations or seek remedies for losses incurred from such schemes. Legal templates from US Legal Forms can assist individuals in navigating these situations effectively.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company advertises itself as a loan provider, offering cash advances to individuals. Over time, it collects substantial payments but suddenly shuts down, leaving customers without their money. (hypothetical example)
Example 2: A business claims to sell high-demand electronics on credit, receives payments from customers, and then disappears, taking the money and the products. (hypothetical example)