Long Firm is a basic type of Financial Fraud. The phrase comes from the formation of the anglo saxon for fraudulent (gelang) and italian for signature (firma). In short it is the crime of signing for a fraudulent bill of goods1. The practice of buying goods on credit, selling them for cash, and then declaring bankruptcy.

  • Check kiting

  • phony collateral

  • Business “bust out”

    Tino’s methodical shift from sharp business practice into fraud is an example of one way that a long firm can make use of a legitimate trading reputation. It contrasts with another possible scenario—the episode of OPM Leasing, a fraudulent business where nothing ever seemed to be planned.

1. Davies, D. Lying for Money: How Legendary Frauds Reveal the Workings of Our World. (Profile Books, 2019).