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Shell companies and the who of corruption

Tom Fox | June 24, 2018

While corruption is one type of fraud, there is a big difference between more traditional fraud and corruption in that corruption involves the payment of monies stolen from a company, through a variety of mechanisms, to a customer or other person to induce that person to purchase goods or services. The customer or other person is the recipient of the stolen monies, as opposed to traditional fraud, where the perpetrator steals something of value from a company and keeps it. 

A key part of any fraud scheme are the attempts to keep it hidden, meaning those involved in bribery and corruption have to work in some manner to hide the scheme from not only their company but also from regulators’ prying eyes. This goes beyond simply trying to hide the acts of bribery and corruption, but also includes the disguising of identities of those benefiting from the crimes. While most companies are attuned to the “how” of corruption, they are paying less attention to the “who” of corruption....

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