CROOKED BANKRUPTCIES
U.S. DEPRIYED OF MILLIONS. NEW YORK, Aug. 30. The New York World says the legitimate business concerns in the United States are defrauded each year.of 250, 000,000 dollars by a new scheme wi crooked bankruptcies. "The crooked bust," as it is known in police parlance, has its centre in NewYork, but is being copied throughout the country, and t,he law cannot aid the creditors, the newspaper said. The authorities say it is the most popular "racket" every known to commercial sharps. While there are many ramifications of the scheme, the paper says, the essence of the plan is essentiallv the same. The "racket" starts with money from "angels"—men who put up the small capital needed to set up in business. A man in charge, known as a "front," purchases on credit huge amounts of merchandise, sells it to cash buyers or to "fences" at from 30 to 50 per cent, cash value, then hidas Cue cash and calmly goes into bankruptcy. Little of the loot is ever recovered. During tbe last year United States Attorney Bnckner and the National Association of Credit Men have been concentrating on a.plan in an effort to beat it,
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/PBH19261005.2.92
Bibliographic details
Poverty Bay Herald, Volume LII, Issue 17156, 5 October 1926, Page 7
Word Count
196CROOKED BANKRUPTCIES Poverty Bay Herald, Volume LII, Issue 17156, 5 October 1926, Page 7
Using This Item
The Gisborne Herald Company is the copyright owner for the Poverty Bay Herald. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International licence (CC BY-NC-SA 4.0). This newspaper is not available for commercial use without the consent of the Gisborne Herald Company. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in