Tunneling (fraud)
Tunneling is a colloquial for financial fraud committed by company’s own management or major shareholders, consisting of illegally pumping out valuable property into their own, private firms.
A new term
The term ‘tunneling’ was probably first noted in this context in the Czech Republic (tunelování in Czech, tunelář for the fraudster) during the first half of 1990s, when first of large, previously privatised banks and factories went bankrupt with huge debts and bank accounts virtually empty. It was discovered later that managements of such were deliberately transferring company’s property and real estate into their own, private businesses, sometimes in offshore locations.
The term became common label for this kind of criminal activity among Czechs and it is also widely used by Slovaks. Subsequently the term had appeared in specialised literature in English and was subsequently used during the Asian financial crisis in the late 1990s.
Copyright: Wikipedia information about Tunneling (fraud)– This article is licensed under the GNU Free Documentation License. It uses material from the
Wikipedia article "Tunneling (fraud)". More from Wikipedia
A new term
The term ‘tunneling’ was probably first noted in this context in the Czech Republic (tunelování in Czech, tunelář for the fraudster) during the first half of 1990s, when first of large, previously privatised banks and factories went bankrupt with huge debts and bank accounts virtually empty. It was discovered later that managements of such were deliberately transferring company’s property and real estate into their own, private businesses, sometimes in offshore locations.
The term became common label for this kind of criminal activity among Czechs and it is also widely used by Slovaks. Subsequently the term had appeared in specialised literature in English and was subsequently used during the Asian financial crisis in the late 1990s.
Copyright: Wikipedia information about Tunneling (fraud)– This article is licensed under the GNU Free Documentation License. It uses material from the
Wikipedia article "Tunneling (fraud)". More from Wikipedia
Comments (No comments)
There are no comments for this post so far.
Post a comment