Intentional illegal use of the business practices of contracts and marketing to essentially steal product, money, assets from another entity. Defrauding creditors using a deliberately designed business activity . For example, knowing that the manufacturing plant will not deliver product due to impending bankruptcy, the plant executives take a large product order with a high-percentage payment of money owed to expedite. A liquidator can bring a case to court that could require parties aware of the fraudulent activity to pay if the liquidator learns that a business has been fraudulent during the move of a company to bankruptcy. A third party usually has to admit that it benefited from fraudulent activity as it is typically hard to prove fraudulent action has occurred due to the high burden of proof . Contrast fraudulent trading with insider trading . Also refer to wrongful trading , cross firing.
Black’s Law Online Dictionary
