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Tunneling (Fraud) - explained

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Danielle
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Tunneling, is a colloquial term for a specific kind of financial fraud. It is defined as "the transfer of assets and profits out of firms for the benefit of those who control them". For example, a group of major shareholders or the management of a publicly traded company orders that company to sell off its assets to a second company at unreasonably low prices. The shareholders or management typically own the second company outright, and thus profit from the otherwise disastrous sale.

Reference: http://en.wikipedia.org/wiki/Tunneling_(fraud)

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