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My son works at a small clothing manufacturer, approx 30 employees. Over the last year, the owner has been making some very curious business decisions such as:
1. Deciding to only fill about half of the orders, even though the clothes are in stock
2. Hiring more employees who are paid to just sit around and do nothing
3. Sinking a lot of revenue into factory expansion, we're talking hundreds of thousands
4. Giving out raises to employees that are absurdly high (i.e. after 1 month of work an employee gets 50% pay raise regardless of performance)
To me, this sounds like a front for laundering money where the owner is spending absurd sums that don't make business sense. I assume that the owner doesn't really care if the business loses money or not, because the primary purpose is to use ill gotten gains and use the clothing manufacturer to "wash" it so therefore the owner doesn't care if he takes a 50% hit.
Of course, maybe I've been watching too much Ozark on Netflix too, but this setup seems awfully familiar to Marty's plans.
Or the owner may be trying to make sure any heirs don't inherit anything.
Or there may be a buyout in the works that requires puffing up the business.
Or there may be a divorce that is guiding some decisions.
Or...
The first part of any investigation in search of causation is to not rule out anything, and to attempt to include everything that is a possibility. Only then do you move on to eliminating possibilities.
To me, this sounds like a front for laundering money where the owner is spending absurd sums that don't make business sense. I assume that the owner doesn't really care if the business loses money or not, because the primary purpose is to use ill gotten gains and use the clothing manufacturer to "wash" it so therefore the owner doesn't care if he takes a 50% hit.
Of course, maybe I've been watching too much Ozark on Netflix too, but this setup seems awfully familiar to Marty's plans.
The problem with that, is the thing about that is the guy is spending it, not laundering it.
What are some examples of money laundering?
A criminal or criminal organization owns a legitimate restaurant business. Money obtained from illegal activities is gradually deposited into a bank through the restaurant. The restaurant reports daily cash sales much higher than what it actually takes in.
What business isn’t a front for money laundering legit or illegal. They are all legal vehicles for moving money and avoid taxation through various means.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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There are probably many businesses that are laundering money, or fronts for illegal activities such as gambling, drugs or prostitution. Without someone ratting them out to the authorities, they can go on for a long time. We had a chain of massage parlors in nearby cities that recently were busted for prostitution. When I had a business myself a neighboring
sushi restaurant would have people come in after closing, and from midnight to 5am on Friday nights would be playing some kind of card game, and money was on the tables. There is a dental office a few miles away that has odd hours, open on Sunday but not Saturday, and for such a small office have way too many cars parked then. That one could be legitimate, but it looks suspicious, like the OP's situation, there could be legitimate facts that we are not aware of.
Waaaay back when, I worked at a fish processing facility - a few of us staff were pulled off our lines for a new project. The rumor mill got around to us that it was designed to 'fail' so it could be used for tax purposes.
I didn't care as long as I got paid - it was a seasonal job.
The problem with that, is the thing about that is the guy is spending it, not laundering it.
OP must think giving clothes to Goodwill is doing laundry. The idea of money laundering is to actually have some clean money left after said laundering. The business owner described is just wasting money not washing it.
iOS ypur son paid minimum wage and the rest in cash?
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