money laundering through construction?? (1 Viewer)

[guidomerkinsrules]

@dtc i think you might be the best for this, but others feel free to chime in
so if you were in house construction/remodeling - how/what would you do to kick money back into your pocket?
(*maybe that's not technically money laundering, but fraud or something)

 

[efil4stnias]

@dtc i think you might be the best for this, but others feel free to chime in
so if you were in house construction/remodeling - how/what would you do to kick money back into your pocket?
(*maybe that's not technically money laundering, but fraud or something)

fake invoices.
For instance....claim HVAC work is $10,000 when its really $3000 and the $7k goes into pocket. Are you asking how that 7k gets into pocket without being recorded?


but more specific, are you saying the general contractor would be the one padding his pocket?

 

[livefromDC]

I think he's saying, if you've been binge watching Ozarks, why is construction a reliable way to launder the drug cartel's money?

 

[Saint_Ward]

Cook the books.

 

[guidomerkinsrules]

I think he's saying, if you've been binge watching Ozarks, why is construction a reliable way to launder the drug cartel's money?

that's a good guess, but it's actually a guy in the neighborhood that i've grown suspicious of
i have zero evidence that he's doing anything untoward, but it did get me curious about how he would get away with it if he were ethically challenged

 

[Brad Mojo]

Because the drug cartels own the businesses contracted to do the work. So that $10,000 invoice for HVAC installation that was never done now appears to be $10,000.00 worth of legitimate/legal income.

 

[guidomerkinsrules]

Cook the books.

how would that work though?

 

[Swamprat]

$1000 toilets (1970s prices) comes to mind.

 

[efil4stnias]

how would that work though?

lots of cash kept on hand.

For instance, 10k payment to HVAC....you pay the HVAC guy with a check ( and match an invoice ) then cash the check, pay him $3k cash and keep 7k cash.

Then go to Harrahs and gamble. Win 5k cash but lose 7k. you just made a dirty 7k a clean 5k.

hope its not one of my contractor clients. lolol

 

[Saint_Ward]

how would that work though?

Like what everyone else is saying. Make fake inflated invoices. Buy HVAC equipment, make a fake invoice that says it cost a % above what you paid for it, sell it for a profit, now you double dip.

probably set up a shell corporation, like a supply company, that buys the goods, stores them, and sells them to your other company. That way you can charge yourself whatever.

 

[livefromDC]

that's a good guess, but it's actually a guy in the neighborhood that i've grown suspicious of
i have zero evidence that he's doing anything untoward, but it did get me curious about how he would get away with it if he were ethically challenged

Untoward is my kind of word.

 

[zeetes]

this sounds like nasa.

 

[dtc]

Like what everyone else is saying. Make fake inflated invoices. Buy HVAC equipment, make a fake invoice that says it cost a % above what you paid for it, sell it for a profit, now you double dip.

probably set up a shell corporation, like a supply company, that buys the goods, stores them, and sells them to your other company. That way you can charge yourself whatever.

That appears to be what Trump did and it's worked out well for him I guess.

 

[SystemShock]

Are you asking about skimming/fraud or money laundering?

 

[Saint_Ward]

That appears to be what Trump did and it's worked out well for him I guess.

I was trying to avoid that example, being that this is on the EE. But yes.