A Fraudulent Scheme in Bankruptcy Involves a Protracted Plan to Con

Multiple Choice

A fraudulent scheme in bankruptcy involves a protracted plan to con a creditor into thinking it is dealing with an upstanding debtor. The debtor makes payments on time and lulls the creditor into shipping more and more goods. The debtor then begins missing payments and tells the creditor it is having cash flow problems. The truth is the debtor has sold the creditor's merchandise and made off with the money. This fraudulent bankruptcy scheme is known as ___.

A) skimming
B) looting
C) bleedout
D) bustout