Something fishy

[brightncheerful]

Whilst checking a prospective client's credentials, I discover that its latest accounts are 'Filleted.'

I was just about to post as a joke when I thought I'd best check in case I'd be showing my ignorance.

Legit description. According to an accountancy website: "small or micro companies have the option not to include the profit and loss account … and/or the directors’ report, with the accounts filed with Companies House."

Having yesterday read on Wolf Street about how "Steinhoff Committed $7.4 Billion in Fraud (at least). Here’s How" - https://wolfstreet.com/2019/03/16/how-steinhoff-committed-7-4-billion-in-fraud - I can't help thinking a less obvious description for the activities of a small company might be better in the long run?

[Slarti]

Not that long ago I did due diligence on a prospective new client as they only had the minimum small company accounts at CoHo. So I asked for their full accounts for the last 3 years, before giving them a credit account. It was a total shell company without even a bank account, based at some very expensive offices in the city.

I passed on that one.


Slarti