May 30th, 2012

marcus 2013

Looking for a legal term

Is there a technical name for the type of fraud we see in the film / play The Producers? Specifically, overselling shares in the profits of some venture, then ensuring that the venture fails and there are no profits, so the overselling never becomes apparent?

The example I'll be using involves selling shares in the profit of a space expedition, then sabotaging the ship.