oldbaldyone

Answer: Leo is describing a money laundering scheme, with the intent of taking dirty drug money and making it legit. Money laundering is largely about confusing the source of the money, to make it look like it came from a legitimate source. Leo is saying that the dealer gives the money to a courier, who gives it to a guy to put it into a dummy company. The dummy company writes a check to the courier in the dealer's name. This puts about 5-6 steps in the chain of custody of the money already. The dealer takes out a loan using the check as collateral (let's say a $10000 loan with a $10000 check as collateral). The dealer never repays the loan, so the bank keeps the check (nobody loses because the amounts are equal). This puts even more steps in the chain of custody. If a law enforcement agency wanted to try and track the money back to the source, they would have to unwind all those steps, being able to prove each step occurred with evidence. Very hard to do.

oldbaldyone