State v. Joseph Diorio (069597)

Judge CUFF

(temporarily assigned) delivered the opinion of the Court.

In 1999, Joseph Diorio and two others conceived and executed a “bust-out” financial scheme by creating a business for the purpose of defrauding creditors. In a bust-out scheme, a company is formed and establishes a credit line presenting itself to the business community as a reputable company. Initially, it places small orders with suppliers. As it establishes a favorable payment history, the company’s credit limit is increased. Once the company’s suppliers are satisfied that the company has established a reputation for…