People always say mattress stores are shady and used for money laundering. Not totally sure I understand exactly what money laundering is. How would this occur at a mattress store?
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One of the best options for money laundering is actually providing a ‘service’ rather than selling a Good. Any Goods you sell have to be accounted for and traced back to supplier. Your Stock and Warehouse supply has to match your Sales. It also means you end up spending a lot on Stock to make it look like your a thriving business.
But if you provide a ‘service’ however…
For example, my friend provides a ‘Carpet Cleaning’ service. He has a Van as well as all the necessary equipment to do the job. In fact, he actually does the job legitimately on the side. He might clean 3 carpets a week. Nothing major. His main business is selling Cocaine however. But the Carpet Cleaning enables him to fake jobs and sales – without having to invest in stock, and because he is a Mobile Business – also less likely to be inspected by a Taxman sitting outside your store counting customers.
It’s also less obvious of a service such as Garden maintenance, or building work – because there is legitimately no way a Taxman can enter a random persons home and check their Carpets to see if they’ve been cleaned. It’s very difficult to prove if the business is generating more Cash than it actually is.
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