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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Money laundering is where you create a legitimate reason for why you have a bunch of money you gained through illegal means. Lets imagine you are a millionaire drug dealer. You still need to pay taxes on that million dollars. However reporting hey i made a million dollars from the drug trade to the government is probably not a great idea if you want to continue making a million dollars off the drug trade. This means you need to create a legitimate paper trail for how you got the money. The more money you can launder the more of it you can use at any one time. A good way to do this is by operating a business that primarily deals in cash. Your basically self reporting how much business you do and cash is pretty hard to track down. A government is going to have a very hard time proving exactly how many people use a store if the they primarily deal in paper currency. This means you can just lie and say business is doing better than it actually is. Then you claim the money from your illegal business comes from your totally “legitimate” business. Money laundered.
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