Reply #146: Tax free = Slush fund? Embezzlement opportunities?

[Phoebe Loosinhouse]

It starts life as non-reportable income. It could pay for all kinds of unsavory activities

Who knows where this money really goes? Exactly how is the income booked on the corporate accounts?
Who tracks and follows it? I could imagine big embezzlment/fraud opportunities by buying it for fake employees and providing fake death certificates to the insurance companies. If I can think of that in about 30 seconds, I can bet that someone else has.

Imagine mining companies (or any high risk company) taking out these policies? Does it put lives at risk if they are worth more as dead peasants than live employees? Has any company had unusally large and unexpected payouts? ( An odd number of employees as victims of hit-and-run, malfunctioning furnances, small plane crashes, late night single car automobile accidents, etc. etc?)

This is the exact equivalent of credit default swaps only on people instead of bad bonds.

Really, really bad juju written all over this.