Dictionary.net

Intentional illegal use of the business practices of contracts and marketing to essentially steal product, money, assets from another entity. Defrauding creditors using a deliberately designed business activity. For example, knowing that the manufacturing plant will not deliver product due to impending bankruptcy, the plant executives take a large product order with a high-percentage payment of money owed to expedite. A liquidator can bring a case to court that could require parties aware of the fraudulent activity to pay if the liquidator learns that a business has been fraudulent during the move of a company to bankruptcy. A third party usually has to admit that it benefited from fraudulent activity as it is typically hard to prove fraudulent action has occurred due to the high burden of proof. Contrast fraudulent trading with insider trading. Also refer to wrongful trading, cross firing.