Paper hanger, a legal term most often used in professional and financial settings, can be confusing or ambiguous to those not familiar with the jargon of the law. To unravel the legal enigma of paper hanger, one must first look closer at the meaning of the term and how it is used within the context of the law.
The Meaning of Paper Hanger in Legal Terms
Paper hanger is a term that is used to describe someone who engages in malicious legal activities. Specifically, a paper hanger is someone involved in illegal securities transactions, fraud, or embezzlement. In the legal arena, paper hangers are seen to be malicious.
Examples of Paper Hangers
Paper hangers come in many forms. Examples of paper hangers are those that manufacture or sell fraudulent financial documents, those that misrepresent companies and their services or outcomes, and even those that may be employed by businesses and engage in insider trading. Another paper hanger example would be a person who attempts to intercept and misuse private financial information for their own or someone else’s benefit.
The Bottom Line
Paper hanger is a term used to describe individuals engaged in securities fraud and other nefarious activities. It can be difficult to identify paper hangers as they often employ deceitful tactics to skirt the law. However, with an understanding of the term paper hanger and examples of how it can be used illegally, one can more easily recognize and avoid such unethical activities.