A LONG-FIRM FRAUD IS DEFINED AS A BUSINESS WHICH ORDERS LARGE AMOUNTS OF GOODS ON CREDIT WITH KNOWLEDGE THAT THE BUSINESS CANNOT OR WILL NOT PAY FOR THE GOODS. UNDER THE ADVISORY COUNCIL'S REPORT, LONG-FIRM FRAUD CONVICTIONS WILL RECEIVE MAXIMUM SENTENCES WHICH ENCOMPASS 90 PERCENT OF ALL COURT SENTENCES ACTUALLY IMPOSED BETWEEN 1974 AND 1976. BECAUSE MOST MINOR CHECK FRAUDS ARE IN THE SAME OFFENSE CATEGORY AS LONG-FIRM FRAUD, THE PROPOSAL'S EFFECT WILL BE TO REDUCE SENTENCES FOR LONG-FIRM FRAUDSTERS TO A MAXIMUM OF TWO YEARS. THE ADVISORY COUNCIL'S METHODOLOGY OVERLOOKED THE FACT THAT MANY LONG-FIRM FRAUD CASES ARE CURRENTLY PROSECUTED AS CONSPIRACY, WHICH CARRIES MUCH LARGER PENALTIES. MOREOVER, DESPITE EVIDENCE FROM A STUDY OF 258 PERSONS THAT EVEN A FIVE YEAR SENTENCE IS NOT A DETERRENT, THE COUNCIL PROPOSED REDUCING THE MAXIMUM SENTENCE FOR CONSPIRACY TO FOUR YEARS. IN ADDITION, THE COUNCIL'S RECOMMENDATION ON BANKRUPTCY ARE UNLIKELY TO INCREASE RESTITUTION TO VICTIMS FOR SEVERAL REASONS. FIRST, LEGAL RESTRICTIONS PREVENT MAN CASES FROM QUALIFYING FOR CRIMINAL BANKRUPTCY ORDERS. IN ADDITION, MUCH OF THE POTENTIALLY RECOVERABLE MONEY HAS BEEN QUICKLY SPENT OR SPENT ON SERVICES RATHER THAN RECOVERABLE GOODS. MOREOVER, PROVING THAT FALSE INFORMATION HAS BEEN GIVEN IS DIFFICULT. FINALLY, THE GOVERNMENT DEPARTMENT FOR DEALING WITH SUCH CASES IS UNDERSTAFFED. USE OF A CRIMINAL BANKRUPTCY ORDER WILL HAVE LESS DETERRENT EFFECT THAN THE POSSIBILITY OF IMPRISONMENT. UNLESS STAFFING AND FEEDBACK ON RESULTS OF CRIMINAL BANKRUPTCY ORDERS IMPROVE, THEY SHOULD BE REGARDED AS SUPPLEMENTS RATHER THAN SUBSTITUTES FOR SENTENCES. LONGER SENTENCES RATHER THAN ONLY REQUIRING REPAYMENT, ARE NEEDED TO DETER FUTURE COMMERCIAL CRIMES. A REFERENCE LIST IS INCLUDED. (CFW)