Front companies are often employed in corruption schemes, generally in conjunction with other schemes such as bribery.  Front companies are established by government officials who then arrange procurement so that bids are rigged and are awarded without any real competition.  Typically, the officials reap the financial (and illegal) benefits of contracts awarded to their companies without any real expectation of delivering on the contract, with the result that performance is marginalized.

Previously unknown entities serving as subcontractors on a large project;

Company registered in secrecy jurisdiction;

Payment made for invoices to companies in secrecy jurisdiction;

No visible performance history of the company;

Opaque ownership structure;

Owners listed as law firms or incorporation agents;

Lack of visible corporate facilities;

Point of contact for company relates to personal residence or answering service;

Point of contact for company relates to personal residence or answering service;