What are kickbacks? Kickbacks and federal penalties

It’s rare to find any department or service that does its function without getting into white-collar crimes. Almost every jurisdiction has gone through these white-collar crimes. However, this level of corruption and bribery often occurs at higher levels where people spend money in return for something.

Many times it is referred to as kickbacks. What are kickbacks and how can you prevent them from happening will be discussed later in the article.

What are kickbacks?

Kickback is referring to an illegal act of corruption and is somewhat similar to a bribe but is different when it comes to factors involved with it. Kickbacks happen as a result of the pre-negotiated exchange of money/goods/services. Kickbacks are a form of secret conspiracies between two parties in order to gain something in return illegally. Mostly kickbacks that happen between involved parties do not occur by themselves but through brokers. These brokers often negotiate to make initial deals to begin the exchange.

Kickbacks and corruption in the private sector

Bribing or illegal executions of kickbacks are common, especially in the private sector. Oftentimes kickbacks are involved when there’s a hiring process and when there’s a merger of companies to have mutual gains.

Kickbacks are based on illegal payments, goods, services, and most of the time favors. People charged with white-collar crimes should contact a criminal defense attorney on an immediate basis.

Kickback vs bribe what’s the difference?

Contrary to people’s beliefs, bribery and kickbacks are different from each other as they are two different crimes. When bribery happens there’s a gain at only one side. The party in need of certain gain is subjected to being extensively extorted in a certain way. In addition, when illegal execution of white-collar crimes involves bribery, the one-party spending the money will be largely at the gaining end. On the other hand, Kickbacks are partially negotiated for sharing the gains after an illicit exchange which often occurs in secrecy.

Regardless of the fact that you face convictions against bribery or kickback, it is essential to contact a lawyer just after your arrest.

Forms of Kickbacks

Fraudulent cash invoices

Fraudulent cash invoices are some of the common examples of kickbacks. These invoices are made with an overly estimated amount of the purchased goods and services. With this, the kickbacks are directly invoiced through bills which becomes the reason for involving other company employees and members of the other departments in the kickback scheme.

Quid Pro quo

Kickbacks quid pro quo deals and exchanges happen with the mentality of ‘one hand washes the other”, which means you ‘you do something for me and I do something for you’. Unluckily, these types of kickbacks are too normal in the private sectors and higher government settings. Additionally, they often land their doers in the legal hot waters in most cases.

Crimes involved in kickbacks do not however involve violence but while foreseeing financial benefits, people tend to be inclined towards taking the law into their hands when there’s a chance of betrayal.

Although kickbacks, bribery, and frauds carry harsh penalties, involving in such violence can bring in severe legal ramifications that only have the potential of affecting your life but your career and professional position.

Kickbacks and corruption in government sectors

Federal laws strictly prohibit government employees, contractors, and subcontractors from engaging themselves in kickbacks. Despite this, kickbacks are largely induced in the government sector as well. If government employees are found involved in quid pro quo kickbacks, there could be severe legal consequences.

The penalties are not just limited to contractors and sub-contractors but to public employees. They would also be charged with life sentences and with other criminal charges.

Illegal activities like kickbacks and bribes at government healthcare departments such as Medicaid and Medicare are also illegal and carry harsh penalties.

Business collusion

Another type of kickback happens between business collusion where it is common to have gained through illegal means. The private sector also prohibits the illegal commission of gain exchange where bribes and kickbacks are illegal. Also, convictions against these white-collar crimes involve prison sentences that eventually affect your tendency of applying for employment and loan. Plus, it can directly become responsible for revoking your license to work and drive.

The kickbacks associated with charges should be considered seriously. Criminal convictions as a result of kickbacks and bribes regardless of the private or public sector can imply serious and lasting implications on a person’s right of livelihood, ability to earn, and freedom.

Penalties associated with kickback convictions

Congress passed an Anti-kickback legislation in 1986 through which government employees, contractors, and sub-contractors are prohibited from involving in kickbacks and bribes. Violating the legislation will result in prison time of five years and a fine of $5000.

Involvement in the schemes of kickbacks can carry both state and federal charges. However, it is always beneficial to contact a criminal defense attorney at your earliest. Criminal defense attorneys can design strategies and implement legal tactics to minimize your charges and help you get favorable outcomes. Consult a local experienced criminal defense attorney today.