When you first opened your Mississippi business, you likely had high hopes that it would do well and that you would feel successful. In fact, you likely had many goals, dreams and ideas for your company, but something you may not have ever anticipated was coming under investigation for fraud.
Unfortunately, accusations of fraud can come about for various reasons, and even something that a person may consider innocent could actually be illegal. For example, you may want to incentivize others to consider your company for certain goods or services, or you may want to reward others for bringing in more business to your company. While you may simply think of this as a reward system, others could see it as kickbacks.
What’s the problem?
Like many people, you may think that offering incentives is just part of the job when it comes to getting others to help you grow your company. However, kickbacks are often illegal because they offer extra compensation or gifts to parties who show preferential treatment to a particular company. In essence, the law often considers kickbacks as a type of bribery. As a result, you and your company could face fraud charges.
Why would you come under suspicion?
Various issues can raise suspicion that a company is offering kickbacks. Some common issues that could raise red flags include the following:
- Parties choose your company to provide goods or services even if other companies offer lower bids.
- Your company has faced regulatory or legal issues regarding operations before, but companies still choose to work with your business.
- Despite having poor performance reviews, outside parties continue to choose your business.
- Your company offers a higher-than-average price for your goods or services.
- Management for other companies insists that their staff use your company.
While these issues do not necessarily mean that kickbacks are taking place (and you may not believe that your company falls into any of these scenarios), a complaint could still spark an investigation. If you or your company does come under investigation for possible business-related fraud, you will certainly want to handle the problem as best as possible. Contacting an experienced defense attorney at the first sign of a probe into your business affairs could give you a jump start on handling the issue effectively.