Being tried on the federal level is an extremely serious matter and can have extremely severe penalties. These charges can take many forms, with fraud being a common option. The problem with this is that fraud is inferred from a misrepresentation of yourself or other information. While this can be an attempt to profit from deception, sometimes it could simply be an honest mistake. In the world of business, the desire to get ahead can cause some to stray into illegal practices.
In one case, two men were indicted by a federal grand jury after an investigation into their business practices. They stand accused of involvement in a kickback scheme and have been charged with honest services fraud, mail fraud and conspiracy to commit both of the above. One of the two men worked for a company responsible for processing payment requests and checks. Managing a center in Carson, California, at the time, his role was to supervise the transfer of merchandise to various other distribution centers.
However, it is alleged that he conspired to channel business to specific companies which had been created by a second man. In return, he is believed to have been paid kickbacks from the profits made by the companies. It is thought that he concealed his connection with the companies, reassigned contracts to them and approved invoices for unnecessary packaging.
The value of the fraud scheme is thought to total $3.5 million. Each of the fraud charges they face could carry fines of up to $250,000 and as many as 20 years in prison. If you are faced with federal charges of this nature, the advice of an attorney could be crucial. Acting quickly to build a strong defense could change the course of your future.
Source: West Orange Times & Observer, "Two Ocoee men indicted in contract fraud and kickback scheme," Zak Kerr, Oct. 20, 2014