ABSTRACT
The word “kickback” refers to an illegal payment (in any form such as money, property, goods, service, or favor) made to another person in exchange for an illegal act. A common form of a kickback occurs when a vendor gives an amount of cash to a purchasing agent in exchange for payment of an inflated invoice. For example, a seller of restaurant supplies sends an invoice to the purchasing agent of a restaurant chain. The invoice is false in that the provided supplies were substantially overpriced or that the supplies were provided in a lesser amount than is shown on the invoice. The purchasing agent approves the invoice and sends it to the accounts payable department. A check is sent to the vendor. The vendor kicks back to the purchasing agent a percentage of the overcharge.
