Warning signs of a kickback bribery scheme in California

On Behalf of | Aug 11, 2021 | Bribery

Businesses, or even government institutions, in California lose a lot of money through bribery and kickback schemes. Since companies greatly depend on efficient cash flow to thrive, such schemes can lead to constant financial struggles or the ultimate failure of a business. If you want to prevent being a victim of kickbacks and bribery schemes, here is how you can spot it when it’s happening.

1. Presence of unqualified third parties

People who organize bribery and kickback schemes often have a third-party individual who is not qualified but appears to make things work around your company. These people may not have the appropriate qualifications, but they seem to have gotten the job. Therefore, when you conduct your due diligence in your business and find an employee, supplier, consultant or contractor with questionable qualifications, it may be a red flag.

2. Poor quality services or products

When you notice that your business keeps getting low-quality products or services despite complaints, then some form of kickback bribery scheme could be going on. Maybe the supplier is paying that employee to keep accepting the faulty items because it’s hard to find someone who wants success but uses the industry’s worst tools. So monitor the relationships between that employee and supplier to stop this scheme.

3. When your invoices don’t make sense to you

Do your invoices have suspicious extra charges, expenses or fees? Or have you ever received an invoice without supporting work, or there was no documentation to prove that invoice’s transactions? If yes, then a kickback scheme may be going on behind your back.

4. Inappropriate or unnecessary purchases

Bribery and kickbacks can also be disguised in irrelevant or unessential purchases from any supplier. So if you notice your employee or colleague ordering a large number of unnecessary products, something could be amiss. Carry out some due diligence to catch such unwarranted activities.

Taking these steps today could save you a lot of trouble down the road. However, if you suspect that bribery is already taking place in your company, you may want to consult an attorney.