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]]>When it comes to the AKS, a “federal health care program” is any plan or program that offers health benefits funded either completely or in part by the United States government. Examples of federal health care programs include TRICARE military health insurance, Medicare and Medicaid, among others.
If you violate the AKS, you may face a wide range of serious penalties. You may have to pay as much as $50,000 for each violation plus three times the amount of whatever you accepted as payment for your referrals. You may, too, have to spend as much as five years behind bars for each violation of the AKS. You may also receive a felony conviction. If so, this comes with its own set of collateral consequences in addition to the criminal ones you face.
Violating the AKS also exposes you and your health care practice to possible exclusion from participating in federal health care programs such as TRICARE and Medicaid.
Note that the government does not need to prove that a patient suffered harm as the result of an AKS violation to hold you responsible for it.
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]]>The post Was it an accounting error or embezzlement? appeared first on Hilder & Associates.
]]>According to the U.S. Department of Justice, embezzlement occurs when a person fraudulently takes property entrusted to them.
The relationship between employer and employee is often complicated. This is particularly true when the organization is a small business and employees are like family. Issues can also occur when company policies allow significant latitude regarding employees’ activities and security is light.
Prosecutors must prove several points for a conviction, including the following:
If your job includes control over particular property, cash or accounts, the prosecutor must prove intent for the theft.
Everyone makes mistakes on occasion. Disorganized bookkeeping, clerical errors, poorly defined job responsibilities, lack of expertise and poor accounting policies can make a mistake seem like embezzlement. The dollar value associated with the stolen or missing property can determine whether the charge is a misdemeanor or a felony.
A misdemeanor could result in up to $1,500 in fines and one year in jail. A felony conviction is much more serious and could include up to 99 years in state prison, depending on the details of the case. Consequences of a felony conviction typically include the loss of civil liberties. It can also affect your ability to find a new job, a place to live and secure a loan.
Situations regarding embezzlement charges can become complicated. The relationship you have with your employer or manager could affect how the prosecution approaches your case. Understanding your options can help you mount an effective defense and enable you to get the charges reduced or dismissed.
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]]>The post What are the penalties for an embezzlement conviction in Texas? appeared first on Hilder & Associates.
]]>Under Texas Penal Code, Title 7, Chapter 31, embezzlement is the misappropriation of funds or property without the owner’s consent with the intention of depriving the owner of it. Generally, embezzlement involves and employee diverting assets from their employer without their employer’s knowledge. It can involve one person or a team working in collaboration.
In Texas, the punishment for embezzling funds depends on the value of the assets stolen, among other factors such as repeat convictions for financial crimes. For example:
There are de facto consequences as well. A mere arrest for or charge of embezzlement can permanently damage the hard-won career of an innocent person. In the insular world of business and finance, which often rely on reputation and word-of-mouth to advance one’s career, it can derail an otherwise promising life.
Given the severity of the offense and the life-altering penalties it can have, it is easy to find oneself intimidated in the face of embezzlement charges. However, the state has a very high burden of proof to obtain a conviction. Prosecutors must demonstrate beyond a reasonable doubt that the defendant stole money, property or other assets. Given the difficult nature of white collar crime investigations and the expense of prosecuting them, the District Attorney’s office is often to willing to work with the defendant’s counsel to dismiss or reduce certain charges or sentences.
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]]>The post Poor bank oversight may lead to loan application fraud charges appeared first on Hilder & Associates.
]]>As noted by BankInfoSecurity.com, auditing financial statements may reveal red flags. Not all financial institutions, however, have shown the expected consistency in their oversight procedures.
Before approaching lenders, loan applicants typically create business plans and financial statements for a bank officer’s review. Most business plans include information about a company’s primary customers and the products or services offered. A bank’s due diligence may include contacting a business’s customers or suppliers to inquire about the relationship.
A bank officer may also verify information through public records and ask to tour the business’s physical location. If a business does not show sufficient proof of income or cash flow, many bank officers decide to not approve the loan.
After applying for business loans at two separate banks, a Houston resident obtained more than $1.6 million. As reported by Click2Houston.com, federal prosecutors allege he falsely represented company payroll expenses.
Instead of using the loans to pay employees as specified by their terms, he allegedly spent the proceeds on personal items and entertainment. The Department of Justice seized more than $700,000 in funds and accepted a guilty plea on charges of money laundering and wire fraud.
By failing to perform a thorough background check, a bank’s poor oversight may lead to a federal investigation. If documents submitted to a bank do not match government tax records, an applicant may face allegations of loan fraud. In some cases, a charged applicant’s plea deal may reduce the severity of the penalties.
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]]>The post Higher prices may raise allegations of bribery or FCPA violations appeared first on Hilder & Associates.
]]>With increasing costs of supplies, energy and shipping, both U.S. manufacturers and their employees may face serious issues. Prices may, for example, fluctuate rapidly in the case of selling and manufacturing high-ticket medical equipment, particularly with shipments moving between countries and paid for with volatile currencies. Suspicious or somewhat overzealous officials may consider allegations of bribery or violations of the Foreign Corrupt Practices Act.
As noted by U.S. News and World Report, unreasonable pricing may appear to reflect signs of bribery involving foreign officials and individuals along the supply chain. It may cause law enforcement to consider the possibility of FCPA violations
Although it may reflect uncontrollable increases in global shipping expenses combined with a decrease in manufacturers’ supply lines, when prices balloon significantly above fair market value, investigators may become suspicious. It may appear as though the high cost includes bid-rigging or invoice padding.
Manufacturing companies’ employees may have sole authorization to create bidding documents. They may list accurate prices with expectations of a reseller or agent using them. Alterations or forging documents made by a distributor, reseller or sales agent, however, may lead to trouble. The manufacturer or its employees might face allegations of bribery. Ultimately, the manufacturer has liability for pricing issues under the U.S. Foreign Corrupt Practices Act.
Higher payments made for equipment and long-distance shipments during extreme shortages may increase the chances of supply chain and pricing issues. Manufacturers and third parties may require a proactive defense strategy based on well-maintained and accurate documentation in the event of an FCPA investigation.
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]]>The post Do SEC whistleblowers have legal protection from retaliation? appeared first on Hilder & Associates.
]]>Fortunately, the Dodd-Frank Wall Street Reform and Consumer Protection Act gives whistleblowers wide-sweeping protections against retaliation, provided they qualify under the law.
Under Dodd-Frank, whistleblowers have legal protection from retaliation for proffering information they reasonably believe implicates their employers in an unlawful scheme. For purposes of the law, retaliation is any adverse employment action, including termination of employment, harassment, discrimination and demotion.
To qualify for retaliation protection under federal law, whistleblowers must submit an in-writing complaint to the SEC before the retaliation occurs. If your employer takes adverse employment action against you before you notify the SEC of a securities violation, you may not qualify for legal protections.
Arguably, the most significant part of Dodd-Frank’s whistleblower protections is the private right of action it gives to whistleblowers. If your employer retaliates against you because of your SEC tip, you may be able to file suit in federal court for damages. Permissible damages are extensive, as you can pursue double back pay, reinstatement and legal costs.
Because taking advantage of whistleblower protection is often a time-sensitive matter, you do not want to delay. Ultimately, if you comply with strict time frames, you may either protect your career or put it back together.
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]]>The post What does the FCPA do? appeared first on Hilder & Associates.
]]>According to the U.S. Securities and Exchange Commission, the FCPA applies to anyone anywhere as long as there is a publicly traded company involved in the situation. The FCPA has a range of rules and requirements that could put a business in violation.
A large part of the FCPA is to ensure records are orderly. Business records have to show transactions and provide proof there is nothing untoward happening. Through proper recordkeeping, the government can ensure all businesses operate on the same level without any influence that would make things unfair.
The FCPA helps keep order by imposing sanctions for businesses in violation. If a business owner or other employee does anything that would break the FCPA, the business can face very harsh sanctions that can cost it money and lead to issues with the future of the organization. If the governing agencies see fit, a business could have to have oversight from an outside group to ensure it continues doing fair business.
The FCPA overall helps ensure a business cannot get a leg up over the competition when doing business outside the U.S. It keeps an even playing field where a business cannot use bribery to get favors from foreign governments or other actors that would give it an advantage over other businesses trying to do business in that location.
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]]>The post Proving Ponzi scheme allegations appeared first on Hilder & Associates.
]]>Instead of using investors’ money to invest in a business venture, a Ponzi scheme directs funds toward personal expenses unrelated to genuine investments. Investors may receive account statements claiming their investments increased in value, but a prosecutor may prove profitable activities never took place.
When investors believe the fund’s value has grown, they may invest further. They may also tell others about the fund, and those individuals may also invest in hopes of receiving a high return.
When statements show their original investments increased in value, existing investors may request cash payouts. To convict on a Ponzi scheme fraud, a prosecutor may need to prove the fund’s manager sent payouts with money received from new investors.
As reported by CBSDFW.com, a Dallas resident alleged to have operated a Ponzi scheme pleaded guilty to mail fraud. Reportedly, he used U.S. mail to send new investors letters thanking them for joining the investment family.
Prosecutors originally charged the individual with two counts of fraud and one count of mail fraud. In exchange for admitting to a Ponzi scheme, prosecutors dropped the two fraud charges; the defendant only received sentencing for the mail fraud charge.
To convict on charges related to a Ponzi scheme, prosecutors generally show existing investors received money from a fund’s new investors. A charged individual, however, may have an option to request a plea deal and avoid trial.
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]]>The post Preparing for an internal investigation of criminal charges appeared first on Hilder & Associates.
]]>This guide can help individuals in this situation prepare for an internal white collar crime investigation at work.
Usually, an internal investigation arises because of major claims against an employee or the company at large. Examples of accusations that typically warrant this type of investigation include:
The status of the accused person also determines the need for an investigation. For example, human resources will more likely conduct a full analysis about accusations against an executive than a lower-level assistant.
The company decides to complete an internal investigation when allegations can potentially affect the firm’s reputation, cost shareholders and investors money, and result in legal liability. These investigations can also improve processes to prevent future allegations of criminal actions.
Employees who face an internal investigation should expect to receive respectful, confidential treatment. The company should inform the employee in question about his or her right to legal representation, particularly during any formal proceedings, and document all aspects of the process in writing.
Investigators must remain completely neutral and firms must consider fairness when conducting interviews. For example, an internal investigation can result in a discrimination lawsuit if an employee can prove that his or her protected class, such as disability, race or gender, resulted in the investigation.
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]]>The post Do employers have to protect private information in an internal investigation? appeared first on Hilder & Associates.
]]>Understanding your privacy rights is essential. You have the right to maintain your innocence, which includes ensuring your private information is kept confidential.
The Texas Workforce Commission explains your employer should not be making the findings in the internal investigation public. As the investigation unfolds, only those involved should have access to the information.
Until the investigation is complete and the final decision made, your employer should not level accusations against you or tell others you are guilty of something.
Files your employer has on you should remain confidential. Only those with a need to access the information should do so. This includes information about the investigation or previous disciplinary actions.
During the investigation, your employer should not do things that violate general policy. For example, if you have a locked cabinet in your office and the general policy does not tell you it is subject to searches, then your employer cannot search it even during an investigation.
If your place of employment is the target of an investigation, and you feel that you may become liable, contact Hilder & Associates, PC.
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