Kickback


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Kickback

In the context of finance, refers to compensation of dealers by sales finance companies for discounting installment purchase paper.
In the context of contracts, refers to secret payments made to insure that the contract goes to a specific firm.

Kickback

A payment or discount that one may receive in exchange for performing certain services. A kickback may be both legal and proper, or it may be a bribe. This depends on the specific nature of the kickback and the rules surrounding different transactions.

kickback

An illegal fee or rebate paid to someone in order to gain that person's decision or recommendation for the award of business. Under the Real Estate Settlement and Procedure Act (RESPA), federal law prohibits kickbacks to real estate agents from mortgage companies.

References in periodicals archive ?
Kickback typically occurs when a chisel cutter, instead of cutting normally and forming a chip, cuts too deeply and becomes lodged in the work piece.
Bribes and kickbacks are bad business, period," said Robert Khuzami, Director of the SEC's Division of Enforcement.
According to the DOJ, Omnicare allegedly solicited and received kickbacks from pharmaceutical manufacture Johnson & Johnson (J&J) in exchange for agreeing to recommend that physicians prescribe Risperdal, a J&J antipsychotic drug, to nursing home patients.
According to the indictment, Sato concealed about 265 million yen in taxable income for three years through 2000, most of which he collected as kickbacks and rewards from firms and as capital to set up a firm.
Among those indicted were Mark Weinberger, who allegedly obtained more than $69,000 in kickbacks from a vendor doing work in 1997 and 1998 at 347 West 39th Street and 360 Riverside Drive; and Scott Smith, who managed 201 West 70th Street and 138 West 17th Street, from which he allegedly took more than $97,000 in kickbacks through a vendor in 1997 and 1998.
Consequently, government prosecutors were unsure what arrangements would be construed as a kickback and health care providers had little assurance that their commercial arrangements were properly structured.
Indeed, the giving or taking of kickbacks for medical referrals is hardly the sort of activity a person might expect to be legal.
A West Virginia rebuild company owner that paid kickbacks for additional work has received a hefty fine plus probation and home confinement for his role in the scheme.
Assistant Attorney General in charge of the Department of Justice s Antitrust Division, Bill Baer, said : 'These types of kickback schemes subvert the competitive process and increase costs to American consumers.
Palmer-Jeffery yesterday denied there was anything underhand about the deal, although the owner-trainer who first alerted the Racing Post was outraged, saying: "I personally thought it was appalling that someone is looking to rehouse racehorses and then give trainers a 15 per cent kickback.
5 million to settle charges that it illegally overcharged the government and engaged in a kickback scheme, completing a settlement it announced in February.
Separately, Amgen was sued by New York and 14 other states following an investigation into a nationwide kickback scheme to boost drug sales, New York Attorney General Andrew Cuomo said.