What are Kickbacks?

shutterstock_567556222A kickback occurs when a commission is paid in exchange for services rendered.  Federal law prohibits kickbacks in government contracts and the federal healthcare programs.

Kickbacks for Government Contracts

Under federal law kickbacks involving government officials or public funds provided by the government are illegal.  According to federal statute, kickbacks refer to any compensation of any kind (i.e. monetary or thing of value) provided to a prime contractor, sub-contractor, or employee thereof, in order to obtain or reward favorable treatment in connection with a prime or sub-contract, relating to a contract or contractual action entered into by the federal government.

What is the Anti-Kickback Statute?

This statute is designed to protect patients and federal health care programs from fraud and abuse.  It inhibits the use of money to influence health care decisions. Anyone who knowingly and willfully accepts or offers payment of any sort and in any manner intended to influence the referral of Medicare and Medicaid services can be charged with a felony.

Penalties for receiving or paying a kickback:

Fines up to $25,000 per violation and/or up to 10 years.

Charged With a Crime Involving Kickbacks?

If you or your company has been accused of receiving or paying kickbacks, a South Carolina Criminal Defense Attorney at the Strom Law Firm, LLC can help. With long standing experience with both state and federal cases, we know what it takes to aggressively defend you. Call a South Carolina Criminal Defense Attorney at the Strom Law Firm today for a free consultation. 803.252.4800.


  1. […] Kickbacks can harm patients not only through indirect financial exploitation and abuse, but also by giving nursing home staff access to drugs that could be used as chemical restraint, such as Risperdal, which is an antipsychotic medicine that has come under fire recently for being wrongly prescribed to nursing home patients with dementia. Although federal law prohibits “chemical restraint” – using medications to strongly sedate patients with mental disorders or dementia who may engage in disruptive behaviors – recent reports show that several skilled nursing facilities in the United States overuse dangerous antipsychotic medications on their elderly residents, which is a form of nursing home abuse. […]

  2. […] Kickbacks refer to a form of negotiated bribery in which one returns part of the purchase price of an item to a buyer or buyer’s representative with the intent of inducing a purchase or improperly influencing purchases in the future. They are most commonly seen with health care services, where providers may use self-referrals within large organizations. This is known as a Stark violation and can result in penalties. […]

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