Kickback Prosecutions In Usa
🔍 Kickbacks: Overview
What Are Kickbacks?
Kickbacks are illegal payments or benefits given in exchange for preferential treatment or contracts. For example, a company might pay a government official to win a contract or a doctor might receive payments for referring patients to a specific service.
Why Are Kickbacks Illegal?
They corrupt decision-making.
They violate laws on honest services, fraud, bribery.
They undermine fair competition and public trust.
Relevant Laws for Prosecution:
18 U.S.C. § 1954: Kickbacks in federal healthcare programs.
18 U.S.C. § 1341 & 1343: Mail and wire fraud statutes often used to prosecute schemes involving kickbacks.
18 U.S.C. § 666: Theft or bribery concerning programs receiving federal funds.
18 U.S.C. § 371: Conspiracy to commit offense or defraud the U.S.
Anti-Kickback Statute (42 U.S.C. § 1320a–7b(b)): Prohibits knowing and willful payment of remuneration to induce referrals for federal healthcare programs.
⚖️ Key Kickback Prosecution Cases
1. United States v. Greber, 760 F.2d 68 (3d Cir. 1985)
Facts: A doctor received payments disguised as consulting fees for referrals to a pharmaceutical company.
Issue: Did the payments constitute illegal kickbacks under the Anti-Kickback Statute?
Holding: The court held that payments made to induce referrals are illegal kickbacks regardless of how they are disguised.
Significance: Defined the scope of illegal kickbacks — not just direct bribes but disguised payments too.
2. United States v. Skelos, 707 F.3d 97 (2d Cir. 2013)
Facts: Former New York State Senate Majority Leader Sheldon Silver was charged with accepting kickbacks disguised as consulting fees.
Issue: Does acceptance of payments for official acts constitute honest services fraud and kickbacks?
Holding: The court upheld the conviction, finding the payments were bribes and kickbacks.
Significance: Clarified the link between official acts and illegal kickbacks under federal fraud statutes.
3. United States v. McNair, 605 F.3d 1152 (11th Cir. 2010)
Facts: Healthcare providers paid kickbacks to secure patient referrals under Medicare.
Issue: Application of the Anti-Kickback Statute and mail/wire fraud statutes.
Holding: The court affirmed convictions, emphasizing the law’s strict prohibition on remuneration influencing referrals.
Significance: Reinforced the strict liability nature of healthcare kickbacks.
4. United States v. Hopper, 634 F.3d 222 (4th Cir. 2011)
Facts: Defendants involved in a scheme providing kickbacks to secure federal contracts.
Issue: Whether the kickbacks violated federal fraud and bribery statutes.
Holding: Affirmed convictions based on corrupt payment schemes.
Significance: Showed application beyond healthcare to government contracting broadly.
5. United States v. Nejad, 631 F.3d 967 (9th Cir. 2011)
Facts: Physician paid kickbacks for patient referrals related to Medicare fraud.
Issue: Whether kickbacks under healthcare statutes could also support wire fraud charges.
Holding: Court affirmed, allowing overlapping use of fraud and kickback laws.
Significance: Demonstrated prosecutorial tools in complex kickback schemes.
6. United States v. Walden, 490 F.3d 1006 (9th Cir. 2007)
Facts: Businessman paid kickbacks to win government contracts.
Issue: Kickbacks as bribery under federal criminal law.
Holding: Conviction affirmed.
Significance: Reinforced the anti-corruption message in public procurement.
7. United States v. Travers, 233 F.3d 1327 (11th Cir. 2000)
Facts: Defendant orchestrated kickbacks in Medicaid program billing.
Issue: Legality under Anti-Kickback Statute.
Holding: Conviction upheld.
Significance: Emphasized protection of public funds in health programs.
🧠 Summary Table
| Case | Context | Key Takeaway |
|---|---|---|
| Greber | Healthcare kickbacks | Disguised payments can be illegal kickbacks |
| Skelos | Political kickbacks | Payments for official acts = kickbacks/bribery |
| McNair | Medicare patient referrals | Strict liability for healthcare kickbacks |
| Hopper | Government contracting | Kickbacks violate fraud/bribery laws broadly |
| Nejad | Medicare fraud & wire fraud | Overlapping charges possible |
| Walden | Public contracts | Kickbacks punishable as bribery |
| Travers | Medicaid billing | Protecting public healthcare funds |
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