What type of penalties does the Anti-Kickback Statute provide?

The Federal Anti-Kickback Statute is a criminal statute and the penalties for violations of the law can be severe. They include fines of up to $25,000 per violation, felony conviction punishable by imprisonment up to five years, or both, as well as possible exclusion from participation in Federal Healthcare Programs.

What are possible consequences of violating the Anti-Kickback Statute?

Criminal penalties and administrative sanctions for violating the AKS include fines, jail terms, and exclusion from participation in the Federal health care programs. Under the CMPL, physicians who pay or accept kickbacks also face penalties of up to $50,000 per kickback plus three times the amount of the remuneration.

What is the crime for taking kickbacks?

Indeed, kickbacks are illegal payments in exchange for some type of preferential treatment or improper service. They’re considered a form of bribery, and both the payer and the receiver can be criminally charged.

What is an activity that the anti-kickback laws prohibit?

The Anti-Kickback Statute and Stark Law prohibit medical providers from paying or receiving kickbacks, remuneration, or anything of value in exchange for referrals of patients who will receive treatment paid for by government healthcare programs such as Medicare and Medicaid, and from entering into certain kinds of …

Why is Anti-Kickback Statute important?

At its heart, it is an anti-corruption statute designed to protect federal health care program beneficiaries from the influence of money on referral decisions and thus is intended to guard against overutilization, increased costs, and poor quality services.

Who enforces the Anti-Kickback Statute?

The Department of Justice (DOJ)
The Department of Justice (DOJ) enforces the criminal penalties of the AKS. The criminal penalties include fines of up to $100,000 and ten-years’ imprisonment.

What is the penalty for violating False Claims Act?

The False Claims Act, 31 U.S.C. §§ 3729, provides that anyone who violates the law “is liable to the United States Government for a civil penalty of not less than $5,000 and not more than $10,000, . . . plus 3 times the amount of damages.” But how does that apply in practice?

Are all kickbacks illegal?

Under federal law, government contractors and subcontractors are strictly prohibited from giving or taking kickbacks. Although it’s illegal, kickbacks are a very common form of government corruption.

What qualifies as a kickback?

A “kickback” is a term used to refer to a misappropriation of funds that enriches a person of power or influence who uses the power or influence to make a different individual, organization, or company richer. Often, kickbacks result from a corrupt bidding scheme.

What are the penalties for violating the Anti-Kickback Statute?

The Anti-Kickback Statute imposes a number of penalties for violations. Here is a summary of the major penalties: Criminal penalties can include fines of up to $25,000 per kickback Civil penalties can include a prison sentence of up to 5 years per kickback

What is the Federal Anti Kickback Act of 1986?

Knowledge and willfulness –The Federal Anti Kickback Statute of 1986 requires one to knowingly and willfully engage in the prohibited conduct for the imposition of criminal sanctions. The Federal Anti Kickback Act incurs a criminal violation charge because it requires a specific intent to induce referrals or orders for services.

What happens if you are charged under the Anti-Kickback Act?

Any person found to have willingly participated in activities prohibited by the Anti-Kickback Act may be subject to criminal actions resulting in fines, imprisonment, or both. Any person who knowingly engages in prohibited conduct may be subject to civil actions resulting in fines.

What is the purpose of the kickback law?

The act also provides that the inclusion of kickback amounts in contract prices is prohibited conduct in itself. Purpose of kickback–The Act requires that the purpose of the kickback was for improperly obtaining or rewarding favorable treatment. It is intended to embrace the full range of government contracting.