Case Studies
Solicitation of Rebate
A manager of a supermarket chain was responsible for overseeing the operation of some 20 stores of the group. At a liaison dinner with food suppliers, he met a director of a company supplying roast meat. Knowing that the company director was eager to do business with the supermarket, the manager offered to help him obtain a concessionaire contract for roast meat at one of the supermarket stores, provided that the director would rebate him 5% of the sales generated from the stall. The director agreed. Later, the supermarket manager also assisted the roast meat company in obtaining concessionaire contracts for stalls at other stores.
The manager accepted over $50,000 from the company director over a six-month period.
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Offer of Commission
A luxury goods retail company earns its large portion of income from group tourists. Facing increasingly fierce competition, the Chairman of the company offered commissions to tour guides employed by various travel agencies to induce them to bring the group tourists to patronise his company’s showrooms. To conceal his act, the Chairman channeled the company’s money to another company set up by himself, and distributed the commissions, amounting to millions over several years, through the latter. The travel agencies concerned did not know that their employees had been receiving commissions from the retail company, nor did they permit employees from receiving commissions from merchants. In defending himself during prosecution, the Chairman of the company claimed that offering commission to secure referral of clients was a norm in the industry. See More
