Is backdating a check illegal
In addition to significant financial losses to investors, Corporate Fraud has the potential to cause immeasurable damage to the U. Stock options are corporate incentives that allow the holder to purchase stock at a fixed “strike” price sometime in the future, regardless of the prevailing market price.
Generally, the strike price is the cost of the stock on the date the options were granted.
During FY 2006, the FBI investigated 490 Corporate Fraud cases resulting in 171 indictments and 124 convictions of corporate criminals.
Numerous cases are pending plea agreements and trials.
The Health Care Fraud Unit oversees investigations targeting individuals and/or organizations who are defrauding public and private health care systems.
Areas investigated under Health Care Fraud include: billing for services not rendered, billing for a higher reimbursable service than performed (upcoding), performing unnecessary services, kickbacks, unbundling of tests and services to generate higher fees, durable medical equipment fraud, pharmaceutical drug diversion, outpatient surgery fraud, and Internet pharmacy sales.
These organizations have been able to provide referrals for expert witnesses and other technical assistance regarding accounting and securities issues.
Through the manipulation of financial data, the share price of a corporation remains artificially inflated based on fictitious performance indicators provided to the investing public. While the number of cases involving the falsification of financial information remains relatively stable, the FBI has recently observed a spike in the number of Corporate Fraud cases that involve the backdating of executive stock options.
Backdating stock options inflates their value to the holder at the expense of regular shareholders.