What is bribery?

Under most state criminal codes, bribery is a crime involving the corruption of public officials. Anyone who gives a public servant money or other valuables in exchange for services in a specified way or any public servant who accepts money or other valuables to act in a specified way is guilty of bribery. The public servant can be any government official or employee, including the mayor, a councilman, a city controller, police officer, or judge, who provides a service beyond what is expected or required in the normal performance of his duties in exchange for the valuable. For example, a city controller who accepts money from a construction company in exchange for awarding it a contract that would otherwise go to the lowest bidder, as required, is guilty of bribery.

What Constitutes Non-Monetary Bribery?

For bribery to be charged, the valuable exchanged does not have be money. Anything that has value to the recipient, including personal favors, all expenses paid vacations, and cars, to name a few, count. To conclusively establish the charge, the valuable has to be given with the understanding that a service will be performed. Bribery is different in this regard from a gift, which is given without any expectation of a service being provided in return. It is also different from a tip that is given in recognition of good service.

Many companies offer training to decision makers and other employees to stay out of trouble. They educate workers at all levels on active bribery and passive bribery. Out of an abundance of caution, large corporations might recommend employees not give or take gifts that cost more than $5 or another nominal amount. Classes often use examples such as a foreign official or government official, but this is extended to all potential customers.

How Does Bribery Work between Private Parties?

If you talk to large corporations, anti-bribery training that includes mention of customers and other private parties has been going on for decades. The law is late to the game. The crime of bribery has recently been extended in some jurisdictions to include exchanges between private individuals. For example, a boxer who is paid to throw a fight can be found guilty of bribery. Likewise, corporate officers can be found guilty of bribery if they accept money to act in a manner inconsistent with their company’s interests.

If you witness bribery, you may even have a legal duty to report it. At the very least, many multinational companies require employees to report incidents as part of their official duties under the threat of termination.

What Should You Do If Accused of Bribery?

Prosecution of bribery has become increasingly aggressive in some forms. It could involve an employee selling a lucrative contract for a few free golf games or a vacation. It could also include more passive methods. The consequences of bribery are as diverse as the act itself. It comes with a negative connotation for many reasons.

The best way to avoid this breach of trust with your employer or other parties is to stay above reproach and avoid the appearance of corrupt practice. Even on holidays, avoid gifts worth more than a few dollars, if even that. If in doubt about if something could be seen as a violation of bribery and anti-corruption laws, bring in a second set of eyes or turn the decision over to someone else. Don’t be afraid to tell important parties what the issue is.

Most importantly, as they say, if you see something, say something. If you have reason to believe allegations of bribery, speak up and let the appropriate parties investigate. If you’re unsure and want an expert opinion, don’t be afraid to call a lawyer. For best business practices, make sure to get an attorney familiar with the laws against bribery in your jurisdiction or the jurisdiction you’re working in. Successful prosecutions can land you in a world of trouble both financially and otherwise. If you act early, you can avoid all of this.

If charged with bribery, suspecting bribery, or offered a bribe, contact an experienced criminal attorney for assistance.

Case Studies: Insurance Solutions in Bribery Cases

Case Study 1: Directors and Officers Liability Insurance for Corporate Executives, IntegrityShield Insurance

IntegrityShield Insurance offers Directors and Officers (D&O) liability insurance coverage for corporate executives who may be accused of bribery. In a case study, a high-ranking executive of a multinational company was wrongfully accused of bribery in a foreign country. The executive vigorously denied the allegations and hired legal counsel to defend their innocence.

With D&O liability insurance from IntegrityShield Insurance, the executive had coverage for legal expenses, including attorney fees, court costs, and potential settlements or judgments, ensuring they had the necessary resources to fight the false accusations and protect their reputation.

Case Study 2: Crime Insurance for Small Business Owners, ProtectSure Insurance

ProtectSure Insurance provides crime insurance coverage for small business owners who want to protect themselves against acts of bribery committed by their employees or contractors. In a case study, a small business owner discovered that one of their employees was engaged in a bribery scheme with a competitor to gain an unfair advantage in securing contracts.

The business owner immediately reported the incident to the authorities and cooperated in the investigation. With crime insurance from ProtectSure Insurance, the small business owner had coverage for financial losses resulting from the employee’s actions, including restitution to affected parties and legal defense costs if legal proceedings were initiated against the business.

Case Study 3: Professional Indemnity Insurance for Legal Counsel, TrustGuard Insurance

TrustGuard Insurance offers professional indemnity insurance coverage for lawyers and legal counsel who may be involved in bribery cases. In a case study, a lawyer was approached by a potential client who requested assistance in drafting a bribe agreement to secure a government contract.

The lawyer recognized the illegal nature of the request and promptly declined to provide any assistance. However, the potential client falsely accused the lawyer of being involved in the bribery scheme. With professional indemnity insurance from TrustGuard Insurance, the lawyer had coverage for legal defense costs and potential damages if the false accusations resulted in legal proceedings.