Frequent Frauds Found in Governments and Not-for-Profits

FRAUD GLOSSARY ¹

Advance Fee Fraud — Falsely obtaining an advance fee for work or services not performed.

Alford Plea — Named after the Supreme Court case that upheld the practice under which a defendant pleads guilty, although continuing to assert innocence. Such a plea may be made to obtain the benefits of a plea agreement and to avoid potentially more dire consequences, such as the death penalty, if the defendant is convicted after trial.

Anti-Kickback Act of 1986 — The provisions of this act are contained in Title 41, U.S. Code, §§ 51 -58). The act outlaws the giving or receiving of anything of value for the purpose of improperly obtaining or receiving favorable treatment in connection with U.S. government contracts.

Arbitration — Process whereby the dispute is submitted to an impartial third-person who then decides the outcome of the case, i.e., which party should win. The arbitrator acts as a judge or jury would by deciding the case on its merits. An arbitration can be either “binding” or “nonbinding.” If the arbitration is binding, then the decision of the arbitrator is final, and the parties cannot later submit their dispute to a judge or jury for determination.

Arraignment — Because of due process considerations, the defendant has to be brought before the court shortly after his arrest. He enters a plea at this time in a proceeding that is called an arraignment. He will be given notice of the charges against him, be informed of his rights, and, if applicable, bail ...