Richard Nelson and Erica Brand Portnoy write “Best Practices for Making a Referral to Law Enforcement on a Fraud Case” for InsideCounselApril 2014
Even the most vigilant of companies have become victims of discount fraud schemes or fallen prey to warranty fraud scams. When that happens, making a referral to law enforcement may be the best approach under the right circumstances. If the government pursues the case to a successful conviction, that sends the strongest deterrent message possible. Prison gets everybody’s attention. Also, it may be possible to recoup your financial losses through court-ordered restitution. The bottom line is that a criminal referral should be an arrow in your enforcement quiver, to be used in the right circumstances.