A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment.
A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment.
Fraud can be committed internally and externally from the organisation by its employees,manager,customer,suppliers or other parties. Any Fraud jeopardize any organisation and economy condition of society.
Above Stated Fraud Scheme is an example of Economics Extortion. Which is opposite of bribery.
Here, Council Health Inspector uses its position to threaten restaurant owner by issuing a fake health violation notice and demanding money.
Such Fraud is hard to detect because of no evidence or records. To control economic Extortion, Restaurant owner should take legal action against the health Inspector. Society should encourage others to not entertain any extortion.
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