Example of a kickback

Mortgage broker Johnson is referred business by her real estate agent friend Jackson.  Johnson promises to give $300 to agent Jackson once she closes the loan.  This is an example of:

  1. a legal referral fee
  2. an illegal kickback
  3. a legal kickback
  4. a legal referral fee as long Jackson pays taxes on the $300

The answer is B.  This is a kickback and is illegal.