One of the most vulnerable times for any Georgia company that creates a product is during the development of the product before it is released. If someone either from within the company or outside of it releases a similar product first, it could cost a company a substantial amount of money. This scenario led to a company based in another state to file a fraud and breach of contract lawsuit against one of its former employees.
Technological advances in recent years mean that nearly every business in Georgia relies on computers as a vital component of their day-to-day operations. Employees are given varying levels of access, depending on their job duties and need to know. It stands to reason that ensuring that a company's computer system remains secure is crucial. However, as large corporations like Target have discovered, abuse and fraud are not always easy to prevent and can cause substantial financial losses.
Ordinarily, the directors of a Georgia corporation are protected from liability in a dispute. However, under certain circumstances, director liability is unavoidable. In those instances, plaintiffs in lawsuits can "pierce the corporate veil" and may receive restitution directly from a company's directors.
Patients and physicians around the country, including in Georgia, rely on pharmaceutical companies to market their products for the uses for which they are approved by the Food and Drug Administration and nothing else. When a company markets a product for what is called an "off label" use, unintended consequences and side effects can occur. This type of marketing is said to perpetrate a fraud on both physicians prescribing the medication and the patients taking it.
Most everyone in Georgia has received inquiries regarding add-on products from their credit card company. Two of Bank of America's add-on products were identity theft protection and credit protection. Recently, Bank of America settled with federal regulators over allegations of fraud regarding these products.
Narconon, a Georgia drug treatment clinic, is facing serious charges of insurance fraud. The Norcross, Georgia center was recently raided under various search warrants, with documents and other items being seized by police. It is suspected that the total fraud being alleged in this case amounts to approximately $3 million. The treatment clinic could find itself facing civil lawsuits in addition to the current fraud investigation that appears to be ongoing.
An Atlanta-area construction management company is claiming victory in the outcome of a court's decision regarding its business litigation with the DeKalb County School District. At the same time, the school district is saying the 5-year-old fight is far from over.
Atlanta corporations should be on the lookout for solicitations from firms offering to complete corporate minutes for a fee. According to Secretary of State Brian Kemp, a firm called Compliance Services is one that poses a potential threat for Georgia corporations. Kemp urges corporations to be diligent in assessing such solicitations, noting that they may lead to fraud and identity theft.
Fraudulent crimes involving corporate identity theft are uncommon, and are not a feasible venture by the at-fault party. Eventually their endeavors will be uncovered, either by the company itself or by law enforcement. Having the proper security measures for your business and implementing the necessary protocols will protect your interests, as well as the assets of your organization.
A sprawling case of alleged fraud, breach of contract, accusations and counter-accusations now ties Nevada in the West to our very own Georgia. A property-management company is at the eye of the storm, having been accused of a raft of commercial malpractices, including fraud. Many of the victims involved, who were allegedly defrauded of considerable sums, including their life savings, are recent immigrants to our country.