Soft Dollar Fraud: Diversion of Funds from a Directed Brokerage Account

Some cash has become a lot more pliant in the last few years. Politicians frequently discuss “soft dollars” – money donated to political parties rather than candidates but nevertheless used to benefit those candidates or causes indirectly. While political soft dollars technically may be legal, their reputation is questionable.

Soft dollars also exist in the business world. Examples include free tickets awarded through airlines’ frequent flier programs, points given by medical device suppliers toward free training programs in exotic locations or on cruise ships to healthcare professionals who prescribe the suppliers’ products, and points from national suppliers for retail store owners who feature the suppliers’ items.

These examples have certain common denominators. Soft dollars: