National Report Kickback Fraud Day – September 18, 2026

History of National Report Kickback Fraud Day

While the history of fraud dates back to the beginning of economic transactions, kickback fraud became prevalent in the 20th Century. One of the most common types of government corruption is kickback.

When Congress realized that employers during the Great Depression were plotting to avoid wage standards in federal contracts, it created the first anti-kickback statute, the “Copeland Act”, in 1931. The statute, which is still in effect, prevents major infrastructure contractors from compelling their employees to ‘kickback’ or return any portion of the wages to which they are due under their employment contracts.

The Medicare and Medicaid programs, which were established in 1965, provided health insurance to millions of Americans. The programs’ huge wallets and faulty reimbursement processes quickly led to fraud, waste, and abuse. More patients equated to an increase in claims, which in turn increased revenue for medical service providers. Congress created the Anti-Kickback Statute in 1972 in an effort to guarantee that only necessary commodities and services were provided to Medicare and Medicaid users.

Despite the Anti-kickback law’s broad scope, its disciplinary power was constrained, making it less effective as an enforcement instrument. Congress changed the law in 1977, making kickback offenses punishable by up to five years in jail. Additionally, it extended the text of the law to prohibit ‘any compensation’ offered in exchange for referrals.

The 21st Century brought a sharper spotlight on the repercussions of kickback fraud on the government and the general public. These worries prompted Joel D. Hesch, founder of The Hesch Firm, to establish a kickback fraud awareness day and launch a campaign to assist the government in combating the rise in kickback fraud.