Daniela, a plant manager, threatened to withhold business from any vendors unless they hired her side cleaning business. This best describes which type of corruption scheme?

• A. Illegal gratuity scheme
• B. Economic extortion scheme
• C. Collusion scheme
• D. Kickback scheme

Answer: (B)

The scenario shows someone using threats of economic harm to obtain a personal business advantage. That is economic extortion: leveraging the power to withhold business to force vendors into hiring her side cleaning business.

This isn’t a kickback, since no payment or gift is exchanged in return for the contract. It isn’t illegal gratuity, which involves gifts or favors given to influence a decision after it’s been made. It isn’t collusion, which would involve parties secretly working together to rig bids. The coercive demand to gain business aligns with economic extortion.