The extortion definition in fraud cases
An extortion definition is often the other side of a bribery case. Extortion meaning is defined as the obtaining of property from another, with the other party’s consent induced by wrongful use of actual or threatened force or fear. Economic extortion definition is present when an employee or official, through the wrongful use of actual or threatened force or fear, demands money or some other consideration to make a particular business decision. That is, economic extortion definition cases are the "Pay up or else" corruption schemes.
To constitute what does extortion mean, the threat must be the controlling reason that the victim gives up a right or property. The following types of threats can constitute extortion definition:
- Physical harm;
- Property damage;
- Accusing a person of a crime;
- Disgracing a person;
- Public exposure
Accordingly, a demand for a bribe or kickback, coupled with a threat of adverse action if the payment is not paid, might constitute examples of extortion definition. In any situation where an employee might accept bribes to favour a particular company or person, the situation could be reversed to a point where the employee extorts money from a potential purchaser or supplier.
To understand what does extortion mean, this is one of examples of extortion:
A plant manager for a utility company started his own business on the side. The manager forced vendors who wanted to do work for the utility company to divert some of their business to his own company. Those that did not “play ball” lost their business with the utility.