When a person uses force or fear to demand money for a business decision, they are committing which type of fraud?

The act of using force or fear to demand money in relation to a business decision falls under economic extortion. This type of fraud involves coercing someone into providing money or benefits through threats or intimidation. In the context of a business environment, this could mean threatening a business associate or employee to obtain funds or advantages, thereby disrupting fair financial practices and ethical standards.

Economic extortion is characterized by the use of pressure tactics that can manipulate the victim into acquiescing to demands they normally would not agree to, particularly when it involves financial transactions. It is important to differentiate it from other fraudulent activities. For example, a kickback scheme typically involves paying someone for securing business or services, operating under a different paradigm of collusion rather than coercion. Bribery involves offering something of value to gain an influence or favor from an official or decision-maker, which again contrasts with the coercive tactics used in extortion. An illegal gratuity scheme involves giving something to influence future actions, which does not involve the immediate threat or pressure that characterizes economic extortion.

Thus, the unique component of force or fear in demanding money is what distinctly categorizes this scenario as economic extortion.