Legal Definitions - rake-off

A rake-off refers to a portion of money, profits, or assets that is illicitly or unfairly taken from a transaction, enterprise, or fund. It often involves an unauthorized deduction, a secret commission, a bribe, or the skimming of funds, where an individual or group diverts money for their own benefit, typically through dishonest or illegal means.

Here are some examples to illustrate this term:

• Illegal Gambling Operation: Imagine an underground gambling ring where the organizer, in addition to the standard "house cut" from each game, secretly takes an extra 10% from the winnings of certain high-stakes players before payouts are made. This additional, undisclosed percentage is a rake-off because it's an illicit share of the profits taken without the full knowledge or consent of all parties involved, enriching the organizer unfairly.

• Corrupt Procurement: A purchasing manager at a large corporation consistently approves invoices from a specific supplier for office supplies that are significantly overpriced. In return, the supplier secretly pays the manager a 15% kickback on the total value of each order. This kickback is a rake-off because it represents an illegal share of the company's funds diverted to the manager through a fraudulent scheme, inflating costs for the corporation.

• Construction Project Fraud: During a public construction project, a contractor inflates the cost of materials and labor on invoices submitted to the city. The excess funds generated by these inflated charges are then siphoned off by the contractor and a corrupt city inspector, who split the difference. This illicitly acquired money, taken from public funds, constitutes a rake-off, as it's an unauthorized and illegal share of the project budget diverted for personal gain.