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What can you do if your company is asking employees to commit fraud?

What action can you take if your employer asks you to commit fraud by signing documents that a customer should sign. All of the managers were put on finals by corporate but what can the employees do.


Lisa Lopez
Title: sales
Company: na
(sales, na) |
Anthony Cantor
Title: Manager
Company: Wipfli, LLP
(Manager, Wipfli, LLP) |

We need to remember that companies do not commit fraud, people do. If people at your company are asking seriously asking you to commit fraud then: a) resign immediately, b) go above those employees and whistle-blow or c) challenge your employer to do the right thing with the understanding that if they don't you will do a or b with extreme prejudice. Doing anything else makes you complicit in the fraud should it be perpetrated. Punting the problem to someone else makes you just unethical as signing yourself. Note that doing either a or b will most likely lead to an immediate setback in your career. Despite the purported heroism surrounding whistle-blowers, they more often than not, by a large margin, do not fare well especially compared to those perpetrating the fraud. This makes it a precarious situation to be in as you consider your integrity and reputation vs. your survival. In the end you decide on the intrinsic value of your righteousness with the understanding that the extrinsic value of your righteousness may not be as high as you would like it to be. If you do choose to do c do not waive it in front of your employer like the hammer of Thor until you have all the ducks lined up to minimize the hit you will most likely take to your reputation, wallet, and personal comfort.

Barry Zalma
Title: Consultant and Expert Witness
Company: Zalma Insurance Consultants
(Consultant and Expert Witness, Zalma Insurance Consultants) |

First, submit your resignation. Second report the fact to the local prosecutor.

Fraud, no matter how small, is a criminal act.

(Accountant / Bookkeeper) |

Resign, yes. Disclosure might result in violation of non-disclosure agreements and result in the individual being sued for damages incurred by the disclosing employee. That is what I was told by a large law firm specializing in labor law in Houston.

Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

Check your state for Whistleblower laws..


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