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Illegal or just unethical?

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letstalk

Member
Massachusetts

I am an outside salesperson in a newspaper. In late January, our higher ups asked us to (on paper) transfer revenue from print to online, so that our online component looked higher than it actually was (note that that also reflected the transfer from one company within our organization to another within the same organization). Plus none of those requests were written, only verbal. My colleagues and I are also in a union, which is only relevant because so many of us were uncomfortable with this request that many conveyed our concern to the Guild. They went to HR who said they could do nothing and so the Guild went to the corporate headquarters of our company.

They sent their VP of Auditing to interview salespeople, managers, financial people in a period over two months. Nothing was heard until...

The VP who asked that we did these $ transfers announced last week that he had accepted another job in Iowa. His last day was Friday (yes, four days notice). He went onto a better, higher paying job, seemingly at no insistence of our company. Whatever happened, we will never know but it appears he left on his own and was not fired. Even if that was the case, or if he was fired, was not the initial request of moving dollars, not equivalent to 'cooking the books'? We are a public company and many in my group are questioning that said VP was not fired.

My question is that in a situation like this one, how can one ever really get to the truth when one's own corporation may have covered up too? As a concerned employee, when does one know enough to push an issue and when should one accept it?
 


Beth3

Senior Member
There's no way to tell if this was illegal. It depends why the revenues were transfered from one area to another for any fraudulent purpose - for example, to defraud a lending institution, financial investors, the IRS, etc. At a minimum, it certainly appears to violate GAAP (generally accepted accounting princpals) but that does not make what occurred illegal.

Perhaps the situation was already uncovered by the VP of Auditing and everything has been rectified. If the suddenly departed VP was guilty of something unethical or worse, you'll have to depend upon senior management to have handled things appropriately. No organization airs their dirty laundry to the public or even their employees. As an employee of a public company, it's not in your best interests for the public-at-large to know if some malfeasance took place.

If you're a stockholder, you certainly can go to a shareholders' meeting and raise the issue if you wish to.
 

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