Monday, May 30, 2011
I recently read an article about procedures for encouraging employees that work for companies actively engaging in fraud to blow the whistle. Rather unsurprisingly, the two Republicans voted to require the employees to notify their bosses prior to any contact with the authorities. This would give the company the opportunity to fire the "troublemaker" and then say that he was just making the accusations because he was a disgruntled ex-worker. Fortunately, the two Democrats and one Independent did not go along with that. Securities fraud does not happen by accident. It is done deliberately. And confronting a powerful criminal before notifying the authorities is foolish.