Asked to fudge numbers?
Hi,
I work in REPE. My team's in the process of sourcing debt for an acquisition, and I prepared the IM sent to lenders.
I was asked to fudge the actual KPIs and financials of our existing assets, i.e, "rounding up" occupancy rates and revenues leading to material increases (15% increase in revenues out of nowhere and rounding up occupancy rates to 10 percentage points higher than it is). Was told that the team does this cause it's similar to "inflating achievements on your resume" and that we don't provide the banks the actual financial reports anyway.
Is this common practice, or should I start looking elsewhere? Team has good deal flow but terrible culture, so they make up for it in pay, which is why I don't want to leave. However, I don't wanna taint my resume/image.
Not in RE but in corporate PE this would be the biggest red flag
You're being asked to misrepresent historical figures? Aka you're being asked to defraud lenders? I'd refuse to do it and start looking for a new job.
Make sure you’re not in NY or else the HATER and LOSER so-called “district attorney” will come after you. Sad!
Many such cases!
PATHETIC & SAD Fat Alvin, and his cadre of CROOKS! They hate to see us winning, folks.
It’s quite unbelievable, they call him FAT ALVIN, have you heard that? Crooked FAT ALVIN.
lmao why is it always RE that's sketchy as fuck
Do not do that, leave ASAP.
Do it but start looking for other jobs asap
White collar crime is prestigious. Respect.
I find it unrealistic they'd fire you if you refuse, but it would be awkward as heck. So do whichever you think is best. But def start looking for somewhere else. And you should probably report them once you leave. Huge red flag
Definitely started looking.
This just seems like an awful idea, OP doesn't want to be the fall guy when they get caught. He needs to report it to the SEC and/or DOJ and start looking for a new job.
The SEC will not punish a junior employee after being told to do this. He has very little risk of being a 'fall guy.'
No - you have a long career ahead of you but you won’t if you do this and ever get tied back to it.
It was common practice at Enron and ilk; not so much for companies that aren't fraudulent.
Refuse to do it and document what was asked… like try to get it what they asked over email or something. If they fire you for refusing to commit fraud I’m sure that is one hell of a law suit/settlement.
Do not do this, any semi-awake debt asset manager at a bank will catch on to it.
Also, won’t you need to provide rent rolls and leases?
Apparently not. For context, I work in APAC not the US.
The Associate told me we don't disclose the actual monthly reports to counterparties unless it's our LPs or IC. Regardless, I think it's pretty stupid to send off figures that have material differences from actuals.
Tell me the name of your fund so I can block the whole firm
Why the hesitation, my good friend? I would have done it without skipping a beat 😉
Which country are you based from?
Consequatur nostrum labore dolorum accusamus in doloribus. Ipsum placeat fugit reprehenderit tenetur. Nihil nostrum corporis aperiam vitae cumque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Nemo et voluptate culpa dolorem qui laudantium voluptatem placeat. Doloremque deleniti voluptatem et rem. Nihil incidunt repudiandae vero voluptatem incidunt.