What would you do if you found out your company is doing something illegal?

Mod (Andy) edit: Brings up lots of questions... Would you report it no matter what or would it depend on the seriousness of the crime? If you did report it, would you feel like a snitch / traitor & would you be fearful for your job? Have you experienced this in the past? Would you ever consider blackmailing the person(s)? How much illegal activity does go on these days?

 

If you saw this first hand, you need to report it to compliance IN WRITING and make sure you have a copy of everything related to the matter to protect yourself in case FINRA bring holy hell down on you. Or if your firm is real shady, they can try to blame it on you. In either case, if you have the documents in writing, you are protected.

If it is something you heard, don't go around and stick your nose in other people's business though. That could not end well for you.

 
Best Response
Whiskey5:
If you saw this first hand, you need to report it to compliance IN WRITING and make sure you have a copy of everything related to the matter to protect yourself in case FINRA bring holy hell down on you. Or if your firm is real shady, they can try to blame it on you. In either case, if you have the documents in writing, you are protected.

If it is something you heard, don't go around and stick your nose in other people's business though. That could not end well for you.

I don't know if this helps, but I remember reading Robert Baer's book See No Evil - he was going through how he'd avoided being caught up in the Iran-Contra affair. He basically circulated the info to everyone internally - and had it on paper. I don't think compliance is enough, if it's the case that you could be seen as an accomplice if this thing gets out. But that's the CIA...

I wonder if you could just come up to your boss and be like, "hey, can I get vacation time until you guys are done doing what you're doing?" They would probably make you a scapegoat though...

Two golden rules: Never rat on your friends. And always keep your mouth shut.

 

Depends on how illegal we were talking. I could foresee a couple of possibilities:

  1. If the illegal shit is small time/constrained to one person, and is not systemic, then report to compliance or SEC as applicable.
  2. If there isn't the will in the company/evidence to actually get a conviction or sentence/punishment for the person, blackmail them in to stopping (anonymously) or become a source to something like the NYT or WSJ.
  3. If it is systemic, get proof if possible, change companies, then report to SEC and/or NYT/WSJ etc.

Big thing though is not letting anyone know its you that is ratting them out.

“...all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Schopenhauer
 
WalMartShopper:
Cash in on whistleblower statutes nigga...snitches get paid!

He would get blackmailed by the industry and corporate America.

Depending on the case, the SEC might charge him.

Power and Money do not change men; they only unmask them
 
FlakieBear:
WalMartShopper:
Cash in on whistleblower statutes nigga...snitches get paid!

He would get blackmailed by the industry and corporate America.

Depending on the case, the SEC might charge him.

Oh noes, blackballed. That's bullshit. First of all, qui tam on a major case results in having enough money to say 'fuck you industry/corporate America." Second of all, who the hell would work for a company they have loss enough respect for to report them? Third of all, you become an instant celeb to others and a martyr of morality that wouldn't have a problem starting your own consulting gig/company/whatever the hell you feel like doing with your millions.

If the glove don't fit, you must acquit!
 

The answer is really depends on what the offense is, whether you have actual proof and how it relates to you and your daily function. I'm not going to be the one to say report it blindly nor will I be the one to say get in on the action. The truth is that it really depends on overall nature of what is being done and whether you can prove it beyond a reasonable doubt. Hearsay is not admissible as proof for a crime and you will need to substantiate your facts if you are going to make a whistle blower claim.

 

as someone who has been in your shoes, you must report it to compliance.

Say nothing to anyone else.

Obtain in writing from compliance that you have done all you need to do.

Wash hands of it.

If still continues, go to regulator if dubious practises, WITH evidence NOT suspicions.

Call the anonymous lines that are provided for questions and answers specific to your case.

 

In addition to compliance, keeping a written record, you might want to consult your personal lawyer and look for another job/changing firms if you think what they're doing is significant or if senior guys are involved (its likely that they have other dodgy dealings that you don't know about).

Your reputation is your biggest asset in this industry. Look after it.

 

The above are good ideas. In the past I just kept my head down, kept my nose clean, and looked for the next gig: if a place is breaking the law on a serious level, it's likely a sinking ship / time bomb and you're better off jumping sooner rather than later. You might want to also realize that many minor / BS rules get 'bent' in the real world, and it's not just finance it's EVERY industry, so think things through.

Get busy living
 

Well, illegal is illegal and the right thing to do is to always report it but there are times when it is just best to stay quiet and then look for another place to further your career.

all about something illegal that your company is doing may always be the right thing to do when you can just go work somewhere else.
 

Sint amet necessitatibus vero odio asperiores ut. Et qui ut voluptatem eum.

Power and Money do not change men; they only unmask them

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