[LKD CPA]

I’ve already posted about my work situation: boss is an alcoholic, doesn’t show up for weeks at a time, comes back and criticizes the business decisions that were made when he was gone…..etc.

As if things weren’t already in the crapper – today I discovered some ethical issues. In the spring we will be renewing a short term, multi-million dollar loan that is backed by a federal agency. Because the amount of the short term loan was increased this past year we are now required to have the bank audit us. The loan was granted (and has been in place for 4 years now – renewed each year) because we are a small business doing exports. Only problem is we do NOT export U.S. goods, we IMPORT goods. I explained to the owner that we are a pickle because of the requirement for a review now that we have surpassed some magical threshold and that they will discover the issue. He told me to not mention it and to essentially sweep it under the rug. He knows the loan was based on the company exporting and he flat out lied to the bank. I’m already frantically searching for a different job, but am seriously considering just submitting my resignation. Any thoughts, words of advice?

I’m thinking his life mission is to make everyone around him become an alcoholic as well.

FAR: 74, 83
REG: 76
BEC: 77
AUD: 89

[mla1169]

If you can't afford to be unemployed keep looking and stay there. Do not under any circumstances sign your own name to anything just to cover yourself (you're likely not in any position to anyway). Also don't offer any information to anybody but if asked a direct question give as short and truthful an answer as possible. Bottom line is it's your bosses issue not yours.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[rugger246]

You do not have an ethical issue…you have potential criminal issue!!! What you have just posted is an allegation that your employer has committed a criminal violation (i.e. Federal Criminal Bank Fraud, and possibly a violation against a Federal Agency). Now I do not have all the facts, but worse case scenario is your boss becomes the subject of a criminal investigation and could potentially end up in federal prison.

If I were you I would start looking for a new job. In the meantime, begin gathering information in regards to these loans and any supporting documents (i.e. e-mails, exported items sales reports (if they exist they are probably fake right???, etc.) to support what you believe to be happening. In essence begin developing a case against your employer so as to cover your butt!!! I would not put it past this guy to begin blaming others in the organization for his potential misgivings.

Once you have gathered all your evidence,I would reach out to the corporate legal counsel (internal, external) and present to them your concerns. They are in a better position to begin determining the next best course of action.

Just be aware if this turns into a criminal investigation you may become a witness or interviewed as to your understanding of what has happened. You seem to be in the best position for this as you seemed to have uncovered it.

In any case…no matter what your career is finished at this company. Begin looking for a new job and watch out for yourself!!! The best why to do that is to keep your own integrity and by no means become an accomplice to your bosses actions by trying to cover-up or mislead any auditors or bank lenders.

AUD - Passed
BEC - Passed
FAR - Passed (Perfect Score of 75 to finish it off)
REG - Passed

[Quinacridone]

I just went to a fraud seminar earlier this month where one of the presenters talked about a case she had been working on regarding fraudulent loans for a bank holding company. Essentially, they lied about what they were doing…and got caught. What was so sad is that they had a young 20-something CPA who did what he was told to do by his boss and wound up getting a criminal sentence along with the executives.

https://www.wtvy.com/home/headlines/Bankers-and-Attorney-Convicted-On-Multiple-Charges—258475041.html

Proceed with caution. I suggest that if you aren't comfortable with what you are doing, then you need to be doing something else.

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[CM]

I suggest that if you can afford to leave ASAP, leave. Today, I just encountered a fishy situation today at my current job. The COO of the company came to my office out of the blue and asked me to wire $100k to a vendor of one of our customer. I just wasn't believing what he was asking, and what he said later surprised more. He said that the vendor will return the money tomorrow. I was like 0_0. I even thought he was testing me because I'm new and I'm 26 year old rookie , but I told him that I won't do that because I don't see the reason why I should do that. This is no the first time this person would ask for weird things, but this one is a big issue. He knows that we are audited every year and I believe he knows that he wanted to do something wrong. Then the CEO came to my manager's office, and I told him what happened with the COO, and he said that we're not allowed to make any wires to people we don't owe money to. I felt a little bit better after I spoke to the CEO, but now I'm wondering if I made a mistake when I decided to accept their job offer instead of 2 other offers in other big reputable corporation. The only reason I chose this job is because the opportunity to grow is much bigger and the commute. But now, I feel just like you. I'm worried that he would still keep asking for this type of stuff, and I would not have the CEO to handle him because the CEO is barely at the office.

AUD - 80
BEC - 73
FAR - 78
REG - NINJA in Training

"Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible." Francis of Assisi

I really cannot believe BEC is giving me such a hard time.

FAR: 78 (5x)
AUD: 80 (3x)
BEC: 9/07/2016
REG: 12/06/2016

Failure is never an option.

"Faith in your own powers and confidence in your individual methods are essential to success." Roderick Stevens

[Anonymous]

I would personally talk to an Attorney on how to protect yourself. There's nothing more dangerous than a drowning person and when this alcoholic boss starts drowning, it is you he will latch onto.

If decisions were made in his absense routinely, what's to prevent him from saying that you and your coworkers tricked him into doing this loan? Simply leaving makes you more of a scapegoat, imho, because you no longer have access to documents, etc.

You need to protect yourself and quickly.

[Anonymous]

By being there and being aware and complying with the audit, I would be worried that you would end up liable in some way. I would honestly urge you to seek legal advice, regardless of whether you stay or not. In the huge scandals, people who had quit but had sufficient knowledge without saying anything were still sometimes legally liable. Of course I'm taking about HUGE things, like WorldCom and Enron, but I don't know how the laws play out at the lower end of things. It sounds like you essentially run the office when your boss is gone, if I remember your prior thread correctly; that would make an investigator consider you in a position of responsibility and thus likely of liability.

If you seek legal counsel and they advise that you'll be OK to continue working while you seek another job, then you're cool, but I wouldn't keep working without a lawyer telling me it was safe to do so, and I'd get a lawyer even if I simply resigned in case you have some “whistleblower” responsibilities and need to make a couple anonymous calls before you drop this all behind you.

Edited to add: Know, too, that you have our sympathy. No one wants to be the upright person uncovering unethical actions and it's not a fun spot to be in. I suspect all you wanted was to get a nice job that you could go bust your *** all day, make a paycheck, and come back home – having to deal with crap like this wasn't on the agenda. But since you're the person it's now fallen to, make sure you cover yourself. Not a position you'd want to be in, but since you're in it, make sure you're covered through it all.

[Anonymous]

CYA: Cover your ass

As stated above, seek legal advice now. Don't wait until tomorrow, find someone you can talk to today. This is a pretty clear cut case of fraud and the fact that you are now aware of it means that you have responsibilities. The last thing you want is to be held accountable since you are aware of the fraud but did nothing. Coming here seeking advice is a good first step, I guess, but you really need to follow up sooner than later.

I'd, strongly, consider resigning too. You're right, it's a toxic work situation and you need to get out of there. My only suggestion would be to gather some evidence to help protect yourself when the situation comes to light regarding the fraud. Be discreet about it but, again, you want to cover yourself when this mess blows up (and it will).

Finally, keep in mind that if this comes to light and you didn't behave properly, passing that last portion of the exam next year might be meaningless. If you're found complicit, they will likely not grant you the CPA license. Ethics, integrity and Acts Discreditable and all of that. It's in your best interest to get out now and seek legal advice before it really screws up your life.

[soyanks]

You can't just quit a job without another job lined up. It's more difficult to find another job when you are already unemployed.

FAR - 86
REG - 85
BEC - 90
AUD - 84

[soyanks]

You can't just quit a job without another job lined up. It's more difficult to find another job when you are already unemployed.

FAR - 86
REG - 85
BEC - 90
AUD - 84

[Anonymous]

Do everything you can to protect your chances of getting your license. You are already compliant in that you know about this situation and haven't alerted external sources about it. If this is found then your State board could very much not award you your CPA license….

If you have some money in the bank I would resign immediately. If you have good accounting experience and the education and are almost licensed you should have no problem finding a job. Ask your friends and family and see if they know of any positions opening up. I disagree that it is more difficult to find a position when you are unemployed (unless of course that unemployment gap starts to grow).

[Anonymous]

LKD CPA- get qualified counsel ASAP.

Carolina- get your resume ready. The COO is going to make your life miserable is he (or she) can brush this off. Next time report it to your manager, not the COO's boss.

[Anonymous]

@Soyanks It's easier to get a job while unemployed than it is to get a job from inside prison.

[soyanks]

@Angelwatch.

Unless the OP becomes the whistleblower and works out some kind of deal, quitting his job isn't going to change his situation. He'a already liable for what's happened. Best thing for him to do is to continue his job search, but like billbrasskey said, he needs to find a lawyer ASAP to protect himself from further trouble.

Plus, if he quits his job now and later reports the owner's misconduct to the authorities via attorney, it's basically OP's words against the owner's words. The owner may simply blame the OP. So the OP needs to stay in his job for now, while working with a lawyer/authorities. If the authorities want some kind of cooperation + evidence, it will be easier to obtain them if he has a job with his current employer.

FAR - 86
REG - 85
BEC - 90
AUD - 84

[Anonymous]

I had a friend who was in the very exact situation, my advice like he told me was : 1- Don't sign any financial reports/ Statements, 2- As other members mentioned cover your ass, and at the nearest chance leave.

[CM]

@ billbrasskey I have my resumé ready since the beginning. My manager wanted to do what the COO asked for without hesitation. Today, I spoke to the CEO, whom is the big boss and founder of the company, and clarified that I wasn't conformable working with the COO, and he told me to tell the COO that we get audited by E&Y and that if he has any issues that he should speak to the board of directors.

@LKD CPA I forgot to also recommend you to seek legal advise. That happened to me once (it was a smaller case), so what I did was the following. I first spoke to the upper level management. Then I contacted a lawyer. I gathered all the information that I could (it took me 1 month), then I went to the proper authority and I filed a claim. That same day I resign. I was unemployment for about a year, but at the end it was all worth it. The investigation got closed in 2 years and I even served as a whistle-blower and the person got what he deserved and the company had too pay big fines for not doing anything when I presented the case.

AUD - 80
BEC - 73
FAR - 78
REG - NINJA in Training

"Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible." Francis of Assisi

I really cannot believe BEC is giving me such a hard time.

FAR: 78 (5x)
AUD: 80 (3x)
BEC: 9/07/2016
REG: 12/06/2016

Failure is never an option.

"Faith in your own powers and confidence in your individual methods are essential to success." Roderick Stevens

[Author]

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