I have inherited a tricky situation. A manager was caught falsifying expense statements used to treat himself and "high-performing" co-workers to sporting activities. The manager and his team are all viewed as top performers and consistently work around the clock to drive superior results. The manager apparently has had an unusual degree of autonomy, as the business he manages is non-core and not a strategic focus for executive management. It appears that the manager has been given a subtle "do what it takes to make this business profitable" edict, and executive management does not subject the manager to typical corporate reviews and controls. They look at bottom line results only, which are judged excellent.

Question - if I fire this manager and his team for fraud and theft, does he have any legal claim that the "corporate culture" allowed him the autonomy to do whatever it takes to meet his bottom line goals? What are my options?

Rita Risser replies:

There are levels and levels of problems here. First, it is a violation of Sarbanes-Oxley for the manager to submit false expense reports, and if you are aware and do nothing, you are liable as well. This law provides for jail time so it is important that you immediately move to protect yourself as well as the company. In addition, if in fact the manager explicitly was allowed to falsify expenses, then it would be a wrongful termination to fire him. The person who should be fired is the one who approved the falsification. This is also a political quagmire for you. You do not want to fire someone who is perceived as a star.

My recommendation is to report this to the Vice President of Human Resources, as well as to your own management chain. You should report in writing to protect yourself. Follow up to insure that something is done - don't assume no news is good news. And if things are that bad at your company, consider looking for another job.

Good luck.