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Not a good idea, I'm afraid...

... as the "they" you are referring to are "outsiders" and not company personnel. If "they" were to "discover it for themselves" the likelihood is that the relationship between the company and "they" will be damaged via a loss of trust/credibility and, there's also no guarantee that "they" won't discuss the problem with others.

Nope - this is a situation that must be dealt with internally in order to exercise some form of "damage control".

The other problem for scm if he were to do nothing, would be the "awkwardness" he would experience in any future dealings with this "they" group.

Legally, the company would be liable for the actions of any employee indulging in fraudulent billing - even though he no longer works there - they, in turn, would still have recourse against the culprit.

The company, in "owning up" and by making full restitution to the client, will still be at some legal risk - as restitution does not mitigate the legal risk - but, if handled correctly with the client, should see the issue put to bed.

Never underestimate the impact of "inter-client dialogue" - it has sunk many a company before. Bad news travels at the speed of light!

DevillEars


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