Fraud: What Starts Small Can Snowball

The situation is vexing. You are a mid-level financial manager at a company, and you're attending a meeting with Wall Street analysts. Your boss — who just happens to be the company's chief financial officer — brilliantly reels off an array of statistics projecting a rosy picture of growth in revenues and net earnings. Too bad that the numbers are inflated and untrue.

Suddenly and without warning, the CFO looks over at you and demands corroboration. “Isn't that correct?” he demands.