I work for a financial institution which has a hotline available to raise any issues that may be seen as unethical or cause undue risk to the org. I don't fully know the actual mechanics but my brothers friend who is on the retail side had approached him about a lucrative operation he has set up, asking my brother (and other clients) for money and promises 10% return. I speculate that he is using these funds and loaning to either high risk borrowers or ppl that can't get a loan to buy a house (foreigners with no credit history). This was a few months back and I told my bro to decline his offer and to not ask again. But seeing he is a close friend of my bro, about to get married and had a sad childhood, I didn't do anything. Now I hear it has progressed a step further - "using the bank's own money" was what was said...probably now getting people to take out bank loans and then relending those funds to the same type of people above and collecting the spread.
What to do? I have a strong sense of loyalty and duty to safeguard assets or reputation of the firm but I also don't want to be the snitch and end someones career, after all the borrowers could just be legit and able to pay back in which case no real harm done if nobody finds out. Im all for the entrepreneurial spirit if he did this outside the confines of work, but thAt line is crossed the second he a) is representing our firm or b) he engages firm clients. Whistleblow or no? Am I making a big thing out of nothing?
What to do? I have a strong sense of loyalty and duty to safeguard assets or reputation of the firm but I also don't want to be the snitch and end someones career, after all the borrowers could just be legit and able to pay back in which case no real harm done if nobody finds out. Im all for the entrepreneurial spirit if he did this outside the confines of work, but thAt line is crossed the second he a) is representing our firm or b) he engages firm clients. Whistleblow or no? Am I making a big thing out of nothing?