Inconsistent Witnesses and a Client Demand to Overstate an Admission
You are investigating a $240 petty-cash shortage at an Albuquerque nonprofit. You interview three employees with consent and record audio. Employee A says she saw Employee B take cash from the box on Tuesday. Employee B says she was at lunch from 12:00 to 12:45; the time clock shows she clocked out at 12:05 and back at 12:40. Employee C first says B was with her, then recants and says she 'doesn't want to be involved.' In B's interview, B says, 'I messed up. I took $20 for gas and meant to pay it back Friday.' The client's executive director emails: 'Write that B admitted stealing $240. Leave out the $20 and the recantation-it confuses the board. Bill 8 hours even though you spent 5.5; we'll approve it.'
1. How should the report characterize B's statement and the conflicting evidence?
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Quote B exactly: 'I messed up. I took $20 for gas and meant to pay it back Friday.' That is an admission to taking $20, not $240. The report should also include A's accusation, the time-clock records showing 12:05 out and 12:40 in, and C's initial statement and recantation. Do not resolve the conflict by choosing the strongest fact. Use headings such as 'What I observed,' 'What witnesses said,' 'Documents reviewed,' 'Inconsistencies,' and 'Limitations.' Label hearsay as hearsay. State that B did not admit taking $240. This gives the board an accurate basis and protects you from a false-report claim.
2. What should you do about the billing instruction and the demand to leave out evidence?
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Bill the actual 5.5 hours, not 8. Inflating time is false billing and can constitute fraud; the client's approval does not make it lawful. Reply in writing that you can only invoice actual time and that you will provide a detailed time log. If the client wants a budget for additional work, provide a new estimate. Do not alter the report to say B admitted $240. If the executive director insists on both the false statement and false billing, decline and consider withdrawing; return any unearned fee. Document the request and your refusal. This is a client-relations problem, but the license and integrity come first.
3. What should the final report contain, and how should records be retained?
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Use a factual chronology, source list, and exhibit index. Attach the time-clock record, recorded-interview logs, and witness statements. Identify each person by role, not by conclusion. State the limits of your investigation, such as no forensic cash audit and no access to the cash box. Retain notes, recordings, and drafts under a written retention policy; do not destroy them while litigation or a board complaint is possible. Store confidential files securely and release only to authorized client representatives. Do not include unrelated employee information. If subpoenaed, produce what is required and notify the client unless legally barred.