It was too risky. My boss was scummy and even though I had documentation about my hours being edited he would have fought it and we'd go to court and at that point it'd be a crap shoot. If I remember right, the prison time was five years and there is no parole with federal sentences.
To prevent this situation the peons should be given the benefit of the doubt by the courts.
In this case, either (1) the peon was lying about reported hours, the boss didn't notice, and then the peon reported himself... or (2) everything happened just like you said.
Aren't there bounties for reporting things like this? At the very least winning should include reimbursement for legal expenses.
All your going to end up with this type of cases is:
* Years of stress
* Years of financial losses because lawyers are not cheap. And no matter how well you are innocent, not having a lawyer is guaranteed that you will fail.
* Years of time wasting.
And for what? The government maybe sentencing a guy for fraud. When its like 90%+ he will strike a sweetheart deal with the prosecutor.
Even worse in a case like this where its almost your word vs the boss his word. Yea, you can be the guy that ends up living under a bridge while the CEO laughs his way to the bank, being able to pin it on you.
Its already difficult with some proof... Dealing with this type of fraud case reporting, is easier when your not in the spotlight of the crime, and then reporting it. But if your unwilling part of it, few people want their neck on the line.
They do get the benefit of the doubt, but when you're a defendant in a criminal trial, simply having the benefit of the doubt on your side will not mean that you're going to have a great experience with it.