EthicsQuestion 321 of 400
A loan officer discovers that a coworker is knowingly submitting falsified bank statements for clients. The most ethical and appropriate response is to:
a.Ignore it to avoid workplace conflict
b.Quietly warn the coworker but do nothing else
c.Ask the coworker for a share of the extra commissions
d.Report the misconduct through proper internal/regulatory channels
Explanation
Knowingly submitting falsified documents is fraud, and the ethical duty is to report it through appropriate internal or regulatory channels. Ignoring it enables ongoing fraud, a quiet warning fails to stop the harm, and sharing in the proceeds makes the officer a participant in the fraud.
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