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1. John Poe works for a successful tech company – “REC TECH” which is on the verge of applying for a patent on an amazing breakthrough involving computers. John tells his brother, Edgar about this and asks Edgar to have his long standing girlfriend to buy stock of REC TECH before the announcement when the stock will go sky high. They will arrange to give her over $20,000 to invest. Is there anything wrong with this? Explain your response.
2. Lawrence is employed as an accountant for a large successful public corporation and he was promoted to work in the President’s Office, (the top CEO in the company). After a few months handling the “bookwork” in his new position, he noticed some unusual and fake entries that incorrectly altered the financial statements to higher levels. He discussed this with his peers and they told him to go along with this as it would mean a higher pay for everybody. Lawrence was very disturbed by this so he reported what he discovered to the federal agency the S.E.C. and sent a copy of his report to the President of the company and to a member on the Board of Directors.
A week later the President dismissed him indicating that he was not doing his job correctly. Lawrence was quite upset and went to the company’s Human Resource Department where he was told that he was not under contract and the dismissal was permanent. He was saddened by this loss and he discussed this matter with an old friend who suggested that he go to a lawyer and his friend gave him the name of the lawyer whom he highly recommended.
In your opinion, when Lawrence meets with the lawyer and discusses the events in the last few months at the company, what actions can the lawyer take for him and what laws are involved in this matter that the attorney can use on his behalf? Be sure to mention the law and content covered in this chapter in your response.
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