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Generally speaking, altering your statistics to report to regulators will open you up to a lot of potential legal trouble as the regulators might well decide to
by elemeno 11y ago
Generally speaking, altering your statistics to report to regulators will open you up to a lot of potential legal trouble as the regulators might well decide to take the view that you're deliberately giving them misleading information.
If you need to massage the date to represent what you believe to be a realistic view of your data then you still need to start off with your 'bad' data and explain why you don't believe it's representative and present your arguments for altering your data along with your 'clean' dataset. That way you can't be accused of misleading regulators and you'll have best opportunity to present your arguments for why your initial dataset is 'wrong'.
Your fiduciary duty to shareholders almost certainly includes not making yourself liable to having legal action taken against you by the government.
- true_religion 11y agoIf regulators are investigating your business, they are already 'taking legal action' against you. Now regulators can and in many cases often choose to believe that companies act in good faith when they clean up their data profile before handing it to investigators. Without clear data, regulators can also assume that a company is trying to obscure the truth by throwing everything and the kitchen sink into a data set while internally only using a subset of the data because it knows X part is patently false.
- ccarter84 11y agoWhile investigations generally could precede legal action, they don't always lead to it. An individual could be investigated for a serious crime and later be ruled out by said investigators as new evidence comes to light. That being said, this should lead to legal action by NYC.