> compartmentalizing the org structure so that it removes the manager from liability and shifts the blame to a fall-guy is a common theme in organized crime. It

> compartmentalizing the org structure so that it removes the manager from liability and shifts the blame to a fall-guy is a common theme in organized crime. It is also illegal. There is nothing necessarily "illegal" about an org compartmentalizing information. What is illegal is fraud... one person in an org saying one thing, while others in the same org know that the thing is not true. The other problem with overly compartmentalizing information is not related to legal liability at all: if managers don't know what's going on, good or bad, they can't be trusted by shareholders, which can kill the stock price. Shareholders generally prefer known challenges than unknown ones.