So why exactly did Tazo (The incompetent president of the company responsible for the security breach) mention "police" and "legal consequences" in his conversa

So why exactly did Tazo (The incompetent president of the company responsible for the security breach) mention "police" and "legal consequences" in his conversation if he wasn't making a threat. If you are going to be a lying asshole and deny something, do yourself a favor and deny it outright. Don't try to imply that you were just having a friendly conversation about "legal consequences" right before you solicit someone to sign a non-disclosure agreement. No one in the world will believe you weren't trying to intimidate this poor kid into compliance.