Three real cases show how engineers who refuse illegal requests protect themselves, while staying can lead to criminal risk-providing concrete steps for technical leaders facing fraud or unethical directives.
Engineers often encounter requests that cross legal or ethical lines, and the choices they make can determine whether they end up protected or facing criminal liability. The article walks through three high-profile cases-FTX's engineering director who stayed after learning about massive fraud, the Frank engineering director who refused to fabricate millions of fake customers, and a senior engineer at Pollen who executed a double-charging script at the CEO's behest. Each story highlights the immediate options available-consult a lawyer, blow the whistle, or quit-and shows the long-term consequences of each path.
In the FTX case, Nishad Singh discovered that Alameda was siphoning billions from customers. Instead of walking away, he tried to fix the problem, took a large loan, and ultimately faced a potential 75-year sentence before a plea deal reduced his penalty. The lesson is clear: once fraud is evident, staying to "fix it" is a grave error; legal counsel, whistleblowing, or immediate resignation are safer routes.
The Frank episode demonstrates the power of a firm refusal. When asked to inflate customer data to impress investors, the engineering director pushed back and only supplied the real 293,000-user list, avoiding personal liability while the founders later faced criminal charges. This shows that a decisive "no" can shield engineers from being complicit in fraud.
The Pollen incident adds a twist: a CEO directly ordered a senior engineer to double-charge customers to cover payroll. The engineer complied, later regretted it, and the case remains under investigation. The story reinforces the need to document dubious directives and consider walking away before legal risk escalates. Across all three narratives, the core insight is that technical leaders must recognize illegal requests early, evaluate their options pragmatically, and prioritize personal and organizational integrity over short-term gains.
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