Legal Question in Administrative Law in Ohio

Re: Employee liability

It would be most pertinent to know your job title, description and credentials. If you are in management, or have an audit capacity, or CPA credentials, you would have an enhanced level of responsibility. If, as I presume, you are in a clerical or bookeeping position your duties are as defined in your job description, or employer's practices, unless you have actual knowledge of a violation of the criminal law. Your fact pattern does not conclusively establish the violation of criminal law. It is possible that the "phantom employee" is perfoming confidential services of an investigatory, or audit, or security nature, and that you are not in the "need-to-know" loop. It may be that the suspect employee is performing some informal consulting wokr for your company, which benefits the other company you have been directed to seek reimbursement from. Unless you have contrary conclusive proof, or some prior determination of the impropriety of such practices, I believe you are best advised to follow your employer's instructions. If there is an internal procedure or protocol for expressing and documenting concerns you may wish to consider availing yourself of same, being cautious not to suggest illegality without proof.