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Texas Gold had planned to finance the expansion through a sale of securities, but market conditions were unfavorable for such a sale. A management meeting comprised of the president and vice presidents for accounting, finance and marketing was called to discuss alternative means of financing the project. It was decided that Texas Gold would attempt to secure a loan from Federal First, a federally insured bank. The vice president for finance expressed concern that the loan application would be denied because of stagnant sales over the last 24 months. Texas Gold was convinced that the expansion would be a success and that the loan would be repaid. Consequently, it was decided that the sales would be over stated by 35 percent in the financial statements provided to Federal First. After the meeting, the vice president of accounting adjusted the financial statements and provided the statements to Federal First. During the investigation by the FBI the vice president for finance directed that all of the minutes and any documents related to the loan be either destroyed or not turned over to investigators. The president and the vice president for marketing then contacted their local congressman, to whom the individual officers made significant campaign contributions, requesting that he intervene in the investigation. They both promised that he would receive a sizeable donation to his campaign. Has Texas Gold, the participants in the management meeting or any of the officers individually commit crime?
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