Management request to inflate hours

Question

1. I work as a software engineering manager for a global company, with many thousands of employees, that provides project work to clients
2. We have an internal cost for our software engineers
3. This internal rate has recently been increased
4. We have a contract with a customer to provide software engineering, almost exlusively as fixed priced projects, at $xxx per hour
5. Manager has asked me to artificially inflate any future quotes to this customer, during the lifetime of the existing contract, to ensure the profit margin is maintained post increase of internal rates
6. This request came via our direct MS Teams chat which I have taken a screenshot of
7. I explained to my manager how the quotes are generated, e.g. xxx hours plus some % contingency. I did not agree to any artificial inflation of estimates and didn't even acknowledge the request
8. My boss is in the US, I am in the UK. Not sure if this is relevant or if there could be some cultural difference.

I am vehemently against the suggestion as I value my professional integrity and the trust I have developed over many years with the clients I work with.

I'm unsure on the next steps. Do I ignore the suggestion until it's next raised, do I approach my manager directly (I don't have direct access, point 8) with my concerns or do I approach HR?

Any advice would be greatly appreciated.

Thanks

Answer 1

I don't think this is really a question for HR. This is a question for your companies legal team.

If they give the green light, you may want to consider getting personal independent legal advice.

Regarding the legal aspect, and the personal risk vs company risk, that's probably best answered by Law SE. But in my (non-legal) opinion:

It's probably not likely to be considered fraud, unless you get a commission from the sale.

More likely it's going to be breach of contract. If the company charges for hours worked, and less hours worked are delivered, that's a civil matter.

Answer 2

If instead of calling it "inflating hours" you call it what it actually is, which is fraud, your answer should be more clear.

Now, since Boss is in the US, and you are in the UK, not only is it fraud, it is international fraud and the laws of both countries may come into play, as well as any local jurisdictions, such as the state that Boss is in, or if there are any local laws you may be violating as well.

Your company could get hit by the IRS, The UK's equivalent, the US RICO laws, falsification of documents, in short a big mess.

Take your screenshot, and see a solicitor, and get his opinion. This is illegal, do not do it.

Answer 3

In some organisation you can have access to a "anonymous" misconduct reporting system. Those systems are often present in big corporation and meant to signal any conflict of interest or in your case, fraud. If you want to act on this situation I suggest to use it.

However be sure to confirm with your manager, by teams or email, what he really meant.