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How can this person improve their situation?

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  This is the problem the employee is having:  
 
 
 
The controller of my employer is using the company's credit card for personal charges that currently total $7,000. The bulk of these charges go back a year. When asked by a subordinate to repay, the Controller advised that more than half had already been repaid but could never produce a receipt. The owner of the company is not aware of this and we cannot report it due to this person's close affiliation with the family on a personal level. Any effort to remedy this would backfire, especially since she's managed to convince the boss there is a conspiracy aimed at her. (When she was hired she upset the majority of co-workers by overstepping boundaries and even professional engineers took the problems to the boss who defended her and continues to do so, no matter the circumstances.) The accounting records have also been manipulated to misrepresent future, anticipated, income. The boss IS aware of this fraudulent report provided to the bank to support the continuation of a credit line, but allows it. I'm on the caboose of the retirement train and can't risk termination that could result from reporting this. By the same token, I don't want to risk legal repercussions. The controller is a "bully" and has let us know that nothing gets back to the owner. All this has made me a nervous wreck. Are there any govt. agencies that could set up a "random" audit?  
 

 

  Please suggest some advice for this employee:  
 


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