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You are employed by a company that, among other things, does life settlements. A life settlement company buys whole life insurance policies from insureds for

You are employed by a company that, among other things, does life settlements. A life settlement company buys whole life insurance policies from insureds for more than the cash surrender value but much less than the death benefit payable. You are in the production area for this line of business. There are others in this area as well. All of you report to Mr. Slick. Mr. Slick recently came with the company. Mr. Slick tells only you that he has a particularly good friend who is getting information concerning a group of potential life settlement customers who it turns out are all senior citizens in the various stages of terminal illnesses. Mr. Slick tells you to deal directly with his friend. You start dealing with Mr. Slick's friend. You receive this information (including medical information) and wonder this person got this information. This person also starts to send you valuable gifts such as a Rolex watch and fine wine. You know that medical information is highly confidential and covered by the Health Insurance Portability and Accountability Act and regulations (HIPAA). HIPAA has penalties for certain violations of fines up to $100,000 and up to 5 years in prison. Additionally, offenses committed, with the intent to sell, transfer or use individually identifiable health information for commercial advantage or personal gain, provide fines of up to $250,000 and imprisonment of up to 10 years. Your company is experiencing loss of revenue and desperately needs more revenue. There is a push from senior management to increase revenue. All performance reviews, raises, promotions and bonuses will be tied to this. You are 55 years old. Mr. Slick is a lot younger than you and so are all his other direct reports. Mr. Slick has been coming down on your harder than his other direct reports. Mr. Slick has said some of your work is not up to par for very vague and subjective reasons. You are worried about your job. The company has a code of ethics, a policy against conflicts of interest as well as discrimination and all legal and ethical violations are to be reported to the Chief Compliance Officer. The Chief Compliance Officer reports directly to the CEO and is extremely close to Mr. Slick and the CEO. Please discuss the legal and ethical issues with this scenario and what actions you would take in this situation.

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