Transcontinental Inc T.TCL.A

For discussion: Assisting in commission of a fraud?

[PitchinPennies]

Hello, Tranny investors and board-followers. I've got a question for you that came up on another Stockhouse board.

Let's say you are the exclusive printing supplier to a national newspaper publisher. Let's say the publisher is claiming distribution of a specific quantity of copies -- for the sake of argument, make it 76,000. The publisher is charging advertisers based on that circulation quantity.

However, let us imagine that you as a supplier are well aware of the actual number of copies the publisher is ordering for each issue. And let us imagine that the actual number you're printing is a darned site fewer than advertisers are being encouraged to believe... by a very large multiple.

Here's something to consider. What are your obligations to (a) company shareholders; (b) law enforcement, when it comes to making known this hypothetical mismatch?

Replies invited.

[baskcha1]

the supplier is not responsible for the communications from another company. 

[PitchinPennies]

No, no. You've misunderstood my question, @baskcha1. We're not talking about content reproduced and manufactured by Transcontinental on behalf of a client. What we're discussing is a potential fraud, where the client reduces their ususal print-run from 76,000 to 1,000, instructs the printer to just send 50 copies to the client's office, and please recycle the rest, Marcel. What I&