If you found out your Leader or Immediate Supervisor was doing something against the law, like fraud, what would you do?

I was a buck sergeant in a Trans Group S-3 coordinating heavy lift road assets in the FRG. My wife was the Supply Sergeant for the Group HHC. My commander, a Col., directed me to fix the books so armor units would not have TDY costs. Without going into details, I would have to illegally misuse funds appropriated by Congress. The amounts were negligible, less than $200 each time, but all directions were verbal passed through the S-3, a Major. I told the Major I could not do it legally and he told me that the Col did not care. When an armor unit cancelled our lift, which would have only cost minimal TDY, and moved the equipment by German rail for a cost exceeding two hundred thousand dollars, I was called before the Colonel’s morning Staff Meeting. In front of all the staff officers in the Group Command he threatened me with everything from reduction in rank to Leavenworth. I was the only enlisted man in the room. He personally directed me to bury the costs and never to disobey him again. I stood mute and did not answer when he asked if I understood. He told me to get out of his sight.
I thought I was going to be relieved and court-martialed. But if I broke the law for little things, what would be the next direction. Late in the afternoon I was ordered to report to the Colonel’s office. The civilian Comptroller for the Group was there with the Colonel. The Comptroller told me that after a review of the situation, the Colonel decided that my actions were correct and that I was to continue following the regulations. The Comptroller cautioned me to keep the whole affair to myself, including my wife. The Colonel nodded and I was dismissed.
After my wife and I rotated back stateside, I told her about my experience and she laughed. It appeared that at a later date, the Colonel had directed her to sign off on supply forms that were false and she refused. He got angry, but did not threaten her. I believe he was glad when we left his command. We heard later that he was allowed to retire after he had some line haul drivers smuggle his personal weapons into the FRG after he purchased them in Belgium.

WELL THEY TAKE MONEY AND NOW OUT OFF DUTY MAKE FACTURE NO GOOD!!!!

Report to Base Commander & Inspector General

Been there done that a few times. Simple; Take the hard right over the easy wrong and report it. If you know about it and dont report it you are complicit in the crime and may actually find yourself in trouble. Is your career and freedom worth losing because of someone elsea criminality. Doing g the right thing no matter how hard it is, is the right thing to do.

You have to do the right thing and report do the proper authorities as required. I would start with OIG and report it.

The Capt in charge was doing a lot of questionable activity. I reported it and he was discharged as a result. But before he left he wrote me up and I was denied a Good Conduct medal. Which cost me a promotion to Buck Sgt. So I didn't reenlist I had planned to be a career soldier but...

Why isn't this as simple as call the Provost Marshal or Army investigations unit?

I'm being sued by a lawyer that stole $12.500.00 from the labor organization I belong to now. This has been going on for almost three years now. A few people including me discovered the Treasurer of our labor organization was robbing us blind. The lawyer started covering for him. Eventually we found out that the President, Secretary and that lawyer were all involved.
Strictly speaking its not military, but all of us wear badges and two of the four thieves had been in the Army. When everything went down, it was a no brainer for this retired Chief to push to follow the law. After nearly three years of being sued by a lawyer thief, I'm not so sure it would be so easy for me to stand up knowing how screwed up our legal system is.

I'd strongly suggest reporting any fraud or crimes to your services investigatory agency. I'd strongly suggest doing so anonymously. Send them the information they would need to see and understand what is going on. I'd also send it up the chain of command, anonymously...

Turn them in!

It comes down to the individual and "doing the right thing" when someone isn't watching. Basically "if a tree falls in the forest and no one is around, does it make a sound". This is a problem with civilian organizations as well but as a professional, it shouldn't be an issue but like everything else, we spend 85% of our time dealing with the 25%.