It is not necessary for something to be "known" in order for it to be: A.) Wrong, B.) Fraud, C.) Abuse or D.) a violation of ethics.
Look into some of the commentary from compliance writers/journalists; you'll see that if this were a court case, the burden of proof would simply be that the co-worker did something inappropriate--not that he/she knew it to be incorrect.
Just a thought.
I tend to stay out of these "dodging bullet" issues, but thought I'd weigh in on what you do not have to "prove."
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