No way in hell. She may well wind up in a cell next to Martha Stweart. (yeah, I know she's out) Company is trying some very fast footwork and nobody is gonna come out of this looking good. Part of this is tax evasion, pure and simple. Sounds like a host of other laws may be involved too. I would look for a new employer today. And I would save all the paperwork from the offer I could. She may even be required to report all this to the IRS. Actually, the cell might not be so nice. Might be next to one of those Charles Manson women. Martha could afford a very good lawyer.