Rob is in the business of buying dental practices. He finds solo practitioners, buys their assets, signs them to a long-term contract and then improves their management and billing processes so effectively that both he and the dentists are better off.

Rob has just found a great opportunity with a lot of potential profit. There is only one problem. The bank will not give him a loan to buy the practice without checking the dentist’s financial record. Her credit rating is fine, but it turns out that she filed for bankruptcy 20 years ago. That event no longer appears on her credit record but, on the form it required her to sign, the bank asked about all bankruptcies. She is perfectly willing to lie. Rob refused to turn in the form with a lie. But when the bank learned about the bankruptcy, it denied his loan even though her bankruptcy in no way affects his ability to pay the loan. And the incident is ancient history - the dentist’s current finances are strong. Subsequently four other banks also refused to make the loan.

Rob is feeling pretty frustrated. He figures the return on this deal would be 20 percent. Everyone would benefit – the dentist would earn more, her patients would have better technology, he could afford a house in a better school district, and the bank would make a profit. There is one more bank he could try. 

Questions:

1. Should Rob file loan documents with the bank, knowing the dentist has lied?

2. Who would be harmed by this lie?

3. What rationalizations might Rob use?

4. What if Rob pays back the loan without incident? Was the lie still wrong? Do the ends justify the means?