I like the idea of getting an opinion from the State Bar - one place you can start.  Second, just because you are under the direction of someone else, doesn't mean you should ignore things that are unethical or immoral.  I wouldn't work for someone that is and I think Shannon is right in taking note of what she is being asked to do and worrying about something that might be just that.  In fact in my state, it is literally illegal not to turn in unethical or illegal behaviors - to the point you could be charged with the crime if one exists.  Myself, I would find out if it is legal what he is doing - would you not report an attorney that is illegally using escrow funds?  Too many people close their eyes to illegal behaviors just because of  "who" is doing them.