Entire bar staff committing fraud?

I have been working at a dive bar with a very "colorful" customer base for almost three years.

"Colorful" meaning people anywhere from teachers on the first Friday of spring break to large scale drug dealers.

Recently one of our "regulars" has been arrested for distributing and growing marijuana in our illegal state.

"Regular" meaning he comes in four to five times a week and racks up a $100-$175 tab. He tips decently, but he harrasses people, and many patrons have complained about him for various reasons over the years. He is a sloppy drunk, he's disrespectful to the staff and the property, and honestly he's just a fucking mess.

So this guy, we'll call him Casey, was put on house arrest after being convicted of distribution/growing-- I'm not exactly sure of the charges because I tried very hard to stay out of it. But obviously he's not allowed to go anywhere but his house and his job, but as a drug dealer, his job is run out of his house.

The only other place he goes is our bar.

He somehow worked out some secret deal with the owner of the bar to "hire" him so that he can still come out and drink and party and sell weed, yet clock in and receive a paycheck.

Apparently Casey signs his check back over to the bar owner, but I still think this whole thing is shady as fuck.

Here's where I need legal advice.

Not only is this bar owner putting all of his bartenders jobs AND the whole bar in jeopardy by fake hiring this guy, I'm afraid that if we were to be investigated, I could lose my liquor license forever and my hospitality mgmt degree could be revoked.

Is something like that possible? Could the entire bar staff be accused of fraud if we all know the situation? Could they take back my degree?

My coworkers and I all agree this is unethical behavior, but we don't know what to do.

Tldr: bar regular arrested for growing/selling weed in illegal state. Bar owner fake hires him so he can still come out and party. All of bar staff concerned their jobs are in jeopardy bc this guy is an idiot.

Written By: jameo_n_h2o
Source: http://bit.ly/2PgqIUr