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“Arya” and I were classmates in college. We were in the same year and did the same major. We’ve known each other for 16 years and have worked together twice; one time she was my manager and the other time I was hers. We often attend the same work-related conferences and exchange thoughts on articles that appear in industry publications. Our relationship is a professional one, although I did attend her wedding because her husband was in the same fraternity as me, and she did introduce me to my future husband at a networking charity event. Besides her wedding, we have never talked outside of work or a networking event.

I was hiring for a position and one of the promising candidates was working for Arya and had put her down as a reference. Arya sung her praises and told me she was the best employee in the department. The position I was hiring for would be a promotion for the candidate, and Arya said there was no room for promotion in her department at the moment. Based on Arya’s glowing review and the same from another manager there (and her strong resume), I hired her.

It was a catastrophe. Her work was sloppy and disorganized. She struggled to do basic tasks, missed deadlines, and was sometimes cold to her coworkers and clients. She was asked to take point on a project because her resume listed a similar project, and it went so far off the rails we had to bring in outside help to get it back on track. I know a promotion and new company can be an adjustment, but she was incompetent beyond having to adjust to a new place. Her mistakes cost us so much money she had to be fired.

When I spoke to Arya the first time, she played dumb. The second time, she admitted to lying about how good the candidate was because she was tired of dealing with her mistakes and wanted her gone. She told the candidate she wouldn’t fire her if she quickly left on her own and promised a good reference in exchange. The other manager agreed to do the same thing when Arya asked him to. Arya also told the candidate to lie about how long she worked there to make it seem like she was there longer and to put the project on her resume even though she wasn’t point on it. Arya said it was business and nothing personal.

After she was fired, my boss told me the bad candidate is being investigated by federal authorities for regulatory violations from her time at Arya’s company. The investigation started just when we were interviewing her, and Arya knew about it and didn’t tell me. The other manager is also being investigated for the same violations, which is how Arya got him to lie about the candidate. If the candidate had not left her job there, she would have been fired when word of the investigation got out. We had another candidate who worked for Arya, and Arya told me he was a mediocre employee who does the bare minimum. He just won two different prestigious industry awards. Arya also admitted to lying about him because she didn’t want him to leave. He still works at the same company as her.

I’m angry. She knowingly lied to me. I put stock in her opinion because of our relationship. I feel stupid and duped. I’m afraid making such a bad hire and passing up a good candidate will make me look bad and affect my career. My boss and her boss are upset about this debacle, and everyone knows something is up because the regulators came in when they found out the candidate worked here. They haven’t found anything yet but everyone is still nervous. The other manager who lied about the bad candidate has already been arrested and, based on what the bad candidate is accused of, she will likely be arrested soon also. (Arya cooperated with authorities, isn’t being investigated, and isn’t accused of doing anything against regulations.)

I don’t plan on talking to Arya again beyond being arms-length and professionally cool if I run into her at a conference and others are present. I’m not even sure if I can go to her boss because I don’t have any proof beyond her telling me verbally. Whether I knew her or not, the lie was egregious. Do I tell her boss? Do I confront her or leave it alone? She didn’t show any guilt or apologize to me.