He didn't encourage anyone to lie. He said he would leave it up to his direct reports to figure out how to maximize cash flow. If a subordinate then decided to lie, that was the subordinate's decision.

Whenever you think your boss is telling you to do something wrong, the best possible thing you can do is to write them a letter (and keep a copy) explaining how you think it's wrong, and that you want them to confirm that they want you to do it. If they refuse to confirm it, don't do it. People do actually have free will, you know.