OP - that stinks. My previous wife (r.i.p.) was a cop and she always was telling me "don't volunteer anything". I think your line that you were too busy to really watch him was perfect. If there is a criminal trial you are getting hauled in as a witness - let some lawyer ask you those questions where it will really matter, or maybe at a deposition before the trial. Losing $200k of your employers money may not be criminal but possibly it could be painted as civil negligence - like if the guy was spending his work time surfing the 'net, slipping out to play golf in afternoon and generally not taking care of business. But it's really a stretch unless he has nobody over him for oversight so his play time could be consider theft.
4) No matter how good a defense attorney you are, by the 55 minute mark of the episode, the celebrity guest star will have made a full confession in soliloquy format in front of a judge despite your repeated efforts to remind them to be silent.
At last we have arrived at the very heart of the matter. TV never lies, it's like the wise old grandfather of the Internet.
If your a witness in a felony investigation, dont say anything regarding the matter unless you have first spoken with an attorney or have one present when you give a statement. The cop wants a conviction, he wants damaging evidence against the accused and they're not above stepping on as many toes as they need to to get it, or make promises they have no intention of keeping. Remember these are professionals its what they do for a living, dont think you know what the score is because you dont, they always have the upper hand. Protect yourself first and foremost, if you dont you can get dragged into the mire quicker than you know what hit you.
In Canada if a potential employer calls you about a former employee looking for a job and you say the guy is a ****** worker, even if he is a ****** worker, you can held liable for slander. That is why if you ever have to check reference and they just say "Yes, they did work here." you know they were a **** employee. I do not know if it is any different in a police report but I would have clammed up too.
Cop- "was he bad at his job?" Proper response- "I wasn't his supervisor it's outside my area." Cop "are you avoiding the question?" Proper response "I responded properly. You need to interview his superior. May I leave now?"
Cop wanted your statement to be as negative as possible to justify an arrest and eventual conviction. Getting you to comment negatively on his work ethic would have helped their case and been very damning at trial. You replied honestly that you couldn't accurately comment on his work ethic beyond the facts of the ledger. You did the right thing. Crooked cops will have to do some more footwork and hopefully enough evidence surfaces to nab and convict this guy (if he's truly guilty). Again, I think you did the right thing.
It seems that by saying he wasn't around much and wasn't helpful to you you were answering her question...just not the way she hoped. Of course, you could elaborate on the fact that the person wasn't around much and not much of a help to you, but that pretty well says 'they didn't do their job' in other words. ...on the 'who's side are you on' comment, I would have said "I'm on the side of "I uncovered the illegal activity and reported it" side.
I wouldn't try to paint the guy off in a negative light, either. Who knows if she would have tried to turn it back on you somehow to get you into trouble, too.
I'm surmising if it were myself in your shoes, I would have answered the questions as the cop asked them. I totally understand the point that you're coming from too, though. Bottom line is you have to stick to your own ethics.
Cops are looking to F someone and if you're around the person they'll F up is you. So, shut your mouth and get a lawyer. Cops lie, cops are idiots, cops will F you. Give them your name and then ask to leave or arrest you. Then get a lawyer.
Anything you might say, other than factual evidence, is just hearsay and carries no legal weight. So if you pass judgement on the person, your judgement means nothing in the end. The wise thing to do is share the facts you know are true and leave the rest of it to the authorities. Sounds like you did that.