lesson to the youngsters - never do anything smelly/unethical (dont even mention criminal) without manager approval in writing. Otherwise at the first sign of trouble you'll be made to take one for the team as it seems to have happened in this and countless other cases.
I mean even in normal situation, whenever some details of feature, project, etc. are discussed and decided/assigned in some informal way, i find it is very useful to send a summary note so the manager/PM/etc wouldn't come later with the very different version of what happened.