ethics question

Joe Blow, CFA, unsuspectingly joins the research team at Thugs r’ Us, an investment banking firm controlled by organized crime. No one at the firm is a CFA Institute member. Due to his tenuous situation, Joe begins making preparations for independent practice. He knows he will be terminated if he informs management that he is preparing to leave. Consequently, he determines that “if he can just hang on for one year, he will likely have a client base sufficient for him to strike out on his own.” This action is: A) a violation of his duty to disclose conflicts to his employer. B) not a violation of his duty to employer. C) a violation of his fiduciary duties. D) not in violation of the Code and Standards as the employer’s violations of the law absolve him from his ordinary duties to this employer under the Code and Standards. The ‘correct’ answer is given as B. Should it not be C? Doesn’t Joe have a fiduciary duty to not bring new clients into a firm he knows it run by the mob?

“He knows he will be terminated if he informs management that he is preparing to leave” Terminated? And he’s working for organized crime? I think the CFA code is the least of his troubles.