It is dishonesty, but is it defrauding the company? It is worth a shot to say that it is not. I would argue that the section means to defraud the company monetarily.
I am not saying I am right or that I could win it, but unlike Upstate, I would give it my best shot. Win or lose.
You aren't right and you wouldn't win it because intentional dishonesty
is an act of fraud against the company.
We had a driver get fired for this exact thing, but the termination was because he got scared and
changed his story when he was questioned and on that basis alone the case for dishonesty was upheld. Had he kept his mouth shut and said "I don't recall" and
stuck with that story, the company would not have had anything but a Telematics report to go on.
What management will do is ask questions that they already know the answer to, in the hope that they can catch the driver in a lie. Or they will keep asking the same question over and over, in the hope that the driver will get scared and change his story. Once that happens, they nail him for the lie and the Telematics information becomes a moot point.