Depends on how accurate the statement is.
Depends on how you define permissable, what actual violations have taken place, what punishments you feel are fitting.
Also depends on what standard you hold this employee to. Is it a special set of standard that you've made up because you just don't like the employee?
Or is it derermined by the precedent of nearly all the people who've previously held the same position (as well as nearly all of their colleagues) being lying, stealing, pieces of shit?
Also, your analogy isn't a great one.
Upper tier employee and colleague...yeah.
How about just ask what I think of the president doing this. And I've already answered that question.