Tip of the Iceberg for Kmart

Two former Kmart executives were indicted yesterday on three charges of securities fraud. This will open the floodgates for testimony from other employees about what was really going on at the bankrupt retailer, according to securities attorney Debra Speyer.

"This is going to be the tip of the iceberg," Speyer told CNBC's Wake Up Call. "I think we will end up seeing lower level employees coming up and putting pressure on and showing that there was more going on that than meets the eye." Speyer said in past cases of corporate fraud, low-level employees have provided information to flip higher level employees, but it is too soon to say if former-CEO Chuck Conway could face charges. She also said the damage caused by corporate fraud can't be overstated.

"This has been a tragedy to the American public and we have seen (it nearly) every day," Speyer said. She said conformity in accounting and corporate behavior needs to be enforced or there will be more cases of individuals simply "booking revenue ahead of what needed to be booked."