The only thing I would suggest doing is that you put together a memo in writing and dated from you to your immediate supervisor explaining the situation and your concerns, and nothing else. Keep a copy of that memo in your personal files should you need to CYA at some future time. Beyond that, I wouldn't do anything else, unless you are prepared to go the entire distance, and be fully aware of the repurcussions of going all the way. You would technically be in the right, and would most likely win the battle, but you'd probably lose the war.
Good Luck
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As a circle of light increases so does the circumference of darkness around it. - Albert Einstein