Sometime soon, Nicky. I’ve been gone two years now. I only want what’s best for you.
Nick ran past the brick buildings that fronted Marine Park, rounded the corner and headed down his street. The rain had stopped, and the sun was trying to break through the clouds. Nick saw the street ahead of him transform from a dark gray to a vibrant, sparkling brightness. He had just begun his hundred yard sprint when Ellie reminded, Remember, Nicky, you promised! Then she was gone.
*****
It had taken the District Attorney all week to prepare the subpoena for execution by the court. Pete Mitchell was squirreled away in his office for hours in meetings or on the phone. At times Nick could hear him shouting at someone. At one point the phone was slammed down so hard that Nick thought it must have been broken in half.
Nick held several meetings with his staff. The team continued to gather information about the Jordano management team, and now they were taking odds on the likeliest candidate for the informant.
“I think it’s that buffoon, Jackson Andrews, their head of Marketing,” Sam put forward as his choice. “He seems the type to go for the greenest pasture, and it wouldn’t surprise me if he turned against everyone else to get the best deal.”
“I don’t think so,” Devon argued. “Andrews is too full of himself and has too big an ego to believe anything terrible would befall him. Did you read his background? He’s always had a silver spoon in his mouth and never had to deal with concerns that plague the common man. Like where his next paycheck will come from.”
“What about someone no one would suspect, like Sreekanth Prabhala?” Nick asked. “He’s the newest member of the management team, and has the least tenure at the firm. Maybe he doesn’t want to be part of this cover-up.”
“He just doesn’t seem the type,” Sam argued. “Plus, he’s from England. You said the informant’s voice was disguised, but don’t you think you could tell if the caller had a foreign accent?”
Nick realized Sam was right. There was no way to hide a British accent unless the informant had taken acting lessons. “Okay, that means we can strike Prabhala. And we know it wasn’t Sinead Johnson since the caller was male. So who does that leave?”
“What about the CFO, Tom Stern?” suggested Victor Hanrahan, Nick’s tax expert. “He might be inclined to go along with the ruse but not really want to participate in it. He hasn’t been with the firm very long either, so he might not feel the allegiance to Jordano that the others do.”
No one in the room could dispute Victor’s arguments. Sam suggested a couple more names.
“What about Jack Walsh or Harry Wainright? These two wouldn’t be likely candidates but maybe they’re fed up with the firm, or dissatisfied with their careers in some way.”
Everyone thought for a moment. Nick decided this guessing game wasn’t a productive use of their time. “We’ll know the name of the informer soon enough. Until then it probably isn’t useful to play twenty questions.”
“Maybe not, but you have to admit it is kinda fun,” Sam smirked. “We don’t get much play time anymore, so you should let us enjoy it when we get the chance.” Everyone in the room chuckled.
“Okay, Sam,” Nick joked. “I’ll tell Mitchell that the staff needs recess more often. Now it’s time for your nap, so grab your blanket and get out of here.” Nick cuffed Sam on the arm, and was immediately sorry. It was like hitting granite.
Chapter 17
Friday, October 31
Harry got to the office early. It was the last business day of October, and the system would be generating shareholder account statements over the weekend. Some of these accounts had been modified to hide the Sierra Health error. Harry planned to meet with Tom Stern from Finance at 9am to review the final account list and discuss how they’d handle customer inquiries if and when they happened.
Harry felt sure that the firm would receive some calls, but he was hoping that the script that had been provided to the customer service reps would quell most worries that arose from irate or questioning customers. Harry had instructed the reps to refer any difficult calls to his office—he believed that his position and title often helped to persuade and mollify customers who had a bug up their ass.
Bottom line, if Harry couldn’t convince the customer that their transaction had been correctly posted, he had the authority to reverse and re-process it to reflect the real transaction date. He hoped to not do this at all, but that was simply naiveté.
Some shareholders will demand a correction, he thought glumly.
When he arrived at the office, he found an uproar ensuing. Nancy, Harry’s admin, approached him with a panicked look on her face.
“Investigators from the SEC are here. They have a subpoena,” she said. “They’re asking for all transactions processed on seven of our funds during the past month.”
“Shit.” Harry’s stomach started doing flips. “Where’s Kaspar?”
“He’s in the conference room with the rest of the management team. They’re waiting for you.” As he approached the closed conference room door, Harry could hear Kaspar shouting inside. He took a deep breath and walked in.
“Look who has finally decided to join us,” Kaspar said derisively. “Did the police at the front door slow you down, Wainwright?” Kaspar was standing in front of the windows with his hands crossed on his chest.
He is really pissed, Harry thought. The rising sun perched on the eastern horizon cast a glow around Kaspar’s silhouette, making him appear like the wrath of God incarnate. The scene evoked a memory of Harry’s grammar school catechism, the story when God stood on Mount Olive and barred the prophet Moses from entering the Promised Land. Harry realized he might find out how Moses felt that day.
“I just heard what’s happening,” Harry replied. He looked around the room. Everyone was there, looking miserable. In addition to Walsh, Sinead, and Sreekanth, the rest of the team involved in fixing the Sierra Health issue were present. Nora was at the far end of the table. She kept her eyes lowered and wouldn’t look at Harry. “What’s the scope of the subpoena? Has anyone from the Law Office reviewed it yet?”
“The Law Office saw it first thing, Harry,” scolded Jackson Andrews. He nodded towards Spencer Hayes, the firm’s chief legal counsel, who was sitting across the table. “Give us some credit. Spencer says the subpoena was properly executed. The SEC can review any transactions for the seven funds listed in the subpoena. And which fund do you think is one of the seven? International Equity, of course. Remember that fund, Harry? It had a little problem with a Sierra Health transaction about two weeks ago.” Andrews’ voice dripped with sarcasm. “We did tell them it would take several hours to create current transaction listings, but that was all the time we could buy. This is a disaster, a total disaster.” He put his head in his hands.
Harry turned to Kevin Jacobs. “All of the accounts that required modification have been completed, right?”
Jacobs nodded his confirmation but he looked like he was about to throw up.
“Okay, then. Let’s stay calm. Nothing unusual will show up in the SEC’s transaction review. It’s standard practice to make adjustments such as these. When they ask us for an explanation, we can show them other accounts where similar adjustments have taken place.” Harry looked around the room and finally at Kaspar. He said with emphasis, “We do not need to panic.”
“I’m glad you’re so unconcerned, Harry,” Kaspar barked. “But this is the first time in twenty years of doing business that regulators have been at my door with a subpoena in hand. I don’t like it. This issue has not been handled to my satisfaction.” Kaspar’s threatening tone worried Harry. He’d never really felt his job was at risk—at least before now.
Harry looked around the table. Nora continued to avert her eyes. This frustrated him because he needed an ally. Settling on his drinking partner, he called to Jack Walsh.
“Jack, what’s your take on the situation? Do we need to do further damage control here?”
His friend sat quietly for a moment. Then Jack looked directly at Kaspar. “I have to agree with Harry on his assessment. The SEC investigators will see some transactions that were adjusted. So what? It happens here every day. What they don’t know is the true reason for the adjustments. As long as that knowledge remains in this room, there should be no negative outcome from this.”
Kaspar glared at each person in attendance. “I want everyone here to remember the confidentiality agreement you signed when you were hired. That agreement covers fund processing and internal operating standards; therefore, this fiasco is covered by that agreement. If you don’t want to find yourself on the receiving end of a lawsuit, keep your damn mouth shut!” With that, Kaspar strode from the room, slamming the door behind him.
No one said a word for a full minute, and finally Harry felt he had to break the silence. “Let’s review the information that we’ll be providing to the SEC.” Harry looked directly at Nora since she headed the Compliance Department. “Nora?”
Finally she looked in his direction with hooded eyes. “Yes, Harry?” she said, melancholy in her voice.
“Can you describe to everyone here exactly which reports and other documents will be provided to the regulators? It’s extremely important that we’re all on the same page regarding the information that’s going to be turned over. They may try to do an end-around if we aren’t careful.”
“Spare us the sport analogies, Harry,” blustered Andrews. “In a minute you’ll be telling us to hit a touchdown.”
Harry grimaced. Andrews’ mix up of sports metaphors wasn’t surprising—his poor knowledge of basic sports terminology was a running joke within the company. He looked at Jack Walsh and Nora.
He could tell they were both trying to hide smiles. At least a little bit of the tension has broken, Harry thought.
“Okay, Jackson, I’ll try to keep the sports page out of this. Nora, can you send an email to this group within the hour?”
“I believe so.” She smiled briefly at Harry. “I’ll work on it as soon as I get back to my office.” Her usual enthusiasm seemed to have returned.
“Great.” Harry paused to add emphasis to the point he was about to make. He scanned the entire room. “Remember, no one should be talking to the SEC without someone from the Law Office present. Please also remind your staff to be discreet. They should direct all inquiries to their managers. Anybody have anything else?” No one responded. “Alright, meeting adjourned.”
Harry caught Nora’s eye as she stood up and he motioned for her to stay. He waited for the others to file out and the door to close behind them.
“I’m sorry,” Nora and Harry said simultaneously.
“No, last night was my fault,” Harry continued. “I got spooked when I saw Haskins at the bar, and I just didn’t handle it well.”
“It was my fault too,” Nora replied. “I was having such a good time, and I didn’t want it to end. I thought about it later when I got home. You have so much to lose if someone started to gossip about us. If you want this all to stop, I’ll understand.” Nora had moved close to him. Her perfume circled him like a warm fog.
Here it is, Harry thought. The proverbial fork in the road. Stay to the right, keep what I have: life with Sandy, the successful career, the big house in the suburbs. Go to the left, seek something better with Nora. Excitement, adventure, romance. New experiences, new friends.
Harry was afraid to decide.
“I really care for you, Nora. I hope you know that.” Nora smiled and reached for Harry’s hand.
“I care for you too, Harry.” She leaned in to him and rested her head on Harry’s chest just under his chin. Harry wrapped his arms around her and remembered how exciting it had been to have her touch him. He felt himself getting aroused.
With great reluctance and effort Harry put some space between them. “Let’s continue to get to know each other better. After all, when you learn that I snore at night and burp after meals, you may not be so enamored.”
Nora laughed. “I doubt that. I think you’re perfect. But I agree. Let’s get to know each other better. We have plenty of time.” She lifted up onto her toes and lightly kissed the corner of Harry’s mouth before walking to the door. She glanced back at him, and her eyes drifted down to the front of his pants. “Maybe you should stay a moment.” She giggled and left. Harry did just that.
Chapter 18
Friday, October 31
Nick waited in the lobby outside Jordano’s management offices. He had just delivered the subpoena. His stomach was still in knots, as it had been since he woke up that morning.
Currently, his staff was spread out within the office, trying to interview specific staff members, but Nick expected little information to come from those sources. He believed the gold mine would come from the data files and reports that the subpoena gave them access to. Nick agreed to give the firm several hours to pull the information together, but there was no way that his staff would leave the offices today without the data and reports they were seeking. As he sat there, he could hear angry shouting from the conference room down the hall.
We’ve stirred the pot a bit, Nick thought.
Sam lumbered around the corner with a couple of large report binders under his arm. “Nick, I have transaction journals for two of the funds right here. These include all transactions executed through last week. It looks like these reports are run on a weekly basis, and are cumulative for the month. It’s something we can start to sink our teeth into.”
“That’s good, Sam. Let’s get them to the office and check them out.”
Sam looked around. “I’ll find Victor and ask him to take these with him. He’s going back to review the tax statements that Jordano’s given to us.”
Sam headed off in search of his co-worker and almost collided with one of the Jordano staff members who had just left the conference room.
“Excuse me,” Sam said.
“No problem,” the man replied absent-mindedly. He was headed towards the elevator bank when one of the admins called to him. “Harry? This gentleman has been waiting to speak with you.” She gestured towards Nick.
The man turned and walked over to the seating area. He held out his hand. “Harry Wainwright. And you are?”
“Nick Doyle, sir. From the Securities and Exchange Commission.” Nick stood and shook Harry’s hand. “Pleased to meet you.”
“I wish I could say the same,” Harry replied, regret and anger clouding his eyes.
Nick nodded. “I understand. My team will try to be as unobtrusive as possible. Once we’ve gathered the appropriate material, we’ll be out of your way. That should be by end of the day.”
“I hope so, too. Can you give me an explanation for what you’re hoping to find? Maybe I could satisfy your information needs more quickly if I knew specifically what you are looking for.”
“I wish that was possible,” Nick replied. “But we can’t divulge the scope of our investigation until we’ve completed further analysis and reviewed the results. There is one question that I do have, although it doesn’t relate directly to our investigation. I just learned that one of your staff members was found murdered about a week ago.” Nick looked down at his notebook. “Julie Monroe.”
Harry looked grim. “Yes, we were all shocked at the news of Julie’s death. The Boston police have been here twice to interview her co-workers. They would probably be able to better answer your questions than me.”
“I’ll contact them as well, but my question pertains more to Ms. Monroe’s responsibilities here at the company. I understand she was a team leader in your operations group. Did she work specifically on certain funds or accounts?”
“She had many different responsibilities.” Harry was purposely vague.
Nick persisted. “Okay, but you have multiple teams of operations staff, so funds must be divided into specific groups. Which set of funds did Ms. Monroe’s team concentrate on?”
Harry knew he was cornered.
This
day couldn’t get much worse, he thought.
“Julie’s team primarily processed transactions for our international funds. These are often the most complicated types of transactions, and Julie did an excellent job with them.”
Nick nodded. “I’m sure she did. I’m very sorry for the company’s loss.”
But his mind was spinning. He knew the subpoena had focused on international equity funds. He wondered about the timing of these recent events: the murder of an employee and an informant showing up at the SEC’s door telling them to look at Jordano’s operations. Specifically, international funds.
Harry smiled weakly. “Is there anything else, Mr. Doyle?”
“No, that’s it for now, Mr. Wainwright. I appreciate your cooperation.”
“It’s not like I have much choice.” He waved a dismissal. “Nancy, please make sure that Mr. Doyle is comfortable during his brief stay.” Harry nodded and turned towards the elevators.
“Thanks again, Mr. Wainwright.” Nick watched as Harry entered the elevator and the doors closed behind him. These must be the kind of days that suck when you’re in senior management, Nick thought. In for a penny, in for a pound.
Chapter 19
Friday, October 31
It was after 8pm by the time Harry pulled into his driveway. The rest of the day had been hectic, but the firm had succeeded in supplying the transaction reports on the international equity funds to the SEC. The investigators had taken them and said they’d be returned later.
They were pretty discreet about what they were looking for, so Harry wasn’t sure what they would focus on. He was still pissed that someone had alerted the regulators to the Sierra Health transaction. And why did Doyle ask about Julie Monroe? Harry still didn’t believe the one event was connected to the other.
When I find out who divulged confidential company information, that person is so fired, Harry thought maliciously.
He was furious about the whole situation. He wished he could draw and quarter the person responsible.
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