The Princeling of Nanjing

by Ian Hamilton

  “I know, but I don’t think we’re the people who should be doing the looking.”

  “I agree. How about working through their banks?”

  “No, I don’t want to risk contacting any of them directly, or even through intermediaries. I know we did very well with Lanfen, but now there are five or six additional banks, and that brings too many people into the equation if we try to co-opt them. We’d never be sure about controlling them all.”

  “What are you thinking?”

  “We have to go outside Jiangsu, and probably Shanghai as well.”

  “Go to whom?”

  “We need to generate quiet, confidential, third-party inquiries about those companies from people who can’t be connected to Xu in any way at all.”

  “Who would you use?”

  “I’m not entirely sure. We have a law firm in Hong Kong — Burgess and Bowlby — that we think highly of. I want to talk to Richard Bowlby and see what he thinks. And I have banker friends outside China I can talk to as well to see if they have any ideas about how to make an approach.”

  “Do you still want my people to put together a spreadsheet of the information we have?”

  “Yes, I think it would be a useful resource.”

  “Are you going to send me what you have?”

  “I’ve made pages of notes that are quite well organized. I’ll scan them and email them to you,” Ava said. “I may make some preliminary phone calls tonight, and I may go to Hong Kong tomorrow.”

  “To work on this?”

  “Yes.”

  “Then I’ll get my people in here tonight to get that spreadsheet done. You might need it sooner rather than later.”

  “That’s a good idea.”

  “Consider it done,” Feng said, and then hesitated. “Ava, I have to say that when Xu first spoke to me about this, I was dubious about what it might accomplish. But after today, I can’t help but think that if we dig deep enough we’ll find something that’s completely rotten.”

  “You mean more rotten than getting bribed by thirty or forty or more companies?”

  “Yes. I do know that the bribes by themselves would be bad enough in most countries in the West, but they aren’t China. We need something more sinister if we’re going to get anyone’s attention.”

  “Well, then, we’ll keep digging.”

  “And by the way, I spoke to Xu a little while ago. He asked me how it was going and I told him about our success with the bank. He said he would call you later if his meeting with Lam didn’t go on too long.”

  “Did he say how things were in Guangzhou?”

  “Friendly enough, it seems.”

  “Good.”

  “But with the gangs, things always seem friendly until suddenly they aren’t.”

  “So I discovered a few months ago.”

  “Yes, I heard about that.”

  “I hope the same isn’t true about the Tsai family.”

  “It’s safer to assume that it is,” Feng said.

  ( 15 )

  After a quick trip to the business centre to dispatch her notes to Feng, Ava sat down at the room desk with a list of phone numbers. Johnny Yan at the Toronto Commonwealth Bank was the first name she wrote down, but it was still too early in the morning there. She hoped that the second contact, Richard Bowlby, was working late in his Hong Kong office.

  She got a recorded greeting and, as directed, dutifully punched in his extension number. The phone rang three times, and she was about to leave a message when a woman with an English accent said, “Good evening, this is the Burgess and Bowlby Law Offices.”

  “Hello, my name is Ava Lee. Our company, Three Sisters Investments, is a client of your firm.”

  “I know your company very well, and your name is quite familiar to me.”

  “I was calling to speak to Mr. Bowlby.”

  “He’s in Europe for the next week.”

  “Oh.”

  “This is Brenda Burgess. Can I help you in any way?”

  “I’m in Shanghai and I plan to fly to Hong Kong tomorrow. I should be there by mid-afternoon. Given Mr. Bowlby’s absence, is it possible you could meet with me?”

  “Concerning?”

  “It’s a delicate matter that’s best explained in person.”

  “It involves Three Sisters?”

  “Indirectly, but it has an impact nonetheless.”

  “Will May Ling be with you?”

  “No, she’s in Wuhan, but she’s aware of the matter in question.”

  “I wasn’t implying that we needed her permission to meet with you,” Brenda Burgess said quickly.

  “I didn’t take your remark that way,” Ava said, admiring Burgess’s sensitivity.

  “No. Well, that’s good.”

  “So about tomorrow?”

  “I’m available any time after three. I had another appointment scheduled for three thirty, but I’ll rearrange it.”

  “That’s very kind of you. I’ll be there at three.”

  “See you then, Ms. Lee.”

  Ava hung up the phone and then immediately punched in May Ling’s mobile number.

  “Hi,” May said breathlessly.

  “Am I disturbing you?”

  “No, I had to run to get the phone. I got your earlier message. I was going to call you back in a little while. What’s going on?”

  “Nothing terribly urgent. I wanted you to know that I’m flying to Hong Kong tomorrow to meet with Brenda Burgess.”

  “Why?”

  “The Xu business we discussed before you left.”

  “You want to involve our law firm in it?”

  “Not if you think it’s unwise.”

  “I’m sure you have a good reason,” May said.

  “Let me explain,” Ava said.

  “You don’t have to,” May said quickly. “You know I trust your judgement.”

  “I want to explain anyway. I’ve involved you in this, and I don’t want to do anything that has an impact on Three Sisters — even indirectly — without talking to you,” Ava said. “As you and Xu said, we need to keep ourselves as far removed as possible from the Tsai family. My problem is that I’ve spent the day looking at bank documents that show the Tsais have built a network of businesses and bank connections for what I think looks like either a sophisticated money-laundering scheme or a way of disguising how they’re accumulating assets. I need to do some deeper digging, but I can’t do it myself.”

  “What assets?”

  “I don’t know. They’re moving money around and through various companies, but if my hunch is correct, it’s going to land in one or two places.”

  “How much money are you talking about?”

  “More than a hundred million already, and that’s only over the past three years. We’ve barely scratched the surface.”

  “That’s aggressive of them, particularly given all the sensitivity in Beijing about money laundering.”

  “I have no indication it was laundered.”

  “So where is it?”

  “I don’t know, but that’s what I intend to find out, which is why I contacted Brenda Burgess.”

  “How can they help?”

  “I have the names of several companies that are linked directly to the family, and I have their basic banking information. I’m hoping that the lawyers can find out who owns them, what kind of business they’re doing, and who they’re doing it with.”

  “You said you spoke to Brenda, not Richard?”

  “He’s in Europe.”

  “Did you tell her what you wanted?”

  “No.”

  “When you do, you’ll obviously not mention the Xu connection.”

  “Of course not.”

  “The only reason I said that is because Brenda is always keen
to get the entire picture.”

  “I’ll fudge it.”

  “If she goes along with you, I would expect them to at least find out what you’re looking for on the corporate side. The banking information will be trickier.”

  “I have some bank contacts I trust outside of the mainland. They’re my backup, plan B. I’m going to phone them later. A bank-to-bank inquiry would probably be my best chance to get additional info.”

  “I agree.”

  “I’ll make those calls tonight.”

  “Ava, if you need my help in any way, you know where I am.”

  “I know, May, and thanks. It’s great to have you to talk to.”

  “How long do you think you’ll be in Hong Kong?”

  “At least a few days. I’ll see Sonny, and if Amanda goes back tomorrow then I’ll try to have dinner with her and Michael.”

  “And your father?”

  “He’s always easier one-on-one and at dim sum.”

  “Maybe you could also follow up with Carrie Song.”

  “May!”

  “Don’t sound so scandalized. It’s just a suggestion.”

  “Her assistant has already communicated with Shanghai. I want to let that process run its course. I don’t want the girls to think I’m second-guessing them.”

  “I’ve just come back to a situation where two deals were on the table ready to close and both went sideways. I’m second-­guessing everyone, including my husband.”

  “I’m sorry, May.”

  “And what’s more maddening is that he blames me. I know he could have finalized the deals, but he didn’t bother. He can’t come to grips with the Three Sisters and I think this was his way of punishing me for not being here.”

  “That’s not good.”

  “He’ll get over it.”

  “Is there anything I can do?”

  “Keep Xu out of trouble.”

  The word “why” bounced on Ava’s tongue and then quietly settled. “I’ll do the best I can.”

  “Call me from Hong Kong,” May said. “If things stay gloomy here I might join you.”

  Ava put down the phone feeling downcast. She wasn’t accustomed to May’s being negative. She checked the time. It was still too early to call Toronto. She was contemplating going outside for a walk when her cell rang.

  “Yes.”

  “It’s Xu.”

  “How did it go today?”

  “Well enough. Lam understands my position and is willing to help, at least for the short term.”

  “That’s great.”

  “Not really, but it gives us some time. How was your day?”

  “It was productive.”

  “Feng told me that, but I wanted to hear it from you.”

  “He’s a very good man.”

  “He’s an accountant.”

  “So am I.”

  “Except I never think of you as one.”

  “You sound a little drunk,” Ava said.

  “I had a few drinks, but mainly I’m just tired. It was a long day.”

  “Here too.”

  “What did you find out?”

  “The Tsai family is taking money from anyone who’ll give it to them.”

  “I thought we knew that already.”

  “They also have a need to hide where it’s going. Not where it’s from, but where it’s going.”

  “And do you have a plan to find out why and where?”

  “I do.”

  “How?”

  “Let me handle it.”

  “Do I have a choice?”

  “Yes. You can always tell me to back off.”

  “What would that accomplish?”

  “It would maintain the status quo.”

  “Which is the last thing I want, so go to it,” Xu said.

  “Thank you.”

  “No, thank you.”

  “It’s way too soon to say that. We may end up with nothing.”

  “You have something already. What we don’t know is what we can do with it that will make a difference.”

  “I concede to the truth of that,” Ava said.

  “I’m coming back to Shanghai tomorrow. Will you have dinner with me?”

  “I’ll be in Hong Kong.”

  “Hong Kong?”

  “That’s where your business takes me.”

  “I won’t ask anything else.”

  “Better not to.”

  “Should I let Lop know you’re there in case you need any help?”

  Lop had been Xu’s Red Pole, his main enforcer, in Shanghai. Now, in every way except title, he ran the triad gang in the Wanchai district of Hong Kong.

  “I won’t need that kind of assistance, and if I do, I have Sonny.”

  “Sonny’s not a man to be taken lightly,” Xu said. “He laid down his life more than once for Uncle.”

  “And for me.”

  “He’s your man now.”

  “Yes, and my only problem is keeping him busy. He couldn’t live anywhere else but Hong Kong, and I’m hardly there. So I’ve had him driving my father and my half-brother Michael. I’m sure he’s bored, but it keeps him out of trouble, and Uncle warned me that he’s a man who can fall into trouble easily if he’s at loose ends.”

  “Well, say hello to him for me, and good luck in Hong Kong. I’m heading to dinner with Lam.”

  “Give him my regards.”

  “I already have, and he sends them right back.”

  Ava ended the call and glanced at her list. It was still a little too early to call Johnny Yan, so she called Amanda.

  “Hey,” Amanda said.

  “How are you feeling? Still hungover?”

  “I’m at the sample factory and I’m functioning. I threw up in the middle of the night and then took a couple of extra-strength painkillers. That helped.”

  “How about the others?”

  “About the same, but I think we’re all still on a bit of an adrenalin rush from the launch.”

  “It was fantastic.”

  “That’s the collective opinion. We’ve had a raft of emails and texts today, and they’ve all been positive. We’re in the middle of prioritizing who we need to talk to. There are a lot of options in terms of buyers. There’s also some prime real estate that’s been offered if we want to go with stand-alone boutiques.”

  “Work it through.”

  “We’ll do what we can today, and then Chi-Tze, Gillian, and Clark can run with it.”

  “Are you still planning to fly back to Hong Kong to­morrow?”

  “Yes. I’ve been gone for about two weeks and I’m sure there’s a huge stack of work waiting for me.”

  “And a husband.”

  “Him too.”

  “What time is your flight?”

  “Ten thirty on Cathay Pacific.”

  “I’ll fly with you, if you don’t mind.”

  “I’d love it, but what’s taking you to Hong Kong?”

  “I’m meeting with Brenda Burgess. I need her input on that non–Three Sisters business I mentioned to you the other day.”

  “You’ll stay at the Mandarin Oriental?”

  “If there’s availability.”

  “Any idea how long you’ll be there?”

  “A couple of days, I would imagine.”

  “You’ll have dinner with us?”

  “Of course.”

  “Michael asked Sonny to meet me at the airport. Are you going to tell him you’re flying in with me?”

  “No, let’s surprise him.”

  “That should be fun.”

  “What are you doing tonight?”

  “I’m having dinner with Elsa Ngan again. I have to leave here in about half an hour. We’re going to Sir Elly’s.�
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  “I’m sure it will go well.”

  “She’s being tremendously supportive. And so, by the way, is Laura from Lane Crawford. She sent another email this afternoon with more questions and urged us to get back to her as soon as possible. She says they don’t want to delay making a decision.”

  “Fingers crossed,” Ava said.

  “I know you don’t like to make assumptions, but I have to say that the way Carrie Song reacted to you makes us all think it’s almost a sure thing, unless something bizarre happens.”

  “I wish you hadn’t said that.”

  “I know.” Amanda laughed.

  “Okay, I need to go before you say anything else,” Ava said. “If we leave the hotel at eight thirty tomorrow morning that should give us ample time to get to the airport.”

  “I’ll meet you in the lobby.”

  She checked the time and finally decided to try Toronto. She had Johnny Yan’s office and cell numbers and tried the mobile first. It went directly to voicemail. She called the office and, to her surprise, he answered.

  “You’re at work early,” she said.

  “Is this Ava?”

  “It is.”

  “Where are you?”

  “Shanghai.”

  “You’re always somewhere I want to visit.”

  “All you need to do is buy a ticket.”

  “I have a wife and three kids.”

  “Then buy them tickets as well.”

  “I wish I could, but the bank business is long on pension benefits and short on immediate compensation. Nearly everyone else we went to York with is in the same position as me. They’re working at banks or insurance companies or big accounting firms. You’re one of the few who broke out.”

  “It wasn’t entirely by choice,” Ava said. “You know I went to Babson College after York, and when I left there I tried the corporate world. I didn’t last six months. I quit before they tossed me out the door.”

  “Lucky for you.”

  “And maybe for you, Johnny. I need some help and I’d have no problem buying airplane tickets for you and your family, wherever it is you want to go.”

  “You know you don’t have to do that,” he said.

  “I know, but I can afford it and you’ve been a terrific friend. Our York network of Chinese accountants has been completely supportive over the years, but I’ve taken more than I’ve given.”

  “You’ve thrown a lot of business my way. That’s good enough.”