by Dan Kelly
“They probably do, but some folks don’t pay much attention to rumor mills because too many times they have the wrong slant on things. They just tune them out.”
“What have you learned about the Paganelli Wineries?”
“It’s another family owned winery that was started by a father and son, Basilio and Alfonso Paganelli, in the early 1980s and since its beginning has been on a slow but steady growth pattern. They retired a couple of years ago, turning over the business to Alfonso’s sons, Duilio and Riccardo, who appear to be more aggressive in the marketing area, doing more advertising and opening retail outlets for their wines and accessories.”
“Perhaps their desire to grow their business at a faster pace might also include mergers and acquisitions.”
“Perhaps, but their financial situation is borderline when it comes to having the muscle to carry out such a plan. They might be able to swing the purchase of one or two of the wineries involved, but not all of them.”
“They could borrow the money to make the acquisitions.”
“That’s easier said than done, especially in our present economic environment.”
“Well, there are lenders and then there are lenders.”
“You mean …”
“I do.”
“Well, it certainly won’t hurt to bear it in mind as I move ahead with the investigation. Organized crime has gotten a lot smarter over the years.”
When they pull into the parking lot of Paganelli Wineries they are immediately struck with the startling difference in the images projected by the grounds and buildings of Paganelli Wineries versus the Vescovi Vineyards. The Paganelli family has adopted the outward façade of the typical business found in business parks all across the country. The buildings are constructed of some kind of metal clapboard siding and have the kinds of large windows that let in a lot of light, but no fresh air because they don’t open and the only indication that it’s a winery is the name on top of the main building. They have a nice green lawn fronting the main office building with well-tended flower beds surrounding its base and a few Coast Live Oaks situated around the perimeter of the property and one is located smack dab in the middle of the front lawn. The grounds have a nice clean look, but possess nothing to make them stand out from the crowd.
Approaching the receptionist, Derrick introduces Julie and himself and states the purpose of their visit.
“One moment please.”
Picking up her phone she dials an extension and says, “Brenda, there are two people from the Sheriff’s Department here to speak with Duilio and Riccardo.” She listened for a few seconds and then said, “I don’t know.” A good minute of silence goes by and then she says, “Okay, I’ll tell them.”
She hangs up and then says, “Please have a seat. The brothers are just about to bring a marketing meeting to a close and will be able to talk with you shortly.”
Derrick thanks her and they grab a seat to wait. Derrick’s thinking, “They might be in a marketing meeting or they’re buying time to get their act together.”
Ten minutes later the Paganelli twins come out to the reception area to find out why the Napa Valley Sheriff’s Department wants to talk with them.
Derrick explains the purpose of their visit and asks if there is someplace they can talk in private. Duilio says, “I don’t believe that will be necessary as we have no knowledge that could be helpful in your investigation. We appreciate the information and if we are approached or hear anything that might have a bearing on what’s been happening at these other wineries we’ll pass it along. May we have a couple of your business cards so we know how to contact you if something turns up?”
“I’ll be happy to give you my business card, but I have some questions I’d like to ask you and standing here out in the open where everyone can hear and get the wrong impression might prove embarrassing to you to say nothing about the potential for being interrupted.”
“Are we under suspicion in connection with what has been going on at these other wineries?”
“No more than anyone else we’ve been talking to about what has been going on? We’re in the fact finding stage of our investigation and becoming more familiar with the wine industry in Napa Valley is part of our investigation. Frequently, people possess helpful knowledge that they don’t know they possess until we start prodding them.”
Riccardo Paganelli who hasn’t said a word up to now says, “I’d feel better about this if we could have our attorney present.”
“If you have nothing to hide, I don’t see why you feel you need an attorney present, but suit yourself. Call your attorney and tell him or her we are in the middle of a murder investigation among other things and you may have information that might be helpful to us. It is imperative that we talk with you ASAP, preferably sometime today. We’ll wait.”
When the Paganelli brothers leave the reception area Julie says, “I’m an amateur when it comes to stuff like this, but even I sense something out of whack here. Their caution seems to be unwarranted unless they have something to hide.”
“It could just be a natural reaction for them when they have to deal with the law. For some reason they just might not trust law enforcement in general or as you’re sensing they’ve got something to hide. It’s an interesting and unanticipated reaction that’s for sure. We’ll just have to wait and see how things play out.”
Fifteen minutes later, the brothers return to tell them their attorney is on the way over and should arrive in about a half hour. Derrick says, “While we’re waiting, to save some time why don’t we get started with some basic questions that we’ve been asking everybody and if there’s anything you don’t want to answer until your attorney gets here we’ll skip over it, okay?”
The brothers look at each other and then both shake their heads. Riccardo says, “Our attorney told us to keep our mouths shut until he gets here and that’s what we’re going to do.”
Looking at them with a manufactured surprised and suspicious look he says, “Fine.”
Derrick’s thinking, “Oh well, it was worth a shot, but in the shaking people up department sometimes a look can accomplish more than a bunch of words. Judging from the look on their faces, I might have given them food for thought.”
The brothers once again retreat behind the reception area and they are left to twiddle their thumbs. Julie whispers, “There’s something not right about those two. They’re worried about something.”
Derrick nods his head in agreement, but doesn’t say anything. Twenty five minutes later a very distinguished looking man about fifty years of age walks into the reception area, spots Julie who is in uniform, walks over to them and introduces himself. “I’m Bruce Whitman the Paganelli brothers’ attorney. They’ve asked me to sit in on your interview with them regarding some incidents that have occurred at some other wineries in Napa Valley. I’ll have the receptionist announce my arrival and then we can all get together somewhere where we’ll have some privacy.”
Derrick says, “Go ahead. I’m sorry you had to come out here. There really was no need for them to call you as we’ve been asking the same questions of owners and employees of other wineries in the Valley to gather information that might point us in the right direction with our investigation.”
Five minutes later the receptionist is leading them down a long hallway to a conference room where they find the Paganelli brothers and Brenda one of their admins waiting for them. Once everyone is seated, Derrick immediately goes for the jugular by asking the brothers, “Why do you think you haven’t been approached with an offer to buy you out?”
Duilio responds with, “I have no idea. Why would you ask us a question like that?”
“Hmm. I think I hit a nerve.”
“I’m hoping you can provide some insight as to what these people are using as criteria for approaching certain wineries and ignoring others. You know the winery business, we don’t. If you have some ideas, we might be able to use them in our investigation to zero in on who is harassing these oth
er wineries and perhaps this same information can be used to help thwart future attempts on other wineries.”
Riccardo handles this question with, “I think the answer to that question is obvious, the size of the impact on profitability. Obtaining a larger share of their market and immediate access to new markets without the associated business development and marketing expenses associated with those activities would translate into a significant and almost instantaneous improvement in the acquirer’s bottom line. Another benefit would be an elimination of some of the competition.”
“From what I’ve learned from some cursory research I did on Paganelli Wineries before we came out here, it has been in business for over thirty years and has enjoyed a steady growth pattern even in dismal economic times. I would think you’d make an ideal prospect for acquisition. I’m curious as to why you haven’t been approached.”
Lying with a poker face that any Vegas gambler would envy he continues with, “Of course, I have no financial information on any of the wineries in the Valley, including yours, but I think the people behind what’s going on have somehow gained access to that kind of information regarding the wineries approached. This could be achieved by computer hacking at the wineries or at the accounting firms handling the wineries financial affairs or by employees at the wineries who have access to such information. I’m thinking you might be doing something that had the targets for acquisition been doing the same thing these situations would never have developed. What do you think about my assumptions?”
Duilio opens the door to what his business ethics are with a very revealing answer. “We’re not about to share our operational secrets with outsiders. We apparently have an edge over some of our competition and we’ll do everything we can to keep that edge sharp.”
Julie says, “Apparently, you are taking some new steps to keep that edge honed. You’re doing a lot more advertising and Paganelli Wineries retail stores have started to pop up around the Valley. You must be doing very well. That kind of business development requires substantial capital investment. I’m surprised that kind of activity hasn’t attracted the attention of the people who have been trying to gobble up some of the other small wineries in the Valley. Why do you think that is?”
The brothers’ reaction to Julie’s question was a perfect example of a pregnant moment. The cool, unconcerned facade they’d been displaying up to now dissolved like sugar in a cup of coffee. It was replaced by angry looks bordering on the urge to hit something or someone.
Mr. Whitman quickly spots the change in mood and steps in before one of the brothers can say or do something that they’d regret later.
“Sergeant Chandler, my clients have shown their willingness to cooperate with your investigation, but this type of questioning borders on inappropriateness for the occasion. They are under no legal obligation to reveal company secrets. If you have any other questions that don’t require them to do that, please proceed. Otherwise, this interview is over.”
Derrick responds with, “I have no further questions for now, but I may have some more as this investigation unfolds” With a squint of his eyes coupled with a ‘you’re hiding something’ look he concludes with, “Thank you for your time. Good day.”
When they get out into the parking lot Derrick says, “The Paganelli brothers are definitely giving off some very interesting vibes. I wish I had sufficient cause for a tap on their phones. One thing I can do is put a tail on them and see where they go and who they talk to. That might reveal something that would convince a judge to give me permission to put a tap on their phones.”
Julie says, “My impression of them is that they have egos the size of Mt. Whitney. They didn’t appear to be concerned that they were perhaps sending suspicious signals to us, probably thinking they are too smart for the likes of us.”
“But our questions definitely got their dander up that’s for sure.”
“Before we head out for the last two wineries on your list, can we stop somewhere for a bite to eat? I only had a cup of coffee and a bagel for breakfast and I’m starving.”
“Sure. There’s bound to be someplace where we can grab something to eat along the way to our next stop.”
“Do you want me to drive?”
“Yeah, I have a couple of phone calls I’d like to make.”
The next winery is ten miles down the road which gives Derrick ample time to make his calls. The first one is to Bill Bemis to apprise him of what went down at the Paganelli Winery and to ask him to arrange for a tail to be put on the Paganelli brothers.
The second call goes to Maury Hoagland to ask him to poke around for any connection between Investors Anonymous and Paganelli Wineries. He summarizes the interview with the Paganelli brothers and finishes with, “Maury, judging from the increases in their advertising and the number of retail outlets that have been opened around the Valley and other parts of the State these guys are in an expansion mode which requires big bucks. I’m thinking there’s a possibility that they don’t have sufficient capital of their own to finance their expansion plans and have to seek outside funding. If there is a connection, that’s too much of a coincidence to be overlooked. There’s something about these guys that doesn’t smell right.”
“I’ll see what I can find out, but you know, Derrick, these guys may be guilty of nothing more than not liking cops or worrying about the competition learning about company secrets if they share any of them with you.”
“I know, I know, but right now they’re the only ones standing out from the crowd and my gut’s telling me to dig deeper.”
“Okay, touch base with me in a couple of days if you don’t hear from me by then. Bye.”
Julie asks, “After you speak with the owners of the remaining two wineries, what will you’re next step be?”
“Assuming no leads are generated by these last two visits to follow up on, the only thing left on my immediate ‘to do’ list is to make an appearance at the Napa Valley Vintners Association in St Helena tomorrow night at seven to talk with the membership about what has been going on and ask them for their ideas and to keep their eyes and ears open. I’m hoping that my contact with just about every winery in the Napa Valley will put some heat on the people behind what has been going on and motivate them to do something that will open some doors for me. Also, the more channels of communication I can open up within the Napa Valley winery industry the more likely I am to get some helpful input from that quarter.”
“Reading between the lines, is one of the things you’re hoping for being able to turn the heat up high enough on these people so they’ll try to take you out of the picture and in so doing expose themselves to arrest?”
“That thought has crossed my mind.”
“If that happens, they’re not going to come at you head on. You better be looking over your shoulder all the time when you don’t have someone watching your six.”
“I hear you. I don’t have a death wish and I’m playing with all 52 cards.”
Three miles out from their next stop they come across a little plaza that has a sandwich shop so they stop to grab something to eat. The place doesn’t look like much, but, surprisingly, the sandwiches are big, fresh and delicious and they sell bottles of cream soda which they both like but haven’t seen in years. That turns out to be the highlight of their day as the last two wineries on their agenda prove to be non-productive other than to make the owners aware of what has been going on.
During the drive back to the station Julie asks, “Are you going solo to the Napa Valley Vintners Association meeting?”
“Bemis will be going with me to lend the weight of his rank to stress the seriousness of what’s going on and to help motivate the membership to get involved, to look for anything out of the ordinary and notify us if they pick up on anything.”
“Would you mind if I tag along? I’ll stay out of your way.”
Looking at her with a knowing grin on his face he answers her with, “It looks like I might be seeing another Jessica F
letcher or a Jane Marple in the making. You’re getting hooked on this aren’t you?”
Smiling a little sheepishly she answers with, “It is kind of addictive.”