James Grippando - Money to Burn

“If that’s the case, sir, then why are Saxton Silvers’ most talented people dumping their stock in the firm?”

“That’s ridiculous. I don’t have any idea what you’re talking about.”

“Well, let me give you an example. Michael Cantella has twice been named Saxton Silvers’ investment advisor of the year, correct?”

“I believe that’s true.”

Eric and I looked at each other, equally confused.

“He also holds the title of vice president, as head of your Green Division?”

“He’s certainly one of our most outstanding young talents.”

“No argument there,” said Bell. “He’s appeared a half dozen times on FNN, including twice on my own show-which, by the way, normally appears Monday through Friday at five P.M., so viewers, please set your TiVo.”

“And your point is?” said Wyle.

“Simple,” said Bell-and he seemed to be struggling not to smile. “My sources tell me that just yesterday, Mr. Cantella liquidated his entire personal holdings in Saxton Silvers-nearly two million dollars’ worth of stock and options.”

On screen, our CEO looked stunned. Across the room, Eric looked even more stunned. I stared at the screen with my mouth hanging open.

Bell said, “Sir, what about that?”

“I-I can’t comment, except to say that it sounds like more silly rumors.”

“It’s no rumor,” said Bell, holding up a document. “I have here-”

My cell rang, and I recognized the incoming number: It was Sonya, the general counsel.

“Be in my office in two minutes,” Sonya said, without even a hello.

“Michael, what the hell is going on?” said Eric.

“I can explain,” I told him, then went back to the phone. “Sonya, I’m with Eric.”

“I’ll be right there,” she said, and hung up.

“I’m listening,” said Eric.

“This is not what it looks like,” I said, taking a deep breath to start my story.

But Eric was now staring past me in disbelief. On FNN, Bell was going to a commercial-but not before the network flashed a new BREAKING NEWS banner on the screen: SAXTON SILVERS “ADVISOR OF THE YEAR” DUMPS ALL S &S HOLDINGS.

My burned hand was stinging worse by the minute, and echoing in my ear once again was Stanley Brewer’s warning about the type of work I did, the enemies I’d surely made-enemies I didn’t even know I had.

“That’s the thing about revenge,” I said, watching the screen.

“Revenge?” said Eric. “Who said anything about revenge?”

“No one, forget it,” I said, but the lawyer’s words were still ringing.

You never know when-if ever-they are going to call it even.

ERIC DIDN’T OFTEN MAKE ME SWEAT, BUT HE WASN’T WEARING HIS mentor hat this morning. It was hard to believe that twelve hours earlier I had been celebrating my birthday with scores of guests-including Eric-who probably thought I was one of the luckiest guys on the planet. Not one of them would have traded places with me now.

“Stuart is going to call me as soon as he putts out on the next hole,” said Eric, only slightly facetious about our CEO’s priorities, “so I need some straight talk: Is there any truth to what Chuck Bell just said about selling your stock?”

Eric had only a rough idea of my identity theft problems, so I laid out the details as quickly as I could. Sonya arrived just as I was getting to the FNN report:

“In typical FNN style,” I said, “the report is technically accurate, but it’s grossly misleading. True, all of my stock in Saxton Silvers was liquidated, but it was liquidated along with all of my other holdings-not by me, but by an identity thief who has taken everything I own and moved the cash into a secret offshore account.”

I expected Sonya to jump in and second my explanation, but she was silent. Not merely silent. She seemed skeptical.

Eric said, “Is there something you’d like to add, Sonya?”

“I’m concerned,” she said.

My stomach churned. I didn’t know where this was headed, but I suddenly recalled that it was within Saxton Silvers’ protocol to fire someone so long as there were more than two people in the room. At least I still had clients to go with me.

Thank God I didn’t drink the Kool-Aid.

“Concerned about what?” I asked.

She came to the edge of her chair and leaned toward Eric, hands folded atop her knees. It was her I’m-talking-to-the-president-and-only-to-the-president posture.

“Here’s the thing,” said Sonya. “Michael’s in management-an officer of the company-with access to inside information. He sold his shares the day before the firm publicly announced another twenty-two billion dollars in subprime write-downs. That could trigger an SEC investigation for insider trading.”

“But I didn’t sell anything. An identity thief liquidated my account and moved the money offshore.”

“But if I’m the SEC, your explanation raises an obvious question: Who controls the secret Cayman Islands account? In other words, are you operating behind a cleverly crafted financial and corporate shell game to avoid going to jail for illegal insider trading?”

“I hear what you’re saying,” said Eric, shaking his head. “But that’s a very cynical view.”

Sonya said, “I’m not making any accusations, but from a regulator’s standpoint, the timing of the sale and resultant profit seem a little too convenient.”

I checked the TV on the wall. The audio was muted, but Bell was still on the air and the breaking-news banner proclaimed that Saxton Silvers’ stock was down another thirty dollars per share-about ninety dollars for the day.

“Do the math,” said Sonya. “How many shares did you hold, Michael?”

“About ten thousand and change.”

“So the difference between selling yesterday and selling today…about a million dollars, right?”

Her theory couldn’t have been further from the truth, but the implication still gave me chills.

“Look, I didn’t do anything wrong,” I said. “I have no idea who accessed my account, and I have no clue where that money is headed. Why would I use the firm’s outside counsel to enlist the help of the FBI if I was the one behind the scheme?”

“As I recall,” said Sonya, “hiring Cool Cash and going to the FBI was my idea.”

Her remark made me bristle. “What are you trying to say?”

“The fact that the firm called the FBI won’t stop the regulators from being highly suspicious about the timing of your ‘identity theft.’”

I showed her my hand. “What about the package I got this morning? You and Brewer told me not to talk to the FBI, and I talked to them anyway when they came to check out the elevator. Is that what a crook does when he’s hiding something?”

She didn’t answer.

“The fact is,” I said, “I didn’t know about the additional subprime write-down that was going to be announced today. Eric just told me about it ten minutes ago.” I glanced at my mentor. He looked ashen. “Isn’t that right, Eric?”

He breathed in and out, staring at the television.

“Eric?”

“I just did the math for myself,” he said. “I lost two-hundred-forty million in the last forty-five minutes.”

I ran a hand through my hair. “This is insane.”

“It also changes things,” said Sonya. “It no longer seems appropriate for the firm to have its outside counsel dealing with the FBI on your behalf.”

“Why not?”

“Conflict of interest. Saxton Silvers shouldn’t use its lawyers to represent someone who might be accused of illegally trading its stock.”

“My life savings are disappearing deeper and deeper into the international banking system with every passing minute and you want me to change lawyers now?”