Part 29 (1/2)
”What?”
”He started talking about Dominion.”
”Dominion Savings & Loan?”
”Yeah.”
”What did he say?”
”He made it sound like he had information proving that we withheld data from the SEC during the IPO process, that the loan portfolio was in much worse shape than we reported. Basically, he said we defrauded the public investors.”
”That's ridiculous.”
Gillette glanced out the window. It was a clear, beautiful day. The temperature had finally risen above freezing again. ”Is it?”
”What do you mean?”
”Donovan and Marcie did that thing on their own. We never talked about it much at weekly meetings.”
Cohen put a finger to his lips and thought for a moment. ”That's true.”
”So, how would we know what went on there?”
”The accountants were all over Dominion from the day we bought it,” Cohen pointed out. ”They would have found something.”
”They didn't at Enron or Worldcom. Or any of the other big-company accounting scams. And Bill was very tight with the senior partner at the accounting firm on the audit.”
”But banks and savings and loans are different. There's federal and state examiners, too. There's so much scrutiny someone would have figured out what was going on.”
”Not necessarily. As long as people keep putting money in, you can keep playing the sh.e.l.l game. You know, credit one person's loan payment with someone else's deposit.”
”Yeah, but-”
”Stockman also claimed there were payments sent out to insiders after after the IPO. Payments that shouldn't have been made.” the IPO. Payments that shouldn't have been made.”
”Fraudulent payments?”
”Yes.”
Cohen spread his arms wide. ”How in the world would Stockman know about all this?”
”From someone inside Dominion,” Gillette answered. ”Or someone inside Everest.”
”No way,” Cohen argued.
”Ben, don't go naive on me again.”
”Who then?” Cohen demanded. ”Who's the rat?”
”Obviously, it wouldn't have been Donovan,” Gillette answered.
”Obviously.” Cohen stared at Gillette for a few moments, then his eyes grew wide. ”Marcie?” ”Marcie?”
”I didn't say that.”
”You implied it.”
Gillette pursed his lips. ”Yes, I did,” he agreed quietly.
”But she'd be crazy to leak information like that,” Cohen protested. ”If Stockman used what she told him, she'd face criminal charges. Why would she implicate herself?”
”Why would she necessarily implicate herself?”
”Because . . .” Cohen's voice trailed off as he put the pieces together.
”Right,” said Gillette, seeing that Cohen understood. ”Donovan's dead. All the blame can be shoveled into his grave. They can say he was the one responsible for working with the auditors and someone at the company to hide what was going on. It's perfect.”
”If what you're saying is true, then Donovan was murdered,” Cohen whispered. ”Whoever was responsible would need him out of the picture.”
”Agreed.”
”But why? What's the endgame?”
Gillette leaned back and ran his hands through his hair. ”Who's our biggest rival?”
”Apex,” Cohen answered right away.
”Right. Paul Strazzi. He doesn't want us to raise this next fund. He wants me to fail in the worst way. And he hated Bill. He'd want nothing more than to destroy Bill's legacy.”
”But enough to have him killed?”
”Miles Whitman warned me that Strazzi would do anything to screw us. Anything. Anything. I think he was right. I think Strazzi was willing to do anything. And he did it.” I think he was right. I think Strazzi was willing to do anything. And he did it.”
A troubled expression clouded Cohen's face. ”I still don't see the endgame. So we get some bad press on Dominion for a while if what Stockman told you turns out to be true. So what? Raising the new fund goes on hold for a while until we sell a few more portfolio companies at good prices and we continue to show the investment community how we kick a.s.s in private equity. I still don't think Strazzi would kill someone to maybe maybe put our next fund on hold temporarily.” put our next fund on hold temporarily.”
”Exactly,” Gillette agreed, leaning forward over the desk.
”Exactly what what?”
”None of it would make sense if Strazzi thought he'd only be able to put us on hold temporarily. But it might if he thought he could take us out of the game permanently. Or take us over.”
”Take us over?”
Cohen's reaction to this was going to be interesting. ”Donovan's widow dropped by to see me.”
”What did she want?”
”To let me know that her most important a.s.set in the world was her stake in Everest. And to let me know she was worried about it.”
”Why?”