Nothing Personal

By Richard Nelson Kane

Cal Wiser, mild mannered and nerdy, just got word that his investment portfolio will not support his retirement and he must work for another seven years; however, he is about to lose his job and has to get a new one quickly while in the midst of a recession; and he may have uncovered evidence of a fraud that will put his life in danger.
Brian Ives, a handsome, young, aggressive, Senior Executive Bank Vice President, just learned that his promised promotions to the presidency and Chief Executive Officer positions at the Great Dominion Bank will not happen. To get even, Ives implements a scheme to defraud the bank and gain his promised titles. Wiser uncovers the scheme and he and Ives square off in a battle for survival.

• Language: English
• Publisher: BookBaby
• Release date: Jun 14, 2011
• ISBN: 9781617926914

Book preview

him

Chapter 1

Cal Wiser, I haven’t seen you all day. How are you? asked Lori as she breezed by my desk without stopping to have a conversation.

I’m fine, Lori, how are you? came my delayed answer to the air currents she left behind. Her words and her speed startled me, as my mind was elsewhere. I had just gotten off the phone with my financial advisor, and his words had left me in a state of torpor. 

I’m following up on our discussion of last night with the information you requested, he told me. We gave it our best shot, Cal, but given the sad state of the economy now, and the expenses of your divorce of two years ago, you will have to work until you are age sixty-seven. I realize that it’s a big comedown from the original plan we crafted years ago that had you retiring at sixty-two and having the financial wherewithal then for you and your wife to travel extensively. Lord knows we’ve tried for the past two years to make adjustments to that plan to make it work, but unless the economy does a one-eighty quickly, the money won’t be there. You will turn sixty soon and I don’t want you to brood over this situation too long, so let’s get together and see what adjustments we can make to possibly shorten the length of time you will have to work. Why don’t we meet the first of the month?

 After agreeing to meet with him and hanging up, I became more detached when I recalled the rumor I heard this morning that layoffs are coming. I know that I will be one of the employees let go if that happens, as my salary and age work against me. It doesn’t matter that age discrimination is illegal; I’ll be gone. Thus, if the rumors are true and I am let go, I will have to find a job at the age of sixty, in a down economy, when I’m in a foul mood. Who knows, maybe retiring at sixty-seven is not realistic. I’ve always tried to be optimistic and to welcome a challenge, but if this unfolds as I see it, it will be a struggle to keep a positive frame of mind.

I went back to work and began reviewing a report I had generated before Lori walked by. As I flipped through the pages, something jumped out at me. What the....? What is this? The report appears to disclose a secret about our bank’s loan portfolio, which, if correct, will send someone to jail and put my life in danger. Maybe my perception of my future is wrong. Maybe what I foresee as a life filled with a never-ending mono-chromatic grey will instead be comprised of a multitude of colors. I hope blood red won’t be the predominant one.

§

Brian Ives, young, successful, and accustomed to living in the limelight, was feeling isolated and glum. First he learned that he would not become the president of his bank as promised him. Then, after he had put a flagitious plan in place to secure that appointment nonetheless, he learned that Cal Wiser may have stumbled across information that could expose the plan, and send him to jail. Ives wasn’t about to let that happen.

Ives, the Chief Financial Officer and a Senior Executive Vice President at the Great Dominion Bank in Waterbury, Connecticut, had been with the bank for five years. Heavily recruited, and ultimately lured from a New York bank by Donald Gagre, the Great Dominion President and Chief Executive Officer, Ives was promised Gagre’s positions upon his retirement six years later.

As one might expect, some members of the executive team were unhappy that he joined the bank. Elliot Nixon, the Senior Executive Vice President in charge of the bank’s branch network and lending, was especially displeased. He had been at Great Dominion for seven years. The bank doubled its size during this period and Nixon felt that much of the growth was due to his leadership and efforts. He believed that it was he who deserved to become the next leader. Jay Halperin, legal consul and member of the board of directors, and a force behind the bank’s mergers and acquisitions, felt that he, too, should become president and CEO when Gagre retired. Initially, Nixon and Halperin did not let their feelings affect their performance and the executive team managed to coexist.

§

Two years after Ives joined the bank, Gagre instructed Ives and Nixon to investigate the efficacy of offering a national residential construction lending product. Together they led a team that in six months had researched and proposed the product’s implementation to the board. The economy was in high gear, and new home construction was active and getting more so all across the country. A cost benefit analysis showed the bank earning tens of millions of dollars with this line of business. It was going to be a departure from the banks’ heretofore regional lending and type of loan product; however, with adequate controls in place, no problems were expected.

Once a small community savings bank, Great Dominion converted to a stock bank two years before Ives joined it. Shortly thereafter, it set a goal of becoming the New England’s premiere bank and to that end it acquired other banks, opened new branches, and grew into a regional powerhouse. Flush now with cash, and eager to establish a more recognizable national brand name, Gagre and the board approved the construction lending product. Although inherently more risky than the bank’s existing loan products, no one was overly concerned. The executive team and the board were so captivated by how much money they were going to earn from this new product that they could scarce contain themselves.

§

Upon approval of the product, Nixon, Ives, and Laura Gepo, who was Ives’ Senior Vice President in charge of loan operations, immediately began setting up the new lending departments.

Nixon hired a salesman extraordinaire who had an extensive background in the marketing and sales of banking loan products, and had worked with Nixon previously. Over the next three months a national sales team was established, with each member bringing his own network of lenders, brokers, attorneys, appraisers, closing agents and title company contacts with him. Quickly word got out that Great Dominion was in the national retail construction lending business, and the salesmen were anxious to get the new product up and running.

For his part, Ives needed a strong operations person able to stand up to, and work with, the sales staff and the Information Technology department, as well as accounting and audit. Gepo, with experience in this type of lending, was that person. Reporting to her was Erica Pange, Operations Vice President. Ross Moss and Cal Wiser were Pange’s assistants. Moss was to handle the product side of things – dealing with sales, brokers, attorneys, title companies, and the like. Wiser was to manage the IT issues, reporting, daily processing, and accounting. Moss and Wiser together put policies, procedures, forms, reporting, and daily processing parameters in place. The residential construction lending management team was ready.

The bank had never attempted as complex a new product offering as this, and the board of directors knew its timely implementation was going to require a lot of work by a goodly number of the staff. Forsaking their historic conservative approach to a new product introduction, they gave Gepo only six months to launch it. She countered with a request for a one year implementation schedule, feeling strongly that not enough time was being given to institute the procedures, systems and controls necessary to ensure the safety of the bank. She worried that a weakness in the processes was going to be found and taken advantage of. Behind closed doors, her request was laughed at by the board of directors. It’s a loan for crying out loud. We’ve been lending forever, was one comment. From their perspective, even six months seemed unduly long. Officially she was simply told, ‘no’.

Gepo started working on the IT issues, product definitions and pricing, and sales and operations coordination. Her experience proved to be the determining factor, and thanks to her team’s almost superhuman effort, the bank launched the product by the deadline. It was immediately successful, and within the two months of going live with the northeast and southeast regions, the remaining midwest, southwest and west regions were added.

Chapter 2

The first year following the introduction of the construction lending product went spectacularly well. The number of loans submitted and approved far exceeded the goals. Interest and fee income were well above projections. The bank had its best year ever. Thanks in large part to the construction loan product, its stock rose an astonishing thirty-eight percent. Gagre and the board of directors were exceedingly happy, and much wealthier.

As far as Donald Gagre was concerned, Nixon’s personal stock rose as a result; Ives’ did not. Being in charge of the departments which made money, Gagre regarded Nixon’s efforts as more beneficial to the bank, and to him. Income and glamour always get credited to the front lines, not the backrooms. Ives backroom departments did not generate income; on the contrary, they were, as always, expenses to the bank. Ives was ignorant of Gagre’s feelings, thinking that Gagre’s word was as good as gold. Soon, he was going to be ‘the man’.

And why shouldn’t he be? Inside the bank, Ives had taken credit for the success of the new loan offering. Externally, he had most people believing that he was a pillar of the community. At one time or other he served on the boards of The United Way, the Connecticut Memorial General Hospital, The Cancer Society, the Connecticut Business Guild, and numerous other organizations. Married to the lovely Veronica Belgin, heiress to the New England Tobacco Company fortune, they were the parents of twins Brian, Jr., and Elizabeth, both of whom were Ivy League scholarship winners. Ives felt that he was respected by everyone in the community, and was, in fact, as well known throughout the state as the University of Connecticut varsity basketball coaches. Being charismatic, tall, handsome, and muscular, helped with his popularity as well.

§

 We did very well this past year! Donald Gagre crowed as he began his opening remarks to the board of directors on the one year anniversary of the product’s introduction. See how much money we made! he bragged. As the presentation continued, he intoned, Thanks to my brilliant leadership, and some work by Elliot Nixon, we are all wealthier than anticipated. Let’s give recognition to the employees who made this our best year ever, our sales staff, headed by Elliot!

After a moment of stunned silence, Gagre said again, Come on, we need to recognize Elliot’s work! If it wasn’t for him, acting under my supervision and direction, we could not have had such a banner year. To reward him, I want you to promote him to the presidency and as Chief Executive Officer when I retire.

Now doubly stunned, the board remained quiet. Finally, Jay Halperin asked, What about your promise to Brian Ives that he was going to get that promotion? If not Ives, why is Nixon being promoted instead of me? I’ve done as much as anyone around here.

Initially ignoring the first question, Gagre continued. Our assets grew by thirty-three per cent, and our earnings rose seventy-three percent this past year. Elliot had a large part in that success, under my direction and leadership of course, and we need to reward him. I cannot see rewarding someone who heads up the back room groups. It makes no sense. Jay, you had little to do with our new product and its success. Don’t be ridiculous. You should not be rewarded for it.

Clearly, if it wasn’t for Brian’s efforts, and his team’s, we could not possibly have been as successful as we were. Plus, you have at least a verbal contract with him, don’t you? Halperin countered. As for me, I have run this bank while Nixon and Ives were spending all their time on the loan product.

That is nonsense. Talk is cheap. I should know. I’ve decided to reward based on results, results Elliot alone provided. So let’s vote. All those in favor….

Wait just a minute, Donald, Halperin persisted. You told Brian that the jobs were his. I think I deserve the positions more than he or Nixon, but Ives can turn around and sue the bank. He has done nothing to breach the verbal contract you entered into. You cannot do this.

Poppycock. I can do anything I want. My grandfather founded this bank. I’m the President and CEO for cripes sakes! I’ll just tell Ives that he heard wrong, that his performance doesn’t warrant the promotion, and as far as anyone else is concerned, like you Jay, you weren’t in the room at the time, so how do you know what I said to Ives?

I, we the board, know what you said because you told us.

Oh, that. Well that was your misunderstanding. I never promised Ives anything.

I know I’m a lot richer because of the success of the construction loan product, Halperin said. For that I am pleased. However, I am deeply troubled by your statements here today, Donald. If we cannot believe what you tell us, then how are we supposed to function properly? You can’t tell us today that you did not promise Ives the jobs, because you did.

I’m getting a little tired of this, Halperin. How’s this? We promote Elliot, and give everyone on the board some extra cash? Instead of the $1,000,000 bonus that we were going to give the staff, you know, the little people, let’s divvy that up amongst us! Gagre offered. Hell, I’m making so much money this year I won’t even take my share. How does that sound?

It sounds like bribery, Halperin answered.

It is. I promise you, Halperin, you will not become president and CEO.

Considering this, Halperin answered, Why didn’t you say so in the first place? Elliot will be a fine president! Does that mean that the staff gets no bonus at all this year?

That’s what I meant, but it will be a problem. We’ve spoiled them over the years. Let’s see, we gave everyone a bonus of $87.13 before taxes last year. I’ve got it! We’ll give them $100 this year. That should keep everyone happy. What do you think? Gagre asked.

The board voted unanimously to promote Elliot Nixon upon Gagre’s retirement, and to take the $1,000,000 for themselves. They also voted to give the employees $80 before taxes in appreciation of the banner year.

§

After the meeting, Gagre had his secretary call Ives to his office. As a young man, Gagre was passably handsome, with a round face, obtuse brown eyes and hair, plump fingers, and a large smile. Now, with his advancing age, he was comically pathetic in appearance. What remained of his brown hair was combed over both from the left side to the right, and from back to front, giving the appearance of an ill-kempt, interwoven placemat sitting atop his head. Added weight made his eyes almost disappear behind folds of fat, and his portly cheeks made it seem as though he had golf balls in his mouth. His fingers now resembled kielbasas, and his high pitched, whiny voice had only gotten more grating to the ear. Ives was in a good mood when he entered Gagre’s office.

Brian, the board and I have decided to appoint Elliot to the presidency and as CEO when I retire. We want to maximize the outstanding publicity we are getting now due to our success last year, and feel that making this announcement at this time will further embellish our position with the market and our investors. I wanted to let you know before the announcement is made.

Ives stood frozen for a moment, felt his good humor leave him and anger, shock, disbelief and disappointment enter his body. What? What are you talking about? You can’t be serious. I don’t understand, Donald. What do you mean Elliot is going to be promoted? What happened to your promise when you hired me? You told me that I will become the president and CEO when you retire! 

I recall that I said it might happen, depending on the bank’s performance, as well as yours. In my estimation, and the board’s, your performance has not been on par with Elliot’s, replied Gagre, who was now sweating noticeably.

 Donald, the discussion back then was not what you just stated. You said then that I will become president and CEO, without conditions. It was the reason I came here to Great Dominion.

Ives, you aren’t calling me a liar, are you? Gagre demanded as the sweat now rolled from his forehead towards his eyes.

No, of course not; I’m reminding you of the discussion as it happened. We’ve talked about it for years, said Ives.

Gagre, knowing what Ives was saying was true, decided on ending the discussion. Ives, the decision has been made. I understand you might be disappointed, but you now need to decide if you can continue to work here for me and then Nixon. Think about it and let me know your decision on Monday.  It’s nothing personal, Ives. It’s just business.

Momentarily speechless, Ives then exploded. I might be disappointed? It’s nothing personal? We have an agreement; no we have a verbal contract. I did nothing to merit its dissolution. I intend to make this very personal, Donald. I’m going to sue you for breach of contract!

Looking now as though he just came out of a sauna, with sweat soaking his clothes, Gagre yelled back, It will be my word against yours. Who do you think will win that battle? Me, that’s who! Suck it up. You lost.

Ives sat down in a chair facing Gagre. Reflecting for a moment, Ives realized that he was probably correct. Although everyone in state banking circles knew Ives would succeed Gagre, there was nothing in writing, and Gagre could say that it was a misunderstanding.  At the very least, Ives saw a protracted legal battle ensuing if he chose to fight this. Leaning over Gagre’s desk, Ives whispered to him, I think you are a deceitful bastard. I will decide my course of action over the weekend. I will not go quietly. You have made a big mistake. You should not have lied to me.  I will bring you down, Donald.  Ives left the room and slammed the door in disgust.

What a friggin loser. Too bad he doesn’t know the real reason I’m passing him over. Gagre had seen Ives in the company of a woman who was not his wife, a woman Gagre himself wanted to cheat on his wife with. The woman had turned down Gagre’s advances, and Gagre was unforgiving. When he saw Ives with her, he became furious. I’ll take care of you both. Brian, you won’t get the job, and the slut won’t get the condo on Brookline Drive that I thought of buying.

§

When he returned to his office, Ives was shaking with anger. That lying, whining, stupid son of a bitch! Nothing personal indeed; he doesn’t know who he’s dealing with. What the hell happened to change Gagre’s mind? How did Nixon manage to get this appointment? Is Nixon behind this? It can’t be just the outstanding bank earnings, can it? Why is he doing this? He sat down. It was Friday afternoon. Something about this turn of events did not make sense. He had been close to Gagre since coming to Great Dominion, and was being groomed by him. He had the feeling that Gagre considered him to be the son he never had. Why did I not see this coming? Calming down, he decided against acting hastily and resigning then and there, or worse, strangling the son of a bitch. I will instead take the weekend to re-group and come up with a plan of action, and I’ll talk to Ron.

Chapter 3

Ron Borden and Ives had served in the Gulf War together. They both enjoyed the service. Patriotism and service to country aside, they did their jobs well, without compunction. They enjoyed killing, plain and simple. When the war ended, it took them to awhile to adjust to peacetime mores.

They met by accident. Both caught a flight leaving Germany bound for JFK in New York for some holiday rest and relaxation. They sat next to each other and began swapping stories. They found they shared many similar likes and dislikes, as well as that they both lived in Connecticut. Both had graduated from college with Masters Degrees in Business, both enlisted to serve in the war, and both were going to be searching for jobs after their tour of duty ended. Both were muscular and in top physical condition. Borden had the body of a football player at 6’3 and 255 pounds, and was an expert in martial arts and in using firearms. Ives had a build more like a basketball player at 6’5 and 230 pounds, and was also an expert with firearms.

When their enlistments ended, Ives went into banking, Borden into security. In 2000, they formed several shell companies which hid their ownership in the Gilded Deck, ostensibly a supper club but actually a small, illegal, gambling room in Brewster, NY. The club was an immediate success, and between their jobs and the club, they both lived comfortably.

Borden ran the club and handled the tougher day-to-day casino issues. Mostly he dealt with sore losers, who became agitated and aggressive because they could not cover their losses, or gamblers who became drunk and unruly. His background in law enforcement, first as a cop, then as a consultant to security firms, taught him how to handle these situations discretely.

Ives had to stay away from the club. As a banker, and with his status in the community, it was a necessity. His behavior had to be above reproach. Occasionally he viewed the security films from the club and watched the gamblers. He laughed whenever he recognized prominent citizens, including bankers, placing bets.

Of the two, Ives was the more serious, always thinking ahead, always worrying about the details. Borden, twice divorced, mostly thought about bedding the hottest babe that showed up at the casino that night. He left the worrying to Ives.

§

Ives found the house empty when he got home from his disastrous meeting with Gagre. The kids were off at college, and Veronica had left a message that she was going to be at a symphony orchestra business meeting and should be home by 7:00 p.m. Ives called Borden at his office at the club.

Ron, we need to meet. Can you be at my house in an hour? he asked.

Why, what’s up? I’m pretty busy right now. Can it wait until later?

No, it can’t. I just got word from Gagre that I won’t become the bank president. I want to kill that son of a bitch.

Whoa there, big fella, don’t do anything rash. I’ll leave here in a few minutes.

An hour later, Borden arrived. He knocked on the door and entered. Brian, where are you? he asked.

I'm in the kitchen getting something to eat. Make yourself a sandwich. We have all kinds of stuff here - chicken, ham, egg salad, and grouper. Veronica must be having some of high society over tomorrow, Ives said.

Seeing what was laid out on the refrigerator shelves, Borden said, Don’t think I’ll have a problem putting something together. So what the hell happened? Why did Gagre go back on his promise to you? Don’t you have something in writing?

No, a handshake sealed the deal. I don’t know why he is doing this. I’ve decided not to take it lying down. I need to do something that will send Gagre to prison, or at the least, make him resign in disgrace, Ives practically shouted. He took a deep breath and waited a moment before continuing. Calmed and reflective now, he said, This bank has been run by someone in his family for three generations. Disgrace will likely be more than he can handle. It will do him in.

Borden nodded and said, Do you have any ideas on how to do this?

I have one. I need you to listen to it and tell me what you think. Make no mistake; I want the offices of president and CEO I was promised. I will take care of both Gagre and Nixon. Nothing will stop me, nothing. You know what I mean? Ives asked as he made a gesture of slitting someone’s throat.

"Yeah, I get it, Brian. You want to be the president and CEO like you were promised. I’m clear on that. You are only blowing off steam, right? You aren’t really going to kill anyone. Remember, we’re not in uniform anymore. You are a pillar of the community. You are married to a beautiful woman and you have two great kids. You cheat on your wife, but what banking executive doesn’t? Plus, you haven’t killed anyone since the war. You are probably too soft now to do it," he said, only half kidding.

Maybe I’ll start with you just to get toughened up.

Borden smiled.  What have you come up with so far? he asked.

I’ve been studying the real estate market for our construction loan product. This thing is going better than we expected. New home construction continues to be strong nationwide and it looks like it will continue for some time. There’s much more money for the bank to make. If we can get people whom we control in the right spots, I think we can set Gagre and Nixon up. We can use our own corrupt builders to submit false funding requests, inspectors who will falsify reports, appraisers who will inflate construction values and underwriters who will approve loans without regard for underwriting guidelines and loan policies. There are a myriad of possibilities. Nixon doesn’t have to know anyone involved or directly approve any of the transactions, because if we can cause enough losses, it won’t matter. He will be the one to suffer. Just as he’s the winner now, he’ll be the loser then. Obviously we will have to be very careful, but I know that if we set this up the right way, we’ll pin it on him, said Ives.

Borden, unconvinced, said, This sounds like a bad idea. Even though I know little about banking, it sounds like there are too many places your plan can go wrong. And what about Gagre; how will you even things with him?

Ives explained, Under our construction lending procedures, a broker sends us a loan request package. We enter the information into our loan software and have it underwritten. If it’s approved, we try to have a closing on it as soon as possible. Then we wait for construction to begin. Once it does, we wait for draw requests, you know, advances, to come in and fund them based on the results of an inspection. If , however, we interject our associates into some of these steps along the way, then we can funnel monies to people who have no right to them. I think we can divert millions this way. Then, I can swoop in, pretend to do an analysis, claim to detect what happened, and report the findings. If we do this right, the blame will fall on Nixon and he will be history. Then the fallout to the bank through loss of investor confidence and a shaky financial footing will cause the board to blame someone. Smiling, he continued, That someone will be Gagre. He will be fired or have to resign, and I will be installed as president and CEO.

Brian, if this is done wrong we will be the ones to get caught and go to jail for fraud, not Nixon. The question I have is why will anyone want to be a part of this? Even if they did, if they got caught, won’t they roll over on you? And it will be a tall order to get Nixon arrested and Gagre dismissed by the board. I thought you told me the board was made up of a bunch of toadies, and that it will never go against Gagre.

Don’t forget, this is Nixon’s product now. It doesn’t matter how hard I worked on the project. My role doesn’t matter. I guess it never did. Believe me, Nixon will be blamed. As for the board members, they are toadies, but they all are driven by money. I’m confident that if I can prove to them how much Gagre’s fiasco, which I will initiate, is costing them, they will remove him. As for why people will want to participate-they won’t be able to refuse the money offered, and they will never get caught.

Borden studied his friend for a few minutes and said, What kind of money will they get if they participate?

A million dollars.

What?  That’s crazy. What they will be doing doesn’t merit getting paid a million dollars. And where the hell can you get that kind of money?

If I can’t figure out how to get it from the bank, it will come from my own money.

You are going to defraud the bank through this insane scheme of yours, and steal millions more to accomplish it? Well at least you’ve still got balls. Too bad they’ve taken the place of your brains. And what are you saying – that you have that kind of money? Been holding out on me? Brian, don’t do this. It’s a stupid idea. We’ll get caught sooner or later.

Done right, we never get caught, Ives interrupted. We’re smart enough and tough enough to make it work. He waited a minute to let Borden absorb the determination behind his words. Then when I’m president, Ives continued, I’ll get you in a cushy job as the bank’s security officer. That’s for starters. Once I am president and CEO for a few years, I intend on running for governor; from there, U.S. Senator. What better way to ensure a life of power and adoration, to indulge in sleaze and corruption, than to be the president of a bank or an elected official from the great state of Connecticut? Ives asked rhetorically. You will come with me every step of the way. Oh, one thing. I cannot be involved in dealing directly with anyone we bring in as accomplices. They cannot know my role in this. Their connection to the bank has to be a dead end in case anything goes wrong. Since you don’t work here and no one at the bank has met you, you will be that dead end. When you work with anyone you don’t know, to make it more difficult to connect you to this plan, you should use an alias. Use Russ Bunker.  Wear something to change your appearance, too, like a wig and a mustache.

 Borden nodded and said nothing.

 Don’t worry, they won’t recognize you, said Ives with a smile.

Borden did not return the smile. He felt trouble coming.  He wants to do all this because he didn’t get a promotion, and, he cannot be involved? Where the hell does that leave me?

Chapter 4

The following Monday morning, Ives met with Gagre and told him, I deserve the promotions you promised me, and you know it. I still don’t understand why you are doing this, but I have decided to work with you and Nixon.

Make sure that you do. I need team players and a staff who will honor commitments, Gagre said, as if he had a clue as to what that meant.

Ives hoped to have a forthright discussion with Gagre, as they used to, but the coolness, determination, and distance evident on Friday had not changed. A discussion now was undoubtedly going to quickly turn into an argument. I don’t think I will ever know the real reason he changed his mind about making me president and CEO. Well, too bad. The hell with him; I will make him regret what he’s done.

He left Gagre’s office, called Borden, and gave him the names of contacts to be used in the scam.

§

The heat was building that morning in Cape Coral, Florida. Umberto Bert Ponzillo was in his company car heading for work. He was a vice president of the Getinn, Reale, Rich Appraisal Company. His company handled real estate appraisals for banks, insurance companies, and brokers. His area of responsibility encompassed the cities of Fort Myers, Cape Coral, and Naples. The company was well known in lending circles, and had been added to the Great Dominion’s list of approved appraisers by its sales team. Today Ponzillo was meeting with the president of Sun Bright Mortgage Brokers to discuss establishing a relationship with them. A large tract of land was being developed in Cape Coral and Sun Bright needed appraisers who could provide their services with quick turn times. Bert’s cell phone rang.

Ponzillo.

Hey man, it’s Borden. How are things?

Hey! What’s up? I haven’t heard from you in awhile," said Bert.

Yeah, I know. I’ve been busy. I need you to do something for me. I’ll make it worth your while, Borden answered.

Bert laughed. He knew whenever Borden said that, it did not bode well. Let me call you back in an hour or so. I’m meeting with a new client.

Borden and Ponzillo had served in the same unit in the war. Ponzillo was a tough kid from Brooklyn who enlisted in the Army before the Gulf War broke out. He had worked his way up to the rank of sergeant major and was well liked by his men, mainly because he kept them alive. Most of the soldiers were respectful of authority, and kept an eye on each other; unfortunately, there were a couple of guys in their unit who were not wired properly. These guys could not be trusted; if you had a guy like Ponzillo to watch your back, as Major Borden did, you felt better about things. Ives had given Borden Ponzillo’s name as a possible scam participant, and Borden was pleased at the prospect of working again with his friend.

§

Borden’s second contact was Mindy Lawmore, a friend of Steve Ploska’s, who was one of Ives’ friendly competitors. Lawmore was a broker in the Phoenix area who was also licensed in Texas and Florida. Ploska met her when they attended a mortgage convention in Los Angeles a few years earlier. Finding each other at the hotel bar the night after a session ended, Ploska and Lawmore struck up a conversation. They were instantly attracted to each other, and after they had a few drinks while they discussed all things under the sun, they went to Lawmore’s room to spend the rest of the night.

Ploska found out that she had just gotten her broker’s license and was eager to make some serious cash. She had beauty and brains as well and a hint of mischievousness that appealed to him. He promised to send some action her way as soon as he heard of a bank doing that line of business, even if it was a competitor.

Ploska had mentioned this incident to Ives and told him that Mindy was ‘hot, very hot’. You should call her sometime, for business and perhaps some pleasure.

Independently, the bank’s sales team had gotten her company’s name onto the list of approved brokers. It was helpful to Ives that it was, since he had nothing to do with it, and her selection from the list was then a routine matter.

§

Borden dialed the number. As Ives instructed, he used his alias.

Hello, Mindy answered.

Hello Mindy, this is Russ Bunker, a friend of Steve Ploska’s. How are things in Phoenix?

Things are fine, Russ, she purred. How are you?

I’m great thanks. Steve sends his regards. This lady does sound hot, just like Brian said.

I haven’t seen Steve in a while. Say hello for me, Russ. So, how can I help you? Mindy asked.

Borden became entranced by the dulcet tone of her voice. He had to prod himself to respond. Uh, our bank, Great Dominion, has a new construction loan product on the market. We want to test our procedures to make sure that we can detect inappropriate activity, and we need someone who can cut corners a little, as part of the test. For example, someone, I hope it’s you, will refer questionable borrowers and builders to the bank, and the bank will use their activity to test its controls. You will make some serious money doing this. Does it sound like anything you might be interested in?

This nice sounding man was talking crazy, and Mindy took a moment to respond. First, I’ve never heard of Great Dominion. Second, why does the bank want me to cut corners? Third, you say you know Steve, but how do I know that you do? This all sounds screwy. Put yourself in my position. Some guy calls me out of the blue, offering me the chance to make some big money by doing something that sounds iffy, and you want to know if I am interested. No, I’m not, she answered. Good-bye.

Wait! Don’t hang up. Mindy, what you say makes a lot of sense. Let me give you more information. We’re a Connecticut bank, been in business forever, and we’re solid as a rock. Ask around. As for not knowing me, I can’t wait to get on a plane and meet you. As to the iffy part, yes, as a test, we want you to try and do something we hope we can detect. That way, as I said, we’ll know if we have proper controls in place.

Yes, but what you want me to do sounds crazy, and probably illegal. In spite of what sounded like a mistake to get involved in, the thought of making some extra cash interested her. She was piqued by his proposal, in every sense of the word. She continued, If it’s really nothing serious, I might want to hear more, providing you can convince me that this isn’t something I’ll regret. As you must know, the construction market has really taken off here in Arizona, as well as in Texas and Florida. There’s good, legitimate money to be made. A lot of shady cash might be OK, too, as long as it won’t land me in jail or cost me my license. Are you sure it’s nothing like that?

No, no, of course not. Like I said, it’s just part of a test. It’s nothing shady.

When will this start?

Within two weeks. We’re just waiting for our ‘no-income verification’ product to be approved, and that should happen next week. In the meantime, start thinking of the borrowers and builders you know of that we can use. Sound good?

Two weeks should give me time to check out your bank. All right, I’ll get to work right away, and if my research and your visit confirm what you say, then we’ll be ready. When will I hear from you again?

I’ll call you tomorrow. We can get down to specifics then. Great talking to you and I’m glad you want to do this.

Tentatively, I want to do this, she reminded him. I look forward to your call and to meeting you soon.

Bye. I can’t wait to see you in person, too.  Attractive and smart; I’m going to enjoy this.

§

Borden’s final call was to Jerome Bidaqie from Inspection Right, a national company that hired local inspectors to provide construction inspections at homebuilding sites. Ives had gotten his name from an approved database of inspection companies used by Great Dominion.

Bidaqie was based in Texas, another hot spot for new home building. This was the only cold call Borden was going to have to make, meaning that neither Ives nor Borden knew Jerome or anyone else from his company. All Borden wanted to do was to set up a meeting with Bidaqie to see if he could be counted on to play a part in the scheme.

Borden got him on the first try.

Hello, Jerome Bidaqie here, how may I help you? asked Jerome with a Texas drawl.

Well howdy there Jerome, this is Russ Bunker calling from Great Dominion Bank in Connecticut. How’s the weather down in Forth Worth today? Ron responded.

The air is thick as molasses on a winter mornin’ in Connecticut, Jerome chuckled in response. What can I do for ya, Russ?

Thick as molasses on a winter mornin’ in Connecticut? Who writes this guy’s dialog? I was hoping to meet with you to see if you will do some home construction loan inspections for us, Jerome. We’re lending nationwide now and we’re starting to see a lot of activity. These inspections will push, maybe exceed, the boundaries of accuracy. Is that something you can do? Ron asked.

Like cheating, you mean? Ha, ha, you are a funny man, Russ. Who knows, though? Maybe we can do something with y’all. So happens I’m coming up to New York on Wednesday. I might as well shoot up to Connecticut when I’m done and hear more. How’s that sound? Jerome answered.

Sounds great. After a few minutes more of pleasantries they set a meeting time and hung up.

 Ives called. How are things going?

Good. Lawmore sounds intriguing. I meet with Jerome Bidaqie Wednesday. I think he might be amenable to working with us. Bert should be calling me back soon, Borden replied. How about you? Got anybody lined up yet?

Matter of fact, I do. A guy by the name of Michael Summo, an underwriter, will have to work with us. Call me when you’ve talked to Bert, Ives said.

§

It wasn’t long before Bert Ponzillo called.

Hey Ron, how the hell are you? I haven’t seen you since the last time. You married yet? he shouted. Bert was always loud.

Hell no, I’m not married. I’m having too much fun. Plus I haven’t found the right woman yet. How’s that cute wife of yours? he asked.

Never mind about her. You keep yours eyes and hands off her, Bert answered.

Borden laughed. He knew Bert was busting his chops. One thing Borden never did was mess around with a friend’s wife; anyone else’s, yeah, but not a friend’s. After all, he had scruples.

Bert, I need you to help me out.

Doing what?

We need someone who can provide some aggressive appraisals based on construction plans and specifications for new home loans. And we need someone who could work with certain builders as well. There is a lot of money to be made doing this, Borden explained. Whadda you think? Anything you might like?

Not if I get caught! Ponzillo responded. And who is ‘we’?

You won’t get caught. You will use comparisons that will justify what you’ve done. Here’s what’s happening.  He explained what the bank was secretly doing, as he had to Lawmore. Any chance you can come here to Connecticut so I can go over this with you in more detail? Borden asked.

How much money is ‘a lot of money’?

Enough to make it worthwhile. Trust me.

I’ll be up on Thursday. 

Chapter 5

Borden’s initial skepticism about the plan worried Ives. He thought it through again. The new lending products Great Dominion offered paid for new home construction through loan advance requests, but only for work done at the time of an inspection. If the borrower qualified for the loan, a budget was set up for the project and money was allocated to line items such as the foundation, framing, plumbing, electrical, and finish work. The builder did work, money to pay for that work was requested, and a licensed inspector was sent to verify that the work had been done. Once the bank got the inspector’s report stating how much work had been done, an advance was recorded on the borrower’s loan and the money was sent out. This process continued until the construction was finished and the project was certified to be complete. The loan was fully advanced at that time, and it converted to a permanent mortgage loan shortly thereafter.

If the line item for the house foundation was $100,000, and the builder or borrower requested that money, a $100,000 advance would be processed if the inspector stated that the foundation work was indeed complete. However, if the inspector was dishonest and only one-half of the work was done, but he certified that it was complete, the $100,000 was still advanced, leaving the bank liable for the $50,000 of incomplete work when the fraud was discovered.

Under Ives’ plan, this was one way that money would be sent to individuals who had no business getting it, or as above, sent in amounts in excess of the work done. Using dishonest inspectors and builders was only a part of the plan. If he also got dishonest borrowers, appraisers, brokers and underwriters inserted into the loan submission, approval, and funding request steps, he was going to accomplish the goal of defrauding the bank. And, if he involved enough loans in the scheme, millions of dollars were going to be paid out fraudulently. He was then going to produce reports which ‘discovered’ the problem, blame what happened on Nixon and Gagre, and ultimately become president and CEO.

He knew that in general, construction lending is riskier than other loan types, because of possible unavailability of materials and other delays, cost overruns, builder experience and reliability, loan complexity, and proper pricing. Ives also knew that any of these inherent possibilities could happen to any of the loans he was selecting to misappropriate funds from, and if they did, attention was going to be drawn to them, which he naturally did not want. For him to succeed, his illegal activity had to go on undetected. He was willing to go forward with his plan, however, because he felt that the chance of the inherent risks coming into play were small and because he desperately wanted to ruin Gagre and get the jobs he was promised. The contacts Borden was making were going to establish the network of thieves that Ives needed. Ponzillo was going to provide inflated appraised values to properties; Lawmore was going to furnish the bank with a list of unscrupulous borrowers and builders; Bidaqie was to submit bogus inspection results and Michael Summo was going to approve loans which had no business seeing the light of day. That was the plan. It will work, Ives was convinced, because the three non-bank employees will believe the story about the bank secretly testing the processes associated with this new loan product, and because, except for Summo, they were each to be given a million dollars. He didn’t have that kind of money of his own; he had told Borden that to placate him. Now all Ives had to do was figure out how he was going to steal it from the bank, or from his wife.

§

The next morning, Borden called Lawmore.

Hello, this is Mindy. How may I help you?

Hi Mindy, Russ Bunker calling you back. I’ve been thinking of our conversation all night.

Me too! I’ve been waiting for your call, she said huskily.

Hearing her voice, Ron almost forgot why he was calling. Recovering, he said, I have some more information on how you can help us. Let’s get back to builders in your area. You must know some who are, shall we say, not quite as reputable as others.

…Yes, I do, but …I’m not sure I want to pursue this after all, she said, sounding timid and reluctant to continue.

Borden reacted quickly. I know this may sound funny, Mindy, but I need someone who can try to beat the system. That is, someone who, say, might request money for work he didn’t do. You’re undoubtedly asking yourself, why does a bank want to purposely lose money? The answer is because we want to test our controls and see how quickly we can spot the theft. We want to be sure that we have the proper systems and controls in place to detect fraud in a timely fashion. We have, of course, put such controls in place and have tested them ad nauseum. Now, we need to take it a step further to determine if they work in the real world. As you know, this is a brand new product and process for us, and we have considerable exposure. If the people you find for us return the money they get in this manner, no charges will be filed. We will keep your name out of the mix in case anything went wrong. That way you will be protected. You give some names and our sales staff will make the contacts. The builders will never know you gave us their names. For your troubles, we will pay you a million dollars. What do you think now?

I don’t know, Russ. I never heard of such a thing, she volunteered. You know, it almost makes sense. What better way to test your controls than by doing it live? I never heard of a bank taking this tack, though. It seems highly irregular, and … weird.

Hey, I understand. But don’t forget, banks are under a lot of pressure to improve the bottom line and they are willing to try new things. Maybe this will put your mind more at ease: the executive management of the bank wants this live testing to go forward. Does this help? Borden asked.

Yes, it helps, as well as the money. It’s a lot for such little work, though. That makes this all the more suspicious, Russ.

The bank is paying that much to show how serious it is about testing its controls. We need to be sure we can spot malfeasance. This product has become an integral part of our loan portfolio.

She considered this information a moment before asking, Russ, how can I get a builder to cheat like this?

You select some builders who, based on their reputations, will act this way, because it is the way they have operated, or been accused of operating, in the past.

After a moment of quiet deliberation, Mindy answered, I made some calls after we hung up yesterday and checked on your bank. You seem legitimate. Let me check out some of the builders here and see who I might find. When will I get paid?

 Select at least six builders. You get paid one third when you give us the list, the other two thirds when they have sent in padded requests for funding.

Will you be delivering the first payment in person?

Oh yeah.

§

As soon as Borden told him that Lawmore agreed to be a scheme participant, Ives made a call. Skip, I need you to do something special for me.

During the war, Borden had introduced Ives to Skip Class. Reynaldo Angel Skip Class, the product of a healthy marriage and loving parents, likely was born with some of the circuits in his brain miswired. If there is such a thing as a part-time psychopath, he is one. Early on, he got in trouble at school for beating up his schoolmates. He was in trouble often enough that he missed dozens of classes. Where’s Reynaldo? Oh, he must be in the principal’s office; guess he will be ‘skipping’ class again. It didn’t take long for his nickname to result. Skip Class was also a large man at six feet three inches, 248 pounds. He had many talents. He could moonwalk like Michael Jackson used to, he could recognize a socialist by his clothes, and he also could kill someone without compunction and without leaving evidence behind. He met Ron Borden during the Gulf War where he impressed Borden with his killing skills. He was efficient, enthusiastic, and he enjoyed it. Borden witnessed Class’ abilities on several occasions. Slitting throats, breaking necks, making sniper shots, poisoning, stealth, physical destruction, it didn’t matter; he was proficient in all manner of tracking and killing his prey.

After the service, he set himself up as a private investigator and established a successful business. Because of his skills, the killings he had done for his clients never resulted in his arrest. The police suspected him in several cases, but never had enough evidence to arrest him. He was not only lethal, he was clever.

§

During their conversation, Ives told Class that there was a guy who was into him for some serious cash. Ives had given him several chances to make good on the debt, and the guy laughed it off. I can’t run a casino and have a guy out there owing me money, pretending he doesn’t understand the consequences of his actions, he had told Class. I need to set an example. I need you to make the problem go away. Above all, keep this quiet; I don’t want Borden to know.

 Ives and Class agreed on a fee of $5,000. Ives supplied Class with a picture and the address of Steve Ploska. Ploska didn’t owe Ives money. He had never even been to Ives’ restaurant. He just happened to give Ives the name of one of the future collaborators in the fraud. Unwittingly Ploska became a threat to Ives. For his own protection, Ives reasoned that he had to get rid of Ploska. Death can come at you from many ways. Ploska was going to die because he made an innocent remark to Ives, about a woman he knew for three days.

§

Shortly after talking to Lawmore, and getting her to agree to participate in the plan, Borden got a call from Bidaqie. His flight had landed 45 minutes earlier and he was now in a rental car heading towards Waterbury.

Howdy, Russ, Jerome Bidaqie here. Give me directions on how to get to you.

Borden told him how to get to the Bronze Medal Restaurant, named after the proprietor’s finish in the 1988 Olympics in table tennis. Borden was waiting at the bar when a very large man with a cowboy hat walked in. In spite of his size, he felt suddenly small. It had to be Bidaqie; he got up and walked over to him.

Howdy Jerome, he said. I’m Russ. Pleasure to meet y’all.

Well howdy, Russ. The pleasure is mine. Good to finally be here. The drive up from New York seemed long and the folks in this part of the country don’t seem quite as friendly as I’m used to. It’s been a long day already.

Let’s see if we can make the rest of the day better for y’all, Russ replied with a smile. Let’s sit at this table.

Borden beckoned the waitress. Her name tag said ‘Darlene’. She brought menus with her. Looking up, Bidaqie saw Darlene and said, Darlene, honey, bring me a double shot of ‘Old Gran-Dad’. I surely appreciate it. Turning to Borden, he asked, What will you be havin’ Russ?

Bring me a shot of tequila and a Corona, Darlene. Put them all on my tab.

Darlene responded, Sure thing gentlemen. I’ll bring them right over. I’ll take your lunch order when I come back. She made sure to wiggle her ample ass as she left. Neither man noticed.

Jerome, it is real good to meet you. I thought I’d go over what’s going on and how you can help, before we relax and enjoy our meal. OK with you?

Why sure, Russ. Go right ahead.

"I represent Great Dominion Bank located here in Waterbury. The bank has launched a new nationwide residential construction loan program. Because the product is new and potentially more risky than other types of lending, and because the bank has been just a regional lender, not a national one, they want to make sure that they have excellent controls in place to prevent