Chapter 18 - THE DEADLOCK
Crescent House had three remaining venues worth keeping.
Selling one would solve debt.
Dilution would solve debt.
Margaret blocked dilution.
Outside investors resisted another sale.
Wesley’s shares could break tie if he voted against his mother.
He owned 18%? We haven't set share percentages. Need establish. Let's set earlier? We didn't. Now: Margaret 52%, Wesley 28%, outside investors 20%. If Margaret majority, Wesley can't break tie. But board governance may require supermajority for major sale/issuance. Let's set voting:
Margaret economic 52%, Wesley 28%, two outside 20%. New equity issuance requires 70%. Margaret can block. Asset sale above threshold needs 70%. Deadlock.
Board asks court due liquidity clause allowing judicial relief if inability to refinance threatens operations.
Wesley signed affidavit supporting Evergreen investment.
Against mother.
Margaret called him disloyal.
He answered:
“You put Nora’s house under this company without her consent. I helped. I’m not doing another family shortcut.”
That was growth.
Too late for marriage.
Useful for company.
Then Margaret removed him from a family foundation? Avoid trust. No.
She tried to amend voting agreement.
Blocked due litigation.
Then criminal trial date set six weeks ahead.
She requested continuance.
Denied after reasonable schedule.
Title case set after trial because criminal findings could inform but not bind all civil issues.
My house remained clouded.
June six months old.
I wanted to refinance part of house to renovate? No. No need.
But I received offer to sell because market strong.
Could not easily close.
That made lien concrete.
I had not planned to sell until a developer offered $5.1m.
I considered.
Why?
House had become contaminated emotionally.
Margaret called it family house.
Mortgage fraud.
Collar party.
Did I want June growing up there?
Maybe not.
But I refused to let fraud force sale.
I declined offer for now.
Choice.
Not trapped.
Then Wesley asked:
“If house clears, will you sell?”
“None of your business after divorce.”
He nodded.
Fair.
Divorce was moving slowly because fraud-related financial disclosures overlapped.
But property itself separate.
He did not claim ownership.
Good.
Then his criminal lawyer approached prosecutor with partial plea.
Wesley would admit:
He knew Nora had not authorized mortgage.
He delivered packet anyway.
He later tried to obtain ratification without full disclosure.
He did not personally forge.
In exchange conspiracy charge reduced to felony use of false instrument and attempted fraudulent ratification.
Sentencing with probation plus possible short custody? Given amount and planning, some custodial exposure.
Prosecutor considered.
Margaret refused any plea.
Mother and son strategies split.
If Wesley pleaded, he might testify against Margaret.
Would he?
He agonized.
I knew through legal filings, not private conversations.
Then he chose.
Plea.
He would testify truthfully if subpoenaed.
Margaret’s lawyer called him Judas in private email later produced? No need.
The family hierarchy cracked completely.
But Margaret still had trial.
May you like
And the company still had deadlock.
Nothing finished.
