Chapter 14 - CHARLES’S BUSINESS PROBLEM
The company was weaker than Charles admitted.
Not collapsing.
Overextended.
Two major hotel projects delayed.
Materials costs higher.
A client bankruptcy.
Company debt:
$14 million.
Manageable if contracts performed.
Dangerous if lenders lost confidence.
Charles wanted a new acquisition.
Cascade Medical Interiors.
Purchase price:
$7.8 million.
Independent directors hesitated.
Charles used Nina’s proxy vote to approve negotiations.
The acquisition required a personal/family guarantee package.
That was where my forged signature appeared again.
Not only proxy extension.
A “beneficiary acknowledgment” represented that I supported pledging certain trust distributions if needed.
I did not.
No money had yet been taken from Nina’s trust under that guarantee.
Important.
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But the document made lenders more comfortable.
Fraud can exist before loss completes.
