Daniel Ganninger - Icarus Investigations 01 - Flapjack (23 page)

Black Bear had
engaged in a classic case of expansion when the money was rolling in, and to fund their expansion dreams incurred a large amount of debt.  Now they didn’t have the money to cover the costs of doing business.  The companies they had acquired were just a money drain.  Nobody wanted to buy them.  A security company shouldn’t be trying to run an iron ore production facility in Russia, for example.  Black Bear had their hands in so many companies that it was difficult to track.  Most were foreign, which was attributing to Black Bear’s demise.  In order to stay solvent there had to be some creative accounting going on.

In each quarter
Black Bear showed a significant revenue growth, but it didn’t add up to what was really occurring.  Why hadn’t Wall Street caught on to this?  Most likely because Black Bear was doing a credible job of cooking the books, moving money between one entity to another each quarter, making it seem as if they were making money.  But that couldn’t last for long.  They were being driven by fear; the fear of going out of business, the fear of losing investors millions of dollars, and fear that the Securities and Exchange Commission could investigate them when the balance sheets didn’t add up. 

At this point they needed a huge infusion of money, and fast, to stay viable and solvent
, because they were hemorrhaging money at every turn.  They didn’t have the assets to cover their losses, and soon they would be out of money completely and bankrupt, or worse, sold off in pieces.  According to my rough calculations this would occur by year’s end.  I showed Galveston my numbers.

“
Yeah, they’re in a world of hurt.  They don’t have the money to cover their expenses, and they can’t borrow more because their credit is topped off,” I told him. 

It was also a classic case of corporate panic.  Business had been booming, then it went flat, and to compensate
, they spent more money.  But instead of gaining, they ended up losing more and more profit.  The executives were panicking, and picturing the loss of their mansions, sports cars, and power. 

“
Wait until you hear about our Senator friend,” Galveston told me.

“
I’m sure it’s a glowing report.  He helps all the sick children and works in a soup kitchen, doesn’t he.”

“
Yeah, and he steals welfare checks, and gets kickbacks for supplying the soup.  He’s a nasty little guy.  You wouldn’t know it from the crap he spews.  I read some of his comments, I felt like I had to take a shower afterwards.”

“
Great, another hypocritical politician,” I responded with disdain.

“
Seems Senator Eastman likes the ladies too.  I find it hard to believe they like him back.  This is what we found.”  Galveston scrolled through another screen on the computer.  “Eastman touts himself as an ardent environmentalist.  The problem is he’s invested in so many ‘green’ companies and has shamelessly shaped public policy for them.  He’s power hungry, no doubt about it.  As you know, he’s a career politician.  He’s on the Chairman of the Senate Energy Committee, and he sits on the board for Global Energy.  This ties him to Weston Chase,” Galveston reported.

“
He sure is one, big, walking conflict of interest,” I added.

“
Yeah and here’s the scary connection.  He used to be a high ranking member on the Senate Armed Services Committee, but was pushed off due to ‘political pressure’.  Possibly because of a midnight tryst.  While on this committee, he lobbied hard for an ease on restrictions of private security agencies involved in government contracts.  It is widely known that Black Bear was one of his primary political contributors, and they benefitted heavily from his work.  It’s rumored he got a stake in the company under the table.  Nobody can prove it though.  Eastman currently shows no obvious stake in the company.” 

I interrupted him.
  “But there are ways around that; off shore accounting, dummy investment companies, hedge funds.  These are all ways to hide an investment.”

“
Exactly,” Galveston answered.  “There’s one more very interesting tidbit of information that Alex found by chance.  In a meeting of the Energy Committee, Eastman introduced the plans for a bill that would virtually eliminate import taxes on investments in alternative energy.  This would allow companies to purchase their products with little to no import tariff.” 

I interrupted again.
  “This would allow companies to cut the prices of their products, thereby out-competing U.S. companies.  This would encourage investment with foreign companies that sold alternative energy solutions.  More importantly, alternative energy products would sell for a quarter of what they would from U.S. companies.  I can see the detractor’s side.  If this legislation was passed, it would harm the U.S. companies. They would have to compete with a foreign company on a level field.  Now, let’s say the oil demand was there, and everyone is hurting due to higher energy prices.  Here comes a product on the market that is good and reduces energy demand, the super battery.  Companies would be scrambling to buy this product that they can now get it at a reduced price because it can be offered by a foreign company at the same price as a U.S. company.  Maybe this foreign company is, oh, I don’t know, Ecomax.  The interest in such an incredible product would be tremendous.”

“
That to me is a smoking gun,” Galveston said.  And I agreed.

Imported products are
usually more expensive than the same products produced in the U.S.  That’s why imported beer from Holland is more pricey than good ‘ole Budweiser, and the same reason why Budweiser would be more expensive in Holland; (though I doubt they drink the stuff there).  If that same Dutch beer was produced here, it would be almost the same price.  There are some exceptions, like plastic toys or TV’s produced in China, Taiwan, or Mexico.  They can compete with U.S. companies due to their inexpensive labor costs and poor economic conditions.  We were referring to highly intricate and complicated energy supply systems, costing hundreds of thousands, to millions of dollars.  U.S. companies would quickly be outdone by their foreign counterparts without the import tariff.

The Senator’s plan
would make the cost of a Belgian wind turbine the same as one produced in Colorado, and it dealt only with alternative energy, nothing else.  The Colorado wind turbine company would have to lower their prices to compete, drastically damaging their bottom line. 

Black Bear appeared to be
creating the demand for oil and rising energy prices, while hiding in the background, waiting for people to panic.  Then, low and behold, a magnificent product will become available to all those gas seeking, energy guzzling Americans.  They would be able to import the product for the same price as if it were made in the States, erasing the risk of the prying eyes of pesky government agencies and regulators.  It would also fuel investors who would throw their money at this new glorious company called Ecomax, in the hopes of reaping the benefits and profits.  Ecomax would be rich, Black Bear’s stock price would soar and trade at a premium, and Senator Eastman and the execs at Black Bear would walk away with millions, if not billions of dollars, with no one the wiser.  That is, as long as they could get rid of Dr. Sloan.  With Colonel Espinosa out of the way, Dr. Sloan was the only one who could pose a threat.  But, they hadn’t counted on a couple of ex “la Technologies” employees getting in the way.  They hadn’t succeeded in this part of their plan, and we were going to make sure they never did.

“If this is all true, you know they’re not going to stop.  They’re going to be desperate and you know what that means, right?”  I wasn’t sure I knew what he meant.  “They’re going to eliminate, and I mean eliminate, anyone who knows about this.  That means us, Dr. Sloan, Margaret, Elizabeth, Alex, everybody.  They’re going to hunt for Dr. Sloan and when they find him, which they will eventually, they’ll find us,” he said very seriously.

“
Then what do we do?”  I asked searching for an answer. 

He stared at me, the anger growing in his eyes. 
“We strike at them first.”

-Chapter 41-

I was shocked at his statement.  I wasn’t a mercenary like those at Black Bear.  I had only fired a gun twice in my life.  My world had been numbers and thoughts, not bullets and guns.

“
This is getting out of hand, way out of hand.”  I said, stating the obvious.

“
I’m not saying we’re going in like Dirty Harry, but what do rich people fear more than anything else?”  Galveston asked, his anger subsiding. 

I thought for an answer.
  “I don’t know.  Not being able to find a cheap lawn guy?”

“
True, but no.  What rich people fear most is being poor,” Galveston said bluntly.  “That’s what we’re going to do.  We’re going to make them poor, and relieve them of their pressure and burden.”
“Why that’s mighty nice of you, but you don’t think they’re going to let you waltz in and take their money, do you?”  I inquired.

“
Well, you’re going to help me figure out how we’re going to do this.  You’re the money man remember?”

“
Yeah, don’t remind me.  I’d like to tender my resignation,” I joked.

“
So soon?  Nah, you want to see how this thing turns out.  This ought to be fun.”

“
Yeah, fun,” I answered. 

Elizabeth
returned from outside, timing her entrance perfectly.

“
I’ve contacted the agent in charge of our western Africa operations.  They have no intel on a rebel uprising.  He informed me of twelve dead total, thirty-two wounded.  The remains of two men were found, shot multiple times in the chest,” she told us.

“
Who do your people think did it?’  Galveston asked.

“
They’re unsure.  Appears to be a military operation, but they are unsure of who.  Those bastards blew the entire facility.”  Her English accent made all the words appear eloquent, but you could hear the anger in her words.

“
I better fill you in on what we’ve discovered.  I think you’ll want to call your people again,” Galveston told her.

“
I’ll let you two talk.  I still haven’t gotten my drink.  Plus I want to see how annoyed Alex is,” I said walking out of the room.  I was curious to see how Alex was getting along with his new suitemate.

I expected him to have Dr. Sloan shoved in a closet somewhere, or worse, in a headlock.  Alex didn’t like his freedom being impeded on by some outsider.  He was barely able to handle the ribbing
we gave him about his food and drink selections.  I walked into the kitchen and stumbled on what could best be described as a reuniting of a long lost father and son.

“
Try this.  It’s fantastic.  From the south of Spain.  Kind of earthy, with a hint of currant berry, right?”  Alex was pouring a glass of wine for Dr. Sloan, and he in return squished it in his mouth while swirling the wine glass in his hand.

“
Ah, truly excellent.  Yes, it holds its flavor in the back of my mouth.  Is it an ’82?”  Dr. Sloan asked.

“
No, it’s an ’84 Select,” Alex said proudly, smiling widely.  “Tell me more about your theory on electromagnetic passive circuits.  I still have questions,” Alex hurriedly asked, awaiting a response on bated breath from Dr. Sloan.  Dr. Sloan swallowed and examined the glass.

“
Let me start from my initial discovery…” Dr. Sloan started, and then stopped after seeing me enter the room.  “Hello Roger,” he said, smiling.

“
Hello, Dr. Sloan,” I answered.

“
Edward and I are discussing some of his early engineering theories.  I can’t believe you and Galveston didn’t bring him earlier.”  Alex looked over at Dr. Sloan.  “I told them to bring you over here earlier Edward,” Alex said scolding Galveston me.  I think I was going to be sick.  An industrial vacuum couldn’t suck up harder than Alex at the moment.

“
I just want a drink of water, tap water,” I said moving past the two sommeliers.  As I had my glass in hand, Galveston and Elizabeth burst into the room.

“
We’ve got an idea,” Galveston spoke boldly to everyone in the room.  I determinedly continued my quest for a lousy drink of water.  I was thirsty and had been interrupted by May’s arrival, our information gathering, and Alex’s and Dr. Sloan’s love fest.  I just wanted a drink, and damned if I wasn’t going to get one.

“
Roger, pay attention and listen up.  Elizabeth and I have a plan.”  He shot me a glance while I almost broke the glass between my fingers.  I set it down and sighed.

“
What?”  I exclaimed.

“
We’ve been talking,” he continued, holding everyone’s attention for the earth shattering news, “and we’re getting married.”  No one was amused.  “Okay, Okay.  We’ve been talking, and we’re going to Brazil.”  He stood with a silly grin on his face, awaiting a reaction from all of us.  Everyone stared back like a herd of cows.

“
Oh crap,” I said out loud in response.  “That’s it?  That’s your plan?”

“
Well, there’s more to it than that,” he answered me.  “Don’t worry.  I’ll fill in the details later.”

“
Oh, that’s great,” I shot back briefly.  “Now can’t I just get a stupid drink of water?”