Chapter 5 - THE FIRST CRACK IN THE EMPIREMiles arrived at Corrigan Health Systems headquarters before sunrise.
He had slept for less than two hours. His eyes were bloodshot, his tie was crooked, and the security badge hanging from his neck felt heavier than usual.
At 7:15 a.m., the company's general counsel entered his office carrying a thick envelope.
"The board has received a formal request for an emergency meeting."
Miles continued staring at his screen.
"From Vance?"
"From three independent directors. Vance's notice triggered their review, but they're acting under their own authority."
"Who else knows?"
"The audit committee. The chief financial officer. The external auditors."
Miles rose from his chair.
"Then keep this confidential."
"We have a legal obligation to preserve records and notify the appropriate parties if we discover evidence of material misstatement."
"Are you threatening me?"
"I'm advising you."
Miles leaned across the desk.
"Your job is to protect this company."
"My job is to protect the company lawfully."
The general counsel placed the envelope on the table.
"Do not access or alter any historical financial records. Do not contact employees who may be witnesses without coordinating with counsel. And do not destroy anything."
After he left, Miles called Donovan.
"Move the remaining reserve."
Donovan's answer came immediately.
"No."
Miles froze.
"What did you say?"
"I said no. The account is subject to a preservation notice."
"Since when?"
"Since last night."
Miles felt a wave of anger so powerful that he nearly threw the phone.
"Who authorized that?"
"The bank's compliance department. They received a lawful inquiry concerning the transfers."
"Then use another account."
"There isn't another account that can absorb the money without creating a report."
Miles lowered his voice.
"Donovan, you have been paid very well to solve problems."
"And I've spent three years telling you that this would happen."
The line went dead.
At nine o'clock, Miles entered the emergency board meeting.
The directors sat around a polished walnut table, their expressions carefully neutral. Julian Vance joined by video conference. Iris was not present.
Miles found himself irrationally relieved by her absence.
"Let's establish the facts," said the board chair, Margaret Ellis. "Mr. Vance has requested documentation relating to his debt position and certain financial covenants. We have also received a complaint concerning charitable disbursements."
"An anonymous complaint," Miles corrected.
"Anonymous complaints can still contain evidence."
"The company is being targeted by a competitor."
Julian's image appeared on the screen.
"I'm a creditor exercising contractual rights. Your board is conducting its own review. Those are separate matters."
"You want control of my company."
"I want accurate financial statements."
Miles laughed bitterly.
"How noble."
Margaret raised her hand.
"Enough. We have an immediate question. Were all charitable funds recorded as disbursed actually transferred to the intended recipients?"
Miles glanced at Donovan, who sat at the far end of the table.
"To the best of my knowledge, yes."
Donovan's face went rigid.
Margaret noticed.
"Mr. Donovan?"
"I cannot certify that statement without reviewing the records."
Miles stared at him.
The room changed.
For the first time, the board understood that the problem might not be a hostile acquisition.
It might be an internal crisis.
Margaret closed her folder.
"Effective immediately, the audit committee will supervise an independent forensic review. All relevant records must be preserved. Mr. Corrigan, you will cooperate fully."
Miles stood.
"This is an outrage."
"No," Margaret replied. "An outrage is what happens when a company cannot explain where its money went."
He stormed out.
In the elevator, his phone vibrated.
A message from Bianca appeared.
My father knows about the investigation. He wants to meet you tonight. You'd better have a story that makes sense.
Miles typed a reply, deleted it, and tried again.
Before he could send anything, another notification appeared.
His personal bank had temporarily restricted several large transfers pending additional verification.
May you like
The empire had not collapsed yet.
But its doors were beginning to close.
Related Stories
