The Full-Court Press Page 11

In preparing for the meeting, I visited the company’s website and analyzed its contents. I then called Sam and expressed my uneasiness about the company.

“Sam, some things just don’t add up. I smell a possible con game here.”

“Oh, I’m pretty sure the company’s on the up-and-up. I placed two other executives there, and I haven’t heard any negative information. Why don’t you interview and see for yourself?”

“Okay. I’ll take a shot and call you when I get back.”

The drive over the Cascades took more than three hours and gave me time to prepare. I hadn’t been a CFO or a controller for many years, opting to practice law for 31 years, but I still knew my financial and accounting “potatoes.”

I arrived early and located the office building, a pleasant-looking low-rise, which also housed an IRS office.

Upon entering PAC’s offices, I smelled the tell-tale aroma of fraud. I am a student of “the con,” and my background in law, accounting, finance and journalism has given me much material and experience.

How do you “smell” a questionable company? It begins when you walk through the front door. I was greeted by a receptionist, invited to sit on a leather sofa and told that one of the two owners, Michael Rich, would be with me shortly. The trappings looked successful enough, but the receptionist had little or no work to perform. Michael Rich greeted me after a short wait. It has now come to light he has used several names and two social security numbers, including that of a person who died in 1967.

FBI and Social Security Administration officials now believe that his real name is Richard Forbes Williams. Mr. Rich (Williams, if you prefer) made a weak attempt to show me the office, only introducing me to the break room which quadrupled as a mail/copy/fax room. He didn’t acknowledge the existence of an employee stuffing envelopes, which I found very strange. He walked briskly past his and several offices and asked me to revisit the leather sofa until his wife, Phyllis, finished her meeting.

An outsider can tell much about an organization from its culture. Cold, dispassionate and agitated would be reasonable descriptive words for PAC Equities. Several people walked by, and only one offered a weak “hi.” An agitated employee, perhaps the in-house counsel, queried the receptionist on a missing original document which she couldn’t find. He picked up the file from her desk and was clearly agitated, unfriendly discourse passing between them.

The interview with the Richs was a classic case study of how not to interview an applicant. The Richs were totally unprepared and, in hindsight, it’s possible and plausible they had decided not to consider me before the meeting.

They had my professional summary and asked me to add any information I wished. I briefly outlined my financial and accounting background and accomplishments, but they cut me short to describe their organization and immediate need for a person who could prepare full financial statements. Michael said they had no such financial statements. This was, of course, a red flag to any reasonably knowledgeable businessperson since the company had been in business for at least two or three years and should have had competently-prepared financial statements much before this.

I then asked some questions about the “guts” of their operation, namely their sale of promissory notes secured by deeds of trust (mortgages) and lending the funds received to builders and developers. He told me that that was no longer true; they’d changed direction. I then directed him to the obvious conflict between their website information and the July 2004 newsletter regarding the sale of limited liability partnerships/limited liability company interests. Mrs. Rich told me the website was currently being updated.

They abruptly changed the subject to whether I could do job-cost accounting. I answered with a resounding “Yes.” I then tried to redirect the conversation to whether they were selling securities which, unless exemptions were available, had to be registered with state and/or federal agencies. They stated they were aware of those issues and were getting advice from lawyers and others. I again brought up information contained in both the July 2004 newsletter and website that should have been corrected. I tried to be kind and candid, noting that I knew what they’d probably meant, but the language was materially incorrect.

Mrs. Rich said they still had additional candidates to interview, and they would notify me. I shook hands and left, pausing outside their office to count all the fingers on my right hand.

I called Sam and told him that there was a serious problem with the company, and I smelled a rat, or perhaps two of them. He thanked me for my input with a dismissive tone. For whatever reason, I was never sent on any future interviews with Sam’s company, and the Richs never contacted me further.

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The Bush Way: Fruit Fallen Far From the Tree

By Bernard Levy

Rudeness is the weak man’s imitation of strength.

Eric Hoffer

I, for one, give President Bush high marks…for incompetence, arrogance, leadership ineptitude and dishonesty. Maybe I’m being a bit harsh. Perhaps I’m blaming him for his privileged upbringing and continuing childhood but, at this supposedly mature stage in his life, he should have outgrown his childlike ways. Let me explain.

Our hometown newspaper’s past article titled, “Bush Stoic, Hopes to Move Past Slump,” covered Bush’s decline in the polls, growing opposition in Congress by both parties to his decisions in several areas including the Dubai port operations deal, federal government Hurricane Katrina recovery responses and the continuing Iraq war effort. The following Bush quote was noted in the article written by Knight Ridder News Service reporter Ron Hutcheson.

“I know some would like me to change, but you can’t be a good decision maker if you’re trying to please people. I understand some of the things I’ve done are unpopular, but that comes with the territory.”

I’ve followed President Bush in print and visuals since his first campaign for President and have carefully researched his past history, including young manhood through Harker Energy, the Texas Rangers and his governorship.

Bush’s leadership and management weaknesses are clear from his lifestyle and actions. What I’ve never figured out is why the majority of the media never put it all together. True, Molly Ivins, in her columns and books, “Shrub” and “Bushwhacked,” presents many hard facts that should have put us on notice years ago, but there are those who have significant disdain for her. However, facts, not opinions and perspectives, are irrefutable.

Columnists and investigative reporters are not unlike competent, ethical lawyers - all are dedicated to research, analysis and understanding of the subject matter. In the case of a lawyer, he or she must understand the parties, witnesses, opposing counsel and judge in determining whether to hold ’em, bold ’em or fold ’em.

Bush, unlike almost all of us, was not only born with a well-oiled, golden spoon in his mouth, he continues to live in that realm. He had received favored status in employment, business and political opportunities through connections and family clout, rather than on his own merit. His past business successes were minimal at best, to stretch all points. It’s clear he received favored treatment in the Reserves-I don’t hold that against him-but it is an indication of who he is and what he does. He has what can be called “the rotten, spoiled kid syndrome.” You know, “If I don’t get my way, I’ll hold my breath until I turn blue, and then you’ll be sorry.”

This attitude doesn’t apply exclusively to kids of the rich and powerful, but when it occurs in wealthy, powerful families, it can be formidable and very hard to correct.

This syndrome is also manifested in the following behaviors:

“My way is the only way, and I don’t need anyone else to tell me what to do.”

“I’m never wrong, and if you tell me I’m wrong, you’re my enemy.”

“I’m going to do what I want to do, and you’re not going to stop me.”

“Gee, I don’t know anything about that, and don’t you play the ‘Blame Game’ on me.”

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