Manhattan's Ruler: The Return of the Trash Son-in-Law

The Chairman's First Move

The company reported eighty million in annual profit. The real number was closer to thirty million. Ethan checked. He checked everything, and by the time the grey morning light came through the high warehouse windows, he was smiling.

"You found something," Vincent said from across the room.

"I found everything," Ethan said. "Richard has been running a fraud for at least five years"

"How much?"

"Fifty million a year in misreported profit," Ethan said. "Fake subsidiaries and inflated assets. Clean enough to pass a casual audit but not clean enough to survive a real one." He leaned back and pressed his hand against his ribs for a moment. "The Hargroves have friends at the SEC, that's why it never got caught."

"So you're going to the SEC," Vincent said.

"No," Ethan said, closing one window and opening another. "I'm going to do something much worse than that”.

By noon, the anonymous blog was live. Ethan had uploaded every document and every email in folders with clear labels. He sent the link to fifteen financial journalists, ten activist investors, and five short-seller hedge funds, and then he set the laptop aside and ate half a sandwich Vincent had brought from somewhere.

"How long before it moves?" Vincent asked.

"Three hours," Ethan said. "Or maybe two."

It took two hours and twenty minutes. He was watching the CNBC ticker on his phone when the segment cut in, a presenter with a serious face and a graphic that read HARGROVE INDUSTRIES FRAUD ALLEGATIONS behind her shoulder.

"It's running," he said.

Vincent leaned over to look at the screen. "That was fast."

"Short sellers move fast when someone hands them a loaded weapon," Ethan said.

Bloomberg followed within the hour. The Wall Street Journal called the Hargrove Industries press office, and the press office issued a statement that called the documents fabricated and threatened legal action against anyone who published them.

The stock dropped eight percent after hours of trading. Richard issued a second statement. The stock dropped another twelve percent. By the closing bell the next afternoon, Hargrove Industries had lost four hundred million dollars in market capitalization, and Richard Hargrove's phone had not stopped ringing since Tuesday morning.

Ethan watched the numbers move on his screen.

"They're bleeding," Vincent said.

"But this is only the first cut,” Ethan said.

He knew about the emergency board meeting six hours after the story broke, because Richard's email password was a variation of his birthday combined with his car's license plate.

Ethan read the board's communications in real time from a window seat in a coffee shop on 52nd Street, directly across from the glass tower where Hargrove Industries occupied the top four floors.

He watched Richard arrive in his Bentley at nine in the morning, moving through the lobby, shivering slightly, cutting his steak and ignoring everyone at the table.

"There he is," Ethan said quietly to no one.

Eleanor and William arrived ten minutes later in a separate car. Eleanor was wearing a grey coat while William’s ears were already filled with tears, even though he's trying so hard to hide it.

Twenty minutes after that, a black Mercedes pulled into the parking space, and Ethan watched Serena and Julian walk in through the side entrance together.

Vincent, sitting across the small table with his own coffee, glanced out through the window. " An heartless prostitute”.

Ethan didn't say anything.

The meeting lasted four hours. Ethan read the board's positions as the emails came through. The board wanted Richard's resignation.

They wanted a full audit and two members were already using the phrase "criminal exposure" in writing.

"The board is going to push him out," Ethan said.

"What's Richard saying?" Vincent asked.

"He's saying he built the company and he will not be removed based on fabricated documents," Ethan said, scrolling through the thread. "He's saying he has handled crises before and he will handle this one." He paused, smiling faintly while gazing at the phone.

"Did they give him a deadline?"

"Yes, they gave him one week to restore investor confidence," Ethan said. "Or they will vote him out."

The board meeting ended at two in the afternoon and Ethan watched from the coffee shop window as the Hargroves came out one after the other.

Richard walked to his car fast, gazing at the floor to avoid eyes contacts with the people. William walked close behind him with his hands in his jacket pockets.

Serena came out of the building and pulled Julian aside in the parking space. They stood together in the shadow of a concrete pillar for ten minutes while Ethan watched through the window.

"She's not even rattled at all," Vincent said.

"No," Ethan said. "She's not."

Julian made a phone call. He turned slightly away from Serena while he talked and Selena followed, walking a few inches away.

"She's going to throw Richard to the board," Ethan said. "And then position herself as the clean one who is fixing the family's mess and she will then use this whole situation to take the company."

"That's not a bad play," Vincent said.” At least, from a woman who's bold enough to ‘kill’ her own husband”.

"It's a very good play," Ethan said. "And it might even work." He closed the laptop and sat for a moment, looking out at the parking space where Serena was now laughing at something Julian had said, her hand on his arm. "Except that they are both making one mistake."

He picked up his phone and opened a message to Vincent's number, even though Vincent was sitting three feet away.

“I need a suit and a board seat."

Vincent read the message on his own phone, then set it down on the table and looked at Ethan.

He typed back.

“Consider it done."

Ethan pocketed his phone and looked out the window one last time, gazing at the Hargrove Industries tower catching the afternoon light.

The coffee in his cup had gone completely cold, but he drank the last of it anyway and stood up.

“It's time to show them more”.