Chapter 6
Northstar Transit Partners became the obvious place to look.
That did not mean Northstar had done anything wrong.
Claire repeated that point so often Vincent threatened to have it printed on her office wall.
She ignored him.
Northstar’s acquisition team had been negotiating with Grant.
Normal.
Grant ran the division.
They had conducted preliminary due diligence.
Normal.
They had received internal operational reports.
Also normal, within confidentiality agreements.
Then Claire found something less ordinary.
Northstar’s second offer included a proposed management-transition provision.
Grant Bellacorte would remain as division president for three years after acquisition.
His compensation would include salary, performance bonuses, and a possible equity award.
Vincent read the term sheet.
“How much equity?”
“Undefined.”
“That means negotiable.”
“Yes.”
“Did Grant disclose this?”
“Not to the board materials we’ve found.”
That was a conflict.
Maybe not yet a crime.
Still a conflict.
Grant had been recommending a sale in which he personally expected to keep power and potentially receive ownership.
Vincent’s anger returned.
Claire stopped him.
“We still need to understand whether the term was contingent or speculative.”
“He should have disclosed it.”
“Yes.”
“That part isn’t speculative.”
“No.”
The auditors found another clue.
Grant had hired an outside logistics consultant eight months earlier.
Redwood Operational Advisory.
The firm produced reports showing the Midwest division had “structural shrinkage problems” and recommending divestiture.
The analysis relied heavily on loss data now under suspicion.
Northstar cited the same reports when lowering its offer.
Claire traced Redwood’s ownership.
No direct Grant connection.
But its managing partner, Eric Vale, had worked with Grant at a logistics company fifteen years earlier.
Still not enough.
Then Everett recognized the name.
“Vale visited our Joliet warehouse twice.”
“When?” Claire asked.
“Both times before major inventory adjustments.”
“What did he do?”
“Walked the floor with Grant.”
“Anything else?”
Everett thought.
“He asked weird questions.”
“What kind?”
“How quickly a loss hit the monthly numbers.”
Claire looked at Vincent.
Third clue.
Grant had a personal interest in the sale.
A consultant tied to Grant had helped justify the sale.
And suspicious losses clustered precisely when valuation data was being produced.
The possibility was becoming difficult to ignore.
But Claire refused to let Vincent jump to the ending.
“You still need the mechanism.”
“What mechanism?”
“How fake losses become money for Grant.”
Vincent looked at the Northstar term sheet.
May you like
They knew the direction.
They did not yet know the road.
