Skin in the game, p.26

Skin in the Game, page 26

 

Skin in the Game
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“Yes, my darling,” she said as she refilled their flutes. “I do love this little hideaway: our own penthouse suite, with our own things, but with room service any time. It’s like a permanent holiday.”

  Blake had purchased one-quarter of the top floor of a five-star hotel building overlooking the Thames and had it converted into a luxury flat. He pressed a button on a console that lay on top of the bedside table. The wall slid away and opened up to a seating area and a view of the river.

  Claire put on a white silk robe and sat across from him on a sofa, facing the one he had chosen. He stared at the white marble statue perched on the console table behind her. Apollo stood with one arm raised and a finger pointing to the sun, the slain serpent Python at his feet.

  “What is it, darling?”

  “Working through a few things in my head.”

  He inhaled the smoke and blew it across at her.

  “When this deal has closed, maybe we can get away for a few days. What do you think?”

  She moved to look into his eyes.

  “Is there anything wrong? Is it this Hawkins mess?”

  “Who said anything about Hawkins?”

  “I just thought it might be bothering—never mind.”

  “Joe Hawkins will be eliminated before the day is out. I am just wondering how …”

  “Sam?”

  “How could I have misjudged him? I thought he would be the one …”

  “… to follow in your footsteps, darling? He let you down. You shouldn’t worry yourself over him.”

  “My concern is simply with legacy. I couldn’t care less about Hawkins.”

  She moved over to his couch and sat beside him. She pulled his head to her chest and stroked his hair.

  “It’s understandable you would have trusted him. He demonstrated exceptional ability, acumen, loyalty.”

  “Who said anything about trusting him? I have little regard for trust or any such sentiment.”

  She continued stroking his hair, gazing down the river at the towering buildings of Canary Wharf.

  “Sam was dangerous. You shouldn’t expect anyone to have the same strength and resolve as yourself. You are the leader of Density. Only you have the qualities that make Density great.”

  “Nor do I have much regard for anything like destiny.”

  She removed her robe and let it slide down to the ground.

  “You can’t delegate leadership. You can’t pass it on or groom it. You grab it and hold tight, sink your teeth in and never let go.”

  She finished her glass and set it down on the table.

  “You can’t trust Khaldoun any more than you could Sam Hawkins.”

  “What do you mean?”

  Claire pulled away his robe and mounted him.

  “Khaldoun just wants your power. He’s overwhelmed by it, in awe of it, and he’s gotten too close to the fire.”

  He dug his fingers in and gripped the skin on her sides.

  “Go on.”

  “Laith Khaldoun is ambitious. Perhaps as ambitious as you. Do you really think he is going to remain satisfied being your lieutenant? He wants to run the show, and you are the one thing standing in the way of that. Are you going to let that happen?”

  “Khaldoun is multi-dimensional, more than just pure ambition. There is something else ticking inside.”

  “Are you going to let him run Density?”

  He pulled her down over him. Then turned to her and examined her curves.

  “What about you, Claire, what do you want out of all of this? Why are you here, fucking me, when you could be with your family?”

  She dropped her head down into him and sucked on his neck.

  “I would leave them in a second. For you. But I know you and I aren’t intended for some storybook romance with a happy ending. This is what we have. I accept that.”

  She thrust her hips into him.

  “I feel alive with you, Cadan. In a way no other man can make me feel.”

  “And why should I trust you any more than Laith Khaldoun?”

  “Because I love and worship you. Because I would do anything for you.”

  “And what do you want out of it? Just this?”

  She drove into him rhythmically, watching for him to finish. Then she rolled off of him and lit a cigarette.

  “You could give me more responsibility. It grates when you share things with Khaldoun and keep me out. I should be the one beside you. You think I’m just a woman, fit only for a behind-the-scenes legal job. But I could be on the front line with you, Cadan. I could help you grow your empire. And you would know you could trust me.”

  “How would I know that?”

  “Body language. I can’t hide anything from you when I am lying naked beside you.”

  Blake stood and poured some champagne into his glass.

  “Let’s see how things play out.”

  Chapter 26

  The offices of Augustus Lyons stood out as strangely modern compared to the established private banks in Zurich’s Paradeplatz. Large holdings of gold had earned Zurich bankers the nickname ‘the gnomes of Zurich,’ and the firmly entrenched gnomes typically sat in ornate settings that spoke of the mystery and allure of old money.

  Joe Hawkins entered the main doors of the building and paused, as he struggled to resolve where he should go first and how to look like he belonged. F1 cars, vintage motor cycles and avant-garde sculpture suggested he had entered a modern art museum rather than a bank. There were no tellers or private booths, just white walls, all the furnishings designed in monochrome fiberglass. There was a sole attendant at the opposite end of the building.

  As Joe approached her, she batted her eyelashes and swiveled a computer screen around to him.

  “Please enter your account number in the keypad. The computer will prompt you for your password. You will then receive further instructions. The elevators are directly to your right.”

  Joe noticed there were no couches or chairs in the reception area. No clients stood waiting. One person emerged from an elevator, strode past with his head down and went out through the main doors. He looked around for CCTV cameras but could see none. He glanced at the attendant and could see she was preoccupied, varnishing her nails.

  He entered the account number and password and read the message on the screen: ‘Please make your way to elevator two.’ The doors to elevator two opened. He got in, the doors slid closed and the elevator began to move. There were no floor buttons. It felt as if he had moved up but he couldn’t be sure how many floors.

  The doors opened, and he found himself in a dark room with black leather sofas and a coffee table. Behind a reception desk sat another attendant. The attendant offered him cappuccino and explained he would need to enter the account number and password once again. This time he was given a tablet he could take to his seat.

  He punched the number and password into the tablet. The message appeared: ‘Please enter your transaction authentication number.’ He reached for the code box, entered the password and waited for it to generate a new number. When he received the number from the code box, he entered it into the tablet. Another message appeared: ‘Please enter your security password.’

  He and Sofi had not contemplated the possibility there would be a third password required. Twelve characters long. He thought back to their meeting with Tariq Muhammad. He entered ‘jannat051150.’ The message returned: ‘Failed security password. You have two attempts remaining.’ He entered ‘tamara140308.’ The message: ‘Failed security password. You have one attempt remaining.’

  He sighed and glanced around the room. The attendant looked over to see if there was a problem. Hawkins just smiled. Think. Think. What’s the password, Sam? He typed in, ‘samuel040880’. The screen read: ‘Please present this tablet to the attendant.’

  Joe approached the attendant. He handed the tablet over and was directed to the third elevator. Again, the elevator moved without indicating a floor destination. This time he estimated the elevator had gone down several levels beyond the reception floor. When the doors opened, another attendant greeted him and directed him to a room at the end of a long dark hallway.

  The attendant said, “Please follow the green arrows on the wall to your viewing room. The standard maximum viewing time is three hours. Please dial ‘0’ on the phone when you are finished or if you require more time.”

  Joe made his way down the corridor. When the door locked behind him, the door to the vault opened on the wall opposite. The vault looked like a small cabin, about the size of a large car trunk. Inside, the first thing Joe spotted were gold bars stacked up and filling most of the vault, at least a hundred or so. At the front, there was a lock box with a key hanging out of its front and a laptop. Joe opened the lock box, found a DVD perched on top of numerous file folders, and inserted it into the laptop computer. No password required. He clicked on ‘play’ and started a little as a picture of his brother appeared on the screen. His pulse raced.

  “The following is my account of what I discovered regarding certain activities of Density Capital. I do not pretend to have had no knowledge of any of these matters until recently. The truth is, there were times when I was pivotal to their execution.”

  Sam paused and stared away from the camera. Joe could see the hollows in his cheeks.

  “Ambition is a funny thing. It can cause you to put up blinders, forget about aspects of yourself, things you believe are or were part of you. What I can say is I found out recently the limit of how far off-track I could go. So many of the things we were doing clashed head-on with what I believe in, values my family instilled in me from a young age, that I couldn’t take anymore. Joe, I couldn’t have done this if it weren’t for you. It was only thinking about you and what you stand for that finally provided me with the strength to stand up to Density.”

  Joe felt his eyes water as he heard his younger brother’s words.

  “There are many at Density who have a much sturdier resolve than myself. And I know I will face a wall of resistance when I try to pull in the reins on what we are doing. But I’m going to try. And I’m leaving this DVD and the contents of this vault as a trail should anything happen to me.”

  Joe gripped the table. He went down the wrong path, but in his heart, he was good.

  “Density is an off-balance-sheet facilitator for Baexter and Mandrake. It holds itself out as an asset manager, but this is just a front. The real economics behind Density lie in the criminal activities it executes on behalf of Baexter and Mandrake.

  “Density is in a unique position to do this because it is in no way related to Baexter or Mandrake. There is no one office where all of this takes place. A fortune is made, but it is difficult to locate if you don’t know the intricate financial structure that has been set up to wash all of Density’s activities.

  “It’s no coincidence that one of the world’s largest arms producers is working with a large natural-resource multinational and seeks the assistance of the likes of Density as its agent of corruption. Arms and commodities go hand in hand. Unexploited reserves of scarce natural resources are predominantly located in socially and politically unstable countries. Those countries have suffered a long history of deliberate social dislocation in aid of exploiting their natural wealth for the benefit of private industry in developed countries, and to the direct detriment of the local people. You need guns to steal on a scale this grand.”

  Joe thought of how Sam had never been behind the government curtains he’d been behind, never seen the atrocities he had seen. He took a different route, through the gilded corridors of big business and high finance. But they had ended up at precisely the same conclusion.

  “Density manufactures bribes to pay corrupt government officials to win lucrative contracts for Baexter and Mandrake. Density structures the deals in such a way that its private equity acquisitions in emerging-market countries secure follow-on contracts related to the primary contracts for weapons systems and resource exploitation. The related contracts generate fees that are used to pay Density and to pay all the bribes in the chain. Density sets up a number of shell companies located in offshore jurisdictions. The shell companies are set up in favor of corrupt officials who receive the payments for fictitious services.

  “The lock box contains a detailed corporate structure chart of all the special-purpose companies that have been set up by Density. You will also find the originals of contracts that set out the amount of the payments and the payment schedules. Passage Finance is the company Density uses to coordinate payments amongst the many vehicles it has set up.

  “Most of this is historical, and the money has already changed hands. But you will also find contracts drafted for Density’s latest venture, Passage II. Here you will see most of the documents relate to payments to be made to government officials of Uzbekistan.

  “As you would expect, Density often encounters resistance to its plans to take over a country’s wealth. Often it uses its negotiating position and relationships with regional players to see that its plans succeed. If this fails, it uses force.

  “Serbon Surveillance is a private military company and weapons broker that Density uses to organize and execute covert interventions intended to topple any resistance to their plans from local populations. Serbon sells light weapons on the black market to insurgent groups that will in one way or another serve their purpose, either by directly overthrowing an uncooperative government or providing additional incentive for that government to deal with Baexter and Mandrake. Serbon has a military force of a hundred or so specially trained military officers that are easily assembled on short notice. If insurgent groups are not enough, Serbon sends in direct troops. In the lock box you will find a list of all weapons trades and the insurgency groups that received weapons. You will also find a list of bank accounts of military personnel who receive or have received remuneration.”

  Joe smiled. His brother was thorough. He had left what looked like a complete trail. That’s what made him dangerous to the people at Density. That’s what got him killed.

  “Density is able to set up the overall structure by purchasing midsize companies set up in local jurisdictions that are actively involved in supporting natural resource- and defense-related activities. These companies usually provide infrastructure, telecommunications, transportation, logistics or dual-use goods, supporting the primary activities of Baexter and Mandrake. Density is able to purchase these companies by raising an arsenal of capital on mainstream financial markets. Density attracts investors such as large pension funds, insurance companies and sovereign wealth funds by putting up some its own funds and marketing its highly regarded reputation for buying and selling companies at a profit. This reputation is reinforced by recurring wins, underpinned by the corrupt activities I’ve just described. Density’s covert activities are not divulged to their investors. They have no direct knowledge they are funding corruption and global colonization. If they have any suspicions, they are turning a blind eye.

  “The structure generates supra-normal profits in the form of management fees and sets up Density as a star player in the lucrative private equity- and alternative asset- management market. This has led to the principals accumulating great personal fortunes. I have received such rewards personally. I was on track to becoming one of a few top performers at Density who would become ultra-rich.

  “But everything that I have described was not enough for the main players. Led by Cadan Blake, the senior partners of Density have furthered their personal fortunes by siphoning off additional revenues paid to the company in the form of gold and other precious metals. These transactions, originating with Serbon and executed by Mandrake, have never been reported or washed through the Density structure. Gold bars and diamonds are the primary consideration paid for black-market trades in weapons. These have been accumulated at this private banking facility. In the lock box you will find the details of the main Density accounts held here at Augustus Lyons. I have removed a number of gold bars and a pouch of diamonds from the main account as evidence.”

  Joe scratched his head. The question now was, what to do with this information? And what to do with the gold bars and diamonds?

  “At the core of this structure are primary contracts between Baexter and Mandrake and Density. None of these has ever seen the light of day, nor were they ever intended to. They act only as insurance that each of the parties will honor its obligations.”

  Sam looked into the camera. Joe felt as if he were sitting right in front of him, speaking to him.

  “The Uzbekistan project led me to take the actions I have taken. It will involve the extraction and development of much of the country’s wealth in natural gas and gold. Mandrake will make a fortune. Whatever is left for the Uzbek people will be used to pay for fighter jets, helicopter gunships, short-range missiles and an air defense system supplied by Baexter. DIA will monetize the long-term cash flows from the resources to pay for the weapons and take their piece of the action in return. Passage companies will have rights over most of the related business that is generated and will use a portion of these revenues to bribe local politicians.

  “The senior partners of Density plan an intervention on a scale they have never stooped to before. Serbon intends to kill hundreds if not thousands of innocent people in order to fan the flames of instability. They will simultaneously arm the Islamic Movement of Uzbekistan and see to it that they are held responsible for the planned terror. They will do this to convince the corrupt government of Uzbekistan to deal with their consortium. Uzbekistan is the key to Central Asia. There is nothing Density’s partners won’t do to achieve their ends. Blake must be stopped.”

  Joe watched as Sam went silent. He sat on the chair with his hands crossed on his lap. Then the DVD clip ended. There was no fade out. No final message. Sam was gone.

  Joe closed his eyes and stood up, pacing the viewing room floor. He clenched his fists as he pictured his mother holding his little brother in her arms. Then he saw Sam floating in the river. They wasted my brother! Tears surfaced in the corners of his eyes. As his chest began to heave, he slammed his fist into the table.

 

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