Chapter 51: Zugzwang

May 2, 2002, Greater Cincinnati, Ohio

🎤 Steve

“Are you going to tell me the actual reason you came to Ohio?” my dad asked after the waitress brought our lunches.

“I’m here to check up on my investment in the new prohibition-era hotel and speakeasy Anthony is developing in Newport.”

“That’s your story and you’re sticking to it?”

“It’s the truth.”

“Come on, Son! Tomorrow is Jessica’s birthday, and if there wasn’t some pressing, time-sensitive concern, you’d have come next week. This has to do with tracing the funds back to Volstead and Braun, obviously. But why are you here?”

“I had to have a former CIA officer for a dad,” I chuckled. “Not that I was practicing full tradecraft! Anyway, I weighed the possible outcomes and decided that it was better if Braun the Elder takes the fall and Volstead walks away clean, albeit with his firm tainted a bit by a corrupt law partner.”

“Setting aside for the moment why you think that’s a good idea, how do you propose to make that happen?”

“By convincing Volstead to go to the US Attorney with a proffer in exchange for no indictment being returned against him. The proffer would place all the blame on Braun, and I’d back Volstead’s version of events. I know for sure it was the Brauns all along, and the NDA was designed to protect the firm and Volstead, as much as it was to protect the Brauns. I also know from Nathan Edwards that Braun was the driving force with all the problems with Lone Star and her successor companies.”

“What’s in it for you?”

“We both know that even if the US Attorney indicts them both, it’ll take years to resolve, and it’s entirely possible they find a way to escape the trap. I believe that the best strategy is divide and conquer — have Volstead throw Braun under the bus, and have Volstead owe me a favor.”

“Your usual currency,” Dad observed. “But isn’t it risky?”

“Not really. If Volstead does anything other than what I’m going to suggest, he ends up indicted and that alone would be the kiss of death for the firm. He’ll jump at the chance to avoid that, no matter what his relationship with Braun might be. This strategy ensures that the Brauns are completely cut off, and that no more funds will be funneled to Braun the Younger, creating Stephanie’s end game scenario.”

“What about the NDA?”

“We were served with a subpoena by the FBI, signed by a judge who was fully aware of the NDA when he approved the subpoena. We’re completely in the clear on that, as the worst that could happen is Volstead and Braun have the subpoena quashed after they’re indicted. If that happens, and the follow-on subpoenas for bank records are quashed, then we turn over the proof we have of the money trail. As we developed that privately, there’s no implication on the Fourth Amendment. I’d rather not do that for several reasons, but in the end, it’s the master trump that ensures Volstead and Braun go down.”

“You’re sure it’s wise to interfere?” Dad asked.

“An animal is most dangerous when it’s cornered,” I replied. “I’m giving Volstead, who by all reports is an excellent attorney, a way to escape. If he turns on Braun, which I expect he will, Braun will have to plea bargain. Unfortunately, I can’t go straight to Braun to offer a settlement in exchange for not pressing charges because the Feds have incontrovertible evidence of wire fraud, and that’s going to cost Braun some time in Club Fed. Somebody has to go to prison, Volstead will see that, he’ll flip, and then it’s ‘game over’.”

“Leaving Braun’s son hanging out to dry with no operating capital and, according to Cindi, losing money because of debt service. Isn’t that owed to Braun?”

I smiled, “That’s the beauty of it — it’s owed to the LLC, which means it’s Volstead’s money, too. I seriously doubt he’s going to write that off, especially when we intend to pay all creditors on a dollar-for-dollar basis, with the exception of the LLC. If Volstead cooperates, he’ll get some of the money back. If he doesn’t, he’ll get nothing for the shares the LLC holds in Knowles and Jackson.”

Dad smiled, “I always said you should have run NIKA full time.”

“I’m very good at THIS,” I said. “I suck at the day-to-day mundane BS that Stephanie seems to love. Speaking of which, we’re going to begin a search for someone to head the Managed Services business unit. My goal is to be out by the end of the year, and go back to being a full-time software engineer.”

“Are there any internal candidates?”

“Sam is basically the only one who is qualified and I don’t know anyone either brave enough or stupid enough to ask her! She has her dream job — all tech, no management, except a bit of direction for Brenda, who also has her dream job. And Penny has hers again. I’m the outlier!”

“It’s going to be tough to find the right person from the outside.”

I nodded, “We know. There have been a few minor teething pains with Harper Atkinson, but that’s to be expected. The difference is this isn’t an assistant role, which is why the minor issues with Harper haven’t had any negative material effect on NIKA. I’m doing the hiring, and I’ll be extremely careful.”

“How are things otherwise?”

“Everything is going well,” I replied. “The kids are busy with their lives, and I’m sure Albert has been in touch about Memorial Day weekend.”

“He has. It’ll be good to see Aimee as well. Did Brian accept the offer from her father?”

“He did. Samantha is ecstatic because there is no further risk of her husband being away for an extended period of time.”

“It sounds as if everything is going well, which makes me happy.”

“When do you plan to come up?”

“We were thinking the first week in July, after Jesse’s hockey camp, but before your family vacations. We’d be there for Stephie’s and Albert’s birthdays, most likely, and the Fourth.”

“The nanny room is available if you want it. Tabitha moved out yesterday.”

“Catch and release?” Dad asked with a sly smile.

“More like a rescue,” I replied. “Her pastor and I had a run-in before in Rutherford, and he campaigned for Emmy’s opponent. Tabitha needed to escape, and I provided the lifeline. She and Hope Schobert are sharing an apartment.”

“You do seem to like to tangle with fundamentalist preachers from time to time. Not that I object, mind you.”

“It’s their perversion of God’s love for mankind into a message of hate that is used to oppress individuals with a goal of total control over society and an enforcement of their diabolical theology that grates on me!”

“It’s all a load of hooey,” Dad said firmly. “And I have no time for it.”

“We’re on the same page,” I said, “minus the fact that I think it’s possible there is more to the universe than you do. Birgit agrees with you, not me, by the way.”

“Wow!” Dad said, chuckling.

“I know, right? In the end, we all agree that religion has been used as a way to control people, and none of us is signing up for that.”

When we finished our lunch, Dad headed home and I headed into Cincinnati to meet my attorney friends. I had a good chat with Ben and Jocelyn, then spent about an hour with Deborah and Krissy, who fortunately didn’t teach on Thursdays, before heading to Newport to meet with Anthony. I went to his office, and we immediately walked to the building, which was undergoing renovation.

“As you can see,” he said, “everything is progressing well. We’re on target for our opening on September 1st, and we’re only about 5% over budget, though that’s within the variance I described in the plans. As I wrote in the last update, we found two electrical panels which needed to be completely replaced, as they hadn’t been installed to code despite having been signed-off by the city.”

“At least here you’re not having to make payoffs to get inspections,” I replied.

“Kentucky really cracked down on that, along with the ability of inspectors to grant waivers or variances after Beverly Hills. They’re especially strict with older buildings like this one.”

“Which makes sense,” I replied. “I see the fire suppression system is in.”

“And passed inspection yesterday. The drop ceilings will go in next, and then they’ll be ready to start work on the floors. The secret door for the speakeasy was completed on Monday, and the inspector gave preliminary approval, though the Fire Marshal had a list of questions and some minor changes he wanted for emergency lighting and signs.”

“What was his concern?”

“People have a tendency to try to leave a building exactly the way they entered it, and his concern was that the signage and lighting we’d proposed wasn’t sufficient to get their attention. He also wanted a way for the door to swing freely automatically if the power were to be cut. That took a bit of creative engineering, but it was completed this morning.”

“This all looks good. Did they complete the model guest room?”

“Yes, as of Wednesday. Let’s go take a look.”

We went up one flight of stairs, as the elevators were not certified for use, and he led me to the model suite. It had gorgeous hardwood floors, beautiful Persian rugs, a large four-poster bed, and elegant period furniture. There were nods to the modern era — a large, flat-screen TV, a stereo, and a coffee maker. The bathroom was a mix of modern and period, with a large claw-footed tub dominating the room, and a modern shower stall set into the wall, so only the frosted glass door was visible.

“Great stuff,” I said.

“There will be eight suites this size, four somewhat larger, and then the penthouse, which will basically occupy half the top floor. I’ve actually had inquiries about permanent occupancy, simply based on the plans.”

“How serious are those inquiries?” I asked.

“Very. Why?”

“Perhaps you use the other half of the top floor for a second suite, one that could be rented permanently.”

“That would reduce the number of larger suites by two,” Anthony said. “Reconfiguring the three guest room floors at this point would be prohibitively expensive.”

“How would that affect the P&L, assuming eighty percent occupancy?”

“As a rough estimate, I’d probably make a bit more with the permanent occupant.”

“What about the cost of the change?”

“It wouldn’t be too bad, really. As you know, the configuration of the penthouse is basically such that we could divide it into two smaller suites, with one bedroom each.”

“It’s something to consider.”

“Let me think about it,” Anthony said. “I’ll decide by Monday, which is plenty of time.”

“I do have one important thing to bring up, and that is your escorts using the hotel. I’m concerned about a vice sting and what that might do.”

“Some of our best customers will probably stay here from time to time, and they’ll want company, and I need to accommodate them. Let me discuss it with Connie, but I’m pretty sure we’ll need to take the risk. We haven’t had any problems with the gambling or the escort service since we started.”

“Just something to keep in mind.”

“Understood. Has anything changed about your meeting?”

“No. Absolute privacy and a waiter you know will keep their mouth shut no matter what.”

“I know just the team. A pair of Sicilians — a waiter and a busboy. I’ll remind them about «omertà».”

“And, as we discussed, no girls.”

Anthony laughed, “I’m not Fredo to your Michael!”

“True!” I agreed.

“Aurora will be disappointed she missed you.”

“Maybe another time,” I replied. “This is too important.”

“I completely understand. Would you like to see the casino?”

“Sure,” I replied.

We went next door to the restaurant, got in the elevator, and after Anthony inserted a key, rode up two floors to what appeared to be a storeroom for tables, chairs, and all the other trappings necessary for the operation of a fine restaurant, including tablecloths, place settings, and uniforms.

We walked over to a cabinet that matched the others set against the back wall. Anthony reached around and pressed a button. He then opened the cabinet and swung out a shelving unit loaded with uniforms. The back of the cabinet slid to the side and we stepped through. He pulled the shelving unit back, then pressed a button, which caused the cabinet door to close and the false back of the cabinet to slide shut.

“Slick,” I chuckled.

“And all for show,” he replied with a grin. “The cops could find it in a heartbeat, but the players love the idea of cloak and dagger.”

The casino was very well appointed with the usual collection of gaming tables for roulette, craps, and blackjack, along with about a dozen ‘one-armed bandits’ — the old style with actual wheels, not the modern video machines. One wall was a full bar with a brass footrail and period bar stools.

“We have two poker rooms as well,” he said. “One is open to anyone; the other is for regular games. In the first one, we take a rake from each pot; in the second we charge an hourly fee based on the blind structure and buy-in.”

“Is this a normal crowd for an afternoon?” I asked, seeing about a dozen gamblers, five of whom were playing poker.

“Yes. We open around 4:00pm and people begin to trickle in. Our busiest hours are 9:00pm to 1:00am. A couple of the regular Hold ‘Em games are in the afternoon, and we accommodate them, even if the other gaming tables aren’t open.”

“How do you handle inspections?” I asked.

“They’re always scheduled and we can break everything down and turn the entire thing into a large storage room. Everything goes into crates. Access is via that door, which can be opened with a key from the other side. That door leads to the fire escape, which is accessible from the main storeroom. It’s somewhat hidden, but the ‘Exit’ signs are clear enough for the Fire Marshal because this is only a set of storerooms which are never used by the general public.”

“So far as they know.”

“Obviously!”

“What’s the blind structure for the open Hold ‘Em table?”

“$10/$20 from 4:00pm to 8:00pm; $20/$40 from 8:00pm to closing, which is usually around 2:00am. ‘No limit’, of course. Interested?”

“Not on this trip; I need to get to Joyce’s house to see the kids before they go to bed or Uncle Steve will be in the doghouse!”

Anthony laughed, “I hear you on that one! Next time you’re in town?”

“Count on it,” I replied. “I can always use some extra pocket money!”

“Jake says you’re unbeatable at no-limit.”

“Jake knows of what he speaks,” I grinned.

We left the casino via the regular door and entered a hallway. We walked past the door to the fire escape and turned left to return to the storeroom, then went to the elevator. I still had about two hours before my dinner with Franklin Volstead, so we returned to Anthony’s office where I took out my laptop, connected to a phone line, then checked my personal and company email. I saw nothing that needed my immediate attention, so I disconnected from the internet and brought up the business unit plan, and continued working until it was time to go to the private dining room to await the arrival of Franklin Volstead.

He was shown in by Connie about ten minutes after I’d sat down. I stood, we shook hands, and he eyed me warily as we sat down. I would certainly be suspicious in his position, and I didn’t take that as any kind of personal affront. I did have a minor concern that he might record the conversation, but given what I was going to say, I wasn’t worried. Connie asked about drinks, and I asked for sparkling water with lime and Volstead, a single-malt scotch.

“How did you get to my daughter?” he asked once Connie had left.

I knew that question was a test, because he would know his daughter knew Becky van Hoek, and that was the logical path for me to use, given he would know I knew Becky.’

“Through a mutual friend,” I said. “It’s better if no names are used in this conversation unless absolutely necessary. And that mutual friend’s father is not aware of this meeting, nor of the links we’ve discovered between an LLC here in Cincinnati and one of my former employees in Denver.”

“So that’s what this is about.”

I nodded, “Yes. And, to the best of my knowledge, and in light of everything I know, I’m positive this entire endeavor, from 1988 until today, was the work of Arthur Braun, making you an innocent victim who did his best to protect his firm from someone who turned out to be a rogue partner. I’m willing to testify to that fact and have sufficient evidence to corroborate my testimony.”

“Why talk to me?” he asked.

I couldn’t answer because the waiter knocked and entered with our drinks. He left, we perused the menus, and he returned to take our orders about five minutes later. Once he had them, he left the room.

“Because I don’t believe my fight is with you. It’s been the Brauns from day one. You facilitated the NDA to protect your firm, which is exactly what I would have done. I’m convinced you had nothing to do with that situation. All evidence I have about Lone Star points to the Brauns, not you. All evidence with regard to EB Systems points to the Brauns, and not you. All evidence with regard to Knowles and Jackson points to Braun, and not you. And all the lawsuits smell of Arthur Braun, not you.

“The US Attorney here has your LLC dead to rights. They traced the transactions via the Caribbean banks to Colorado. I was the one who told them where to look after they obtained a subpoena ordering NIKA to turn over all materials covered by the NDA. And before you think about challenging that subpoena, that didn’t happen until my team reverse-traced the transactions. In other words, there is third-party evidence which is not covered by any Fourth or Fifth Amendment protections.”

“Now you’re an attorney?”

“No, but I know a few,” I said with a grin. “And they’re very, very good. I also believe you are an excellent attorney and have behaved ethically. That’s why I’m here. I don’t want to see you indicted.”

“Why?”

“Because I want the Brauns, and I want them to have no room to wriggle out of this. All that will take is a proffer from you to the US Attorney in exchange for not indicting you or your law firm. They’ll take it because you’ll give them everything they need to put Arthur Braun in Club Fed. That is basically a foregone conclusion. The only question is, do you want to avoid indictment? And here’s a sweetener — you’ll get most of the LLC’s investment back if you do things my way. If you don’t, even if you manage to avoid conviction, you’ll lose every dime you put into EB Systems and Knowles and Jackson.”

“And how can you guarantee that?”

“Simple. Knowles and Jackson isn’t viable because their debt service is too large. Without Braun propping them up, they’ll be in bankruptcy within a few months. They’ll try for reorganization, but I plan to step in with my own plan, which will make all creditors whole and return some capital to the LLC. Without that plan, the LLC stands to lose all value for the shares it owns in Knowles and Jackson.”