Chapter 7 - The Seventh Restaurant
The audit began.
Restaurant seven, Newport Beach, revealed the first major fraud.
Construction budget:
$8.1 million.
Actual cost:
$6.4 million.
Difference routed through three subcontractors tied to Tran Pacific Advisory.
David claimed legitimate project-management fees.
Invoices disagreed.
Some services had never occurred.
Evelyn estimated $1.1 million could constitute improper self-dealing.
Thomas felt physically sick.
“Why would he do this?”
“Because nobody checked.”
That answer haunted him.
Not because David was uniquely evil.
Because Thomas had made betrayal easy.
He trusted without oversight.
He called negligence loyalty.
The next discovery was worse.
David had pledged two operating entities as collateral for a private loan.
Loan amount:
$9 million.
Lender:
Redwood Hospitality affiliate.
The proposed buyer was already financing David personally.
Conflict everywhere.
Evelyn said:
“If David defaults, Redwood could try to seize operational interests.”
Thomas understood.
David had not merely tried to push him out.
He had endangered the company.
Hundreds of employees.
Seven restaurants.
Suppliers.
Families.
Thomas's anger changed.
This was no longer about being insulted at a door.
It was about protecting something larger than both men.
He authorized formal legal action.
Not public.
Not yet.
Freeze extraordinary asset transfers.
Demand books.
Notify lenders.
Preserve email.
Redwood suspended negotiations within forty-eight hours.
David called.
Thomas answered.
“You killed the deal.”
“No.”
“You contacted the lenders.”
“Yes.”
“You used Walker Meridian against me.”
“I used contracts you signed.”
David shouted:
“You don't get to show up after three years and act like you own everything!”
Thomas's voice remained low.
“I don't.”
“Then stop!”
“But neither do you.”
Silence.
Thomas continued:
“That's what we're going to settle.”
David’s breathing slowed.
“What do you want?”
“The truth.”
David laughed bitterly.
“No. You want the restaurants.”
Thomas looked at the photograph of them from 2004 now sitting on his desk.
May you like
“I want to know what happened to my friend.”
David ended the call.
