Chapter 6 - The Reserve AccountColin Ames arrived at Nathan's office carrying two coffees and the expression of a man who expected to solve someone else's problem.
At fifty-one, he had spent most of his professional life making financially troubled companies appear steady.
Nathan used to admire that skill.
On Monday afternoon, he found himself wondering what it concealed.
“Evelyn has questions about the restoration reserve,” Nathan said.
Colin placed the coffees on the desk.
“Evelyn always has questions.”
“She found more than two million dollars paid to Linden Advisory Services.”
“Project consulting.”
“For what project?”
Colin opened his tablet.
“Vendor negotiations, restructuring support, preliminary development work.”
“At the Ashford?”
“Across the portfolio.”
Nathan folded his arms.
“Then why was it paid from the Ashford's restoration reserve?”
A flicker of irritation crossed Colin's face.
“The reserve is maintained by the operating company.”
“Under a restricted-use agreement with the property owner.”
“I know how the agreement works.”
“Then answer me.”
Colin set down his tablet.
“We had several expenditures that needed temporary allocation. They'll be reclassified before the year-end audit.”
“Reclassified?”
“It's an accounting matter, Nathan.”
Nathan hated being spoken to as though he were a decorative executive.
He had negotiated hotel acquisitions, survived a recession, and spent twenty years in the hospitality industry.
He understood the difference between an accounting adjustment and an unauthorized payment.
“Show me the contracts.”
“I'll have accounting prepare them.”
“Today.”
Colin looked at him.
“Is this because of what happened Thursday?”
Nathan stiffened.
“What does the elevator incident have to do with company payments?”
“Nothing. But you've been distracted.”
“Get me the contracts.”
Colin's friendly expression disappeared.
“Fine.”
After he left, Nathan called the company's general counsel, Rebecca Holt.
Rebecca had worked for Ashford Hospitality for six years, specializing in commercial transactions and corporate governance.
He asked whether she had reviewed the Rosecross financing.
There was a pause.
“I reviewed an earlier term sheet,” she said. “Not the executed package.”
“Why not?”
“Colin told me the lender was using outside counsel and that the final version would come through my office.”
“Did it?”
“No.”
Nathan looked at the document Evelyn had given him.
“There's a signature page dated September twenty-ninth.”
Rebecca's voice sharpened.
“Nathan, my office didn't circulate a September twenty-ninth version.”
After the call, Nathan stood at his window.
His company had always been his territory.
Suddenly, he couldn't tell which doors were open and which had been locked behind him.
That evening, Vivian found him at the dining table surrounded by financial statements.
“You look terrible,” she said.
He didn't smile.
“Did Colin discuss Rosecross Capital with you?”
“Briefly.”
“Did you help arrange the financing?”
“I introduced him to a contact. Why?”
“What contact?”
Vivian pulled out a chair.
“Nathan, please don't tell me Evelyn has started another investigation.”
“She found unusual payments.”
“Unusual according to whom?”
“According to the bank records.”
Vivian sighed.
“Your lawyer has never liked me.”
“This isn't about whether she likes you.”
“It always is.”
Nathan pushed a statement toward her.
“Do you know Linden Advisory?”
Vivian glanced at the paper.
“I've heard the name.”
“From where?”
“Colin, probably. I attend half a dozen meetings a day.”
“Two million dollars went there.”
She studied him.
“Are you accusing me?”
Nathan felt a familiar exhaustion settle over him.
Every difficult question somehow became a judgment about whether he loved or trusted her.
“No,” he said. “I'm trying to understand my own company.”
Vivian leaned back.
“Then stop treating the people helping you like criminals.”
She stood and walked toward the kitchen.
Nathan watched her leave.
He noticed that she had not asked what Linden Advisory actually did.
Later, he opened his laptop and searched the company's internal vendor directory.
Linden's listed mailing address was a commercial office building in Wilmington, Delaware.
The phone number connected to an answering service.
There was no website.
Nathan downloaded the four invoices.
Each described broadly similar services.
Each had been approved by Colin.
Each had passed through an electronic authorization attributed to Nathan.
But the final invoice contained a detail the others did not.
A reference to Project Harborlight.
Nathan had never heard of Project Harborlight.
He called Rebecca again.
“Find out what this means,” he said.
Rebecca asked him to forward the document.
He did.
At 10:43 that night, Rebecca sent one reply.
Please don't discuss Harborlight with Colin or Vivian until we have verified something.
Nathan read the message twice.
Then his phone rang.
Vivian was upstairs, supposedly preparing for bed.
The caller ID showed Colin Ames.
Nathan answered.
May you like
Colin didn't bother with a greeting.
“Whatever Rebecca Holt tells you about Harborlight,” he said, “you need to hear my side before you do anything.”
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