TARGETED Chapters 72 - 73 "A Final Favor" (A True Story)

                                                 ----ooo72ooo----

                                                A Final Favor

When I returned from Costa Rica I was greeted by a strange reaction from Koskella. Silence. No welcome home or how about a report. Nothing. I immediately prepared for another trip to Las Vegas in preparation for the final interviews regarding my appointment to Legacy. It felt a little strange to be wanted by what appeared to be a substantial firm. It was then that Dave Hart came in seeking an audience.

“Welcome back.”

“I was beginning to wonder if anyone would notice.”

“Kirk wants to know if you can do something for him. You remember the research that you did about the tax obligations of trusts?”

I was curious where this was headed.            Surely by now Koskella had to know that I was on the way out of Utah as fast as I could.

“What does he want?” I asked curiously.

“He just wondered if you could do an update of the information. He is putting together a brochure and he wanted to make sure that his information is up to date.  He wants to be squeaky clean in his compliance and have an authoritative document that will be completely compliant with the tax code. That’s all.”

Somehow “that's all” was never enough. It had been over four hours after I had come into the office before Hart had come in. Something wasn't quite right. What I didn't know was while I was gone Hart had used his master key, which he had as office manger, and come into the office that was supposed to be my private domain. From that time on any conversation I had was being taped. It would be years before I found out. So what did he really want?

“Fine.  I have been pretty busy lately but I am sure I can get an update together. It would come in handy with everything else I am trying to get ready for the Legacy Foundation presentation.”

“Funny you should mention Legacy,             how is that going?”

Now we get to the point of the real reason for Hart’s corning into my office. Kirk sent him to get a progress report.

“Everything is fine. I believe I passed the test in Costa Rica. They seemed to be pleased with my answers.” Anything else was none of his business.

“Kirk was just concerned about who these guys are. I mean are they really the sort of people you want to be associated with?”

Was he kidding? I almost made a comment.  After the treatment I had from Koskella in the past, of which Hart knew very well about because for the most part he was always there, I couldn’t even pretend that it was a surprise.  It was particularly ironic in light of all of the efforts I had exhausted looking very hard to find a “real” job with a stable future. My inner counselor told me best to say only what would keep Koskella off the scent.

“I don't know if they are the answer yet. It’s still too soon to tell.”

“Well, Kirk just wanted me to tell you that if Mr. Moreland ever wanted to come and visit he would be happy to compare what we do with what he does. What do you think?”

Now that would be interesting, was my immediate thought.            It could be a duel on the “white board”. Since there was yet so much about exactly what Koskella was up to that I didn’t know, I decided it would be a good exercise to flesh out some of the details that Koskella never seemed to get to. It would also give me an opportunity to hear unimpeded what Moreland had to say. I would have to think about it. Then again what was there to think about?

“I would be happy to mention to Moreland the next time I see him your desire for just such a match up, that is I mean such an opportunity to compare notes. I won't promise anything, he is pretty busy.” 

It was time to play this out and see just how far it would go. Still I was certain that Moreland would jump at the chance to confront Koskella, especially if it would give me an opportunity to make up my mind for certain about joining Legacy.

“I'll let you know.” I left it at that.

“Fine. I will let Kirk know you are working on that update.”

“I will probably be in Las Vegas next week for more interviews.”

Hart wasn’t quite out the door and that sudden revelation stopped him dead. “I will let Kirk know.” He then made a bee line for Koskella's office.

I couldn't understand what all of the trouble was over.   I had made it very clear from the beginning that being in the office was only a temporary solution. Three times I had turned down offers from Koskella to become an active member of the in house counsel.            For the tax project during about two weeks I had command, for research purposes, of the other attorneys in the office.  At least it was the illusion of command.

It is very important to remember this consequence for what will come later.  Just note that I sincerely believed that my efforts were being taken seriously with the goal in mind that the law would be observed and all the proper steps by Koskella and his organization would be followed to properly disclose all income, either foreign or domestic.   

It was later that I really wondered if the whole thing had been an attempt to increase my presence there in the office and perhaps tempt me into a more active role. It just hadn't worked. There was no incentive on my part to go any nearer than I was. Everything had remained at arm's length, or at least that is what I truly believed from everything I saw and heard. 

If there was something illegal going on I had not detected it, nor had Delbert.  In fact everything seemed quite the opposite.  Koskella had spent a fortune engaging an army of attorneys, CPAs, registered financial advisors and bankers to make sure his asset protection business was fully disclosure and  strictly in compliance with the laws.

After being gone for a week my responsibilities had begun to backup. I had accumulated several letters to write, a family trust to finish, and further preparations for my presentation to Legacy. I was lead to believe that I had to come up with what I personally thought was a good working plan for Legacy for the next couple of years in development. Surely they would make a formal offer soon, at least I reasoned.     They would not waste so much of my time and their resources over nothing.

There was a buzz on the phone indicating a call was coming through the receptionist.

“Yes, who is it?”

“It is a Mr. Moreland. Shall I put him through?”

Talk about clairvoyant.

“Please do and take messages from any other calls as long as I am on the phone with Moreland, unless it is my wife or one of my children. Thank you.”

“Paul. How are you?” Moreland sounded cheerful.

“Getting used to this time zone again.”

“I hear ya. Listen about Las Vegas. We will have to cancel.”

“I'm truly sorry to hear that.” I wondered if perhaps my answers in Costa Rica were wrong after all. “I was looking forward to...”

“Don't worry about it. You did fine. I would just like to invite you to go to Seattle instead. Is that alright?”

He didn't wait for an answer. “Because we have a meeting with some professional athletes and some other heavy industrialist that want to become supporters of Legacy. Can you make it? I think you would be very helpful.”

It may have been a foregone conclusion of Moreland that I was going to go to work for the Legacy Foundation, but there had yet to be an invitation. Surely there had to be an invitation soon. Was this just another test? I was getting a little worried about where all of this was going. I had no reason to doubt Moreland and certainly everything had seemed to check out, so why the hesitation? It was time to step forward and make some decisions.  I felt a need to pray.     

“Are you alright Paul?”

There was a long pause as if I were thinking about something very important.

“Seattle would be fine. When did you want me to be there?”

“I am sending the tickets overnight.  You should have them by 10:00 o'clock in the morning.”

With all that was going on I didn't bother to change the information I had given Hart.  All they had to know was that I was out of town.       There wasn't anything            that important to know where I would be and certainly not to contact me.

“Thanks Mike. When did you say the meeting was?”

“Oh it won’t be until next week but I thought I would give you as much advance warning

as I could.”

The rest of the day I worked hard to get all of my paperwork in order so that I could leave town the next week. I had some catching up to do. My family and my nine daughters kept me very busy. There were performances to go to, games to attend and some to coach. I was relieved to have a few short days to be with my family.

The following day I received a rather strange request.  “Kirk wants you to assist an investor who is having trouble transferring funds due to a mix up with their bank.” Hart explained. “They have resorted to using the assistance of Attorneys in their transfers. Since they have they have found there has been no loss of funds. In particular they had one transfer of over $100,000 that was ‘lost’ by the bank. It resulted in litigation to get the money back and so they do not want to risk that happening again. He would like you to speak with them and if they seem alright to you to assist them with a transfer.”

“When is this supposed to take place?”

“They will be here tomorrow.”

“They are coming to the office themselves?”

“Yes.   Kirk would like to introduce you to them.”

I was a little perplexed. I did not entirely understand all that Kirk did in his business, not because I didn’t believe he was informed, quite the contrary with all of the attorneys and law firms he consulted I had no doubt at that time that everything was redundantly legal.  I also believed that although Koskella wouldn’t do anything illegal he would certainly push the envelope at times trying to reach for what he termed as innovative, or “cutting edge”. Through such “new” methods he hoped to be the author of safer methods of investing, or so he would promise with great sincerity.  In spite of Koskella’s preparation, and being a stickler to details, I knew I would have to be very careful.

“Dave. Why don't they just bring a check with them?”

“I don't know. Perhaps they can explain it to you themselves.”

All that night I thought about how to approach this situation. There was no doubt in my mind that acting as a fiduciary was not that unusual for an attorney. I knew from past experience it was done all of time. I had completed such a role myself with escrow funds. The key was to protect both the clients and the attorney in such a transfer. That could be accomplished by observing a few simple rules. The key was to make sure that the funds were “clear and clean”, meaning that there were no existing liens or levies against them, and that there were no judgments against them. Even though the reason for transfer in this fashion seemed reasonable to these particular people, it was an added level of security not usually afforded a transaction. 

****That is unless, of course, the amount was large and the funds were in a liquid form, meaning readily expendable. At least with a check there was the ability to trace the funds and the direction they traveled through the system, but in the case of cash or its equivalent once a transfer was made to a primary destination, a secondary destination might even be masked. That posed an immediate threat to the security of the funds.

By the next morning I thought I was ready to put these people to the test. I had been told they would be coming sometime before noon and nothing more. First thing after hitting my office I jotted down a series of question I thought would be appropriate

After answering a few phone calls, including one from Moreland, I received the beep from the reception line that someone was there to meet me.

“Good morning Mr. Young. The Andersons are here to meet with you. Mr. Koskella and Neeley are here as well. I believe Ms. Bateman will be here in a few minutes. Mr. Koskella asked me to have come over to the conference room in about fifteen minutes.”

“Thank you.” Nothing about this seemed out of the ordinary but I had made the determination that I was going to be seriously thorough in my due diligence. If they were uncomfortable with that well at least I tried and Koskella would have to be satisfied that the transfer could not be done.

Now it was time to play this out.  It was odd that Koskella would make such a request knowing full well that I was close to moving out and going to work for Legacy. Then again how could he know? Even I hadn't been officially offered the job. I must be very careful, I reminded myself as I checked over my questions to be asked of the Andersons. Very careful.

 

----ooo73ooo----

A Show of Cards

It was time to go.  I walked down the long hall to the door that leads to the other side of the building occupied by Anglo American International.  The door had been unlocked so that I could come through without having to contact the receptionist to release the lock. I crossed the library and passed through a second hallway down to the conference room. There I found Koskella dressed out in one of his formal three piece suits. This was serious. Neeley was there as well as Bateman who had just arrived.  They were also very formally dressed. It was a good thing I had decided to wear my suit that day.

      “Good morning Mr. Young may I introduce you to Mr. and Mrs. Anderson.”

              Koskella called me “Mr. Young”. The only thought that went through my mind was these had to be people of great wealth. They appeared to be. They rose to shake my hand.  I noticed immediately how well they were dressed. He had on a very expensive and perfectly tailored suit. She wore very nice well-coordinated dress and blouse, with a coat that was suitable for business and yet comfortable. Judging from his watch and her jewelry there was no doubt these were wealthy people and they wanted to make sure you knew it.

            I have always made it a point when going into such a situation to let my instincts go to work and to try to read the people, to feel out their situation by every means.  Their voice inflection, their use of language, the way they carried themselves and the body language they exhibited when engaging in social contact, all of these things told me a great deal about the people in front of me. It had served me well in many a courtroom battle. Sizing up the opposition, or even competition, had become second nature to me. All of the signs screamed wealth.  The fact that Koskella was salivating should in and of itself have given it away, but all of the outward signs were there. Now came the hard part, the test. Koskella did the honors of introduction.

            “Mr. Paul Young is an attorney that we occasionally call upon to perform legal work for the company. He is not an in house counsel, as the other attorneys you have spoken with, so we thought he would fit your need to have a third party assist you with your transfer.”

            I thought that an interesting assessment and even fairly accurate.

            “It is true that I am not an in house counsel and do maintain my own separate practice, but you do need to know that I have a separate office here in this very same building.”

            “Yes Mr. Young we have heard this from Mr. Koskella.  I want you to know how much we appreciate your assisting us in this matter. We have had bad experiences with banks.”

            “Indeed.”

            There was a kind of disturbing quiet that settled over the gathering as my last statement hung in the air. It was neither an accusation nor a question, but the presence of an untested search for the truth. It had an impact on Koskella that I observed with some interest. It was just barely perceivable but enough of a twitch to show that a nerve somewhere had been touched. These people had to be very important to Koskella.

              What I did not know was there were others watching what was going on at Anglo-America with a very keen interest. One such interest was that of IRS Agent McDermott who continued in his pursuit of Koskella. I had made an enemy of him and did not even know it. Earlier in the year when Koskella had returned from the IOM after being released, McDermott continued on a rampage to get Koskella. Quite innocently I had arranged for a cessation of hostilities by brokering a cease fire through federal District Court Judge David Sam. It seemed harmless enough and in fact quite justified. It seemed the Court agreed. The IOM had dropped its charges with regards to the claims by the disgruntled three women who had their money, plus interest, returned.

              Part of my responsibility as Counsel was to make sure they were returned to their money in full.  That having been done the IOM found that the letter of the law had been accomplished and released Koskella. Since the premise upon which the IRS and the FBI were pursuing Koskella was no longer in issue, they were obliged to stop their pursuit, at least on paper. Hence a “settlement” was agreed upon.  It was not without some angry exchanges between Koskella and McDermott.  For both it had become personal.  In spite of the federal court’s decision, McDermott apparently decided not to stop.  He had put a great deal of time and resources into pursuing Koskella and now he had to justify the expenditures and allocation of resources.  Later research showed that in great part McDermott had centered his career on pursuing Koskella and his companies.  He wasn’t ready to quit.

For months McDermott had defied the order and continued after Koskella and, worst of all, he personally blamed me for Koskella slipping through his grasp. I only did what any attorney would do to protect and support his client, the very thing that was required under the laws and ethical considerations of the Bar. As such McDermott was watching closely for an opportunity.  I was also alerted by a local IRS agent by the name of Mike Stone.  I liked and respected agent Stone.  He was fair, and in all of the cases I had with him, he was courteous and professional.  He called me over to the Provo office of the IRS.  I came in and observed an audit being conducted by a GAO representative.  It made me smile knowing that there was finally some good that had come from the class action.

I asked for Agent Stone.  Mike came out to see me.  I half expected him to take me into an examination room in the back but he quickly ushered me out the front door into the street.  He walked briskly across the street to a bakery.

“Mike what so secret we had to meet across the street?”

“We cannot have this discussion in my office.   Nothing is safe over there.”

“Wow.  So what is it?” I was beginning to get a little worried.

“You have royally pissed off one IRS Special Agent.”

It didn’t take a big jump to guess who. “McDermott?”

“Paul, he stormed down the hall swearing that he was going to get you and ruin you. He shouted at the top of his voice that when he was finished with you you would be in prison and never practice law again.”

“Come on.  Koskella was found innocent in the IOM.  Why is he so angry?”

“Do you know what Koskella said about what McDermott’s wife has been doing?”

“I don’t really get the connection.”

“Koskella had a private PI working on McDermott and his private life.  The PI said, whether it was true or not was an entirely different matter, that McDermott’s wife worked for the office that issues grand jury subpoenas and that he had her issuing subpoenas for grand juries that didn’t exist so that he could gain access to bank accounts. In fact he even got into your bank accounts.”

“I know for a fact that he did.  I saw the subpoena and agent McDermott’s name on it as the person to provide the information to. I didn’t see anything about McDermott’s wife.”

“Paul I am warning you.  Be very careful, McDermott wants you really bad.”

While running all of this through my mind I decided to go forward with my questions of the Andersons.

“Mr. and Mrs. Anderson I am afraid there are a few questions I will need to ask you before I can proceed with your request. These are as much for your protection as they are for mine.”

“That will be fine.” Mr. Anderson said as he looked at me intently.

I really notice just how tall Anderson was and his wife was at least six foot tall herself. I also noticed that she was blond and very attractive.  She reminded me of a professional model. I was not far off.

“First of all please tell me why you need to use my services, why didn't you just bring a check with you?”

I noticed as Koskella became a little anxious. The Andersons on the other hand seemed to anticipate the question and had no problem answering it.          

“We have had a real problem with our bank.  Actually with more than one bank. More specifically we sold a piece of property and had to transfer the funds from bank to bank. We had experience in wiring funds and did not anticipate that there would be a problem. The funds went in, and then to put it simply, they did not come out on the other end. It was over $100,000 and I have to tell you that was quite upsetting.”

Mrs. Anderson added, “I spent all day on the phone with them, our attorneys, and some state representative for consumer affairs. It cost a great deal of time and money to get it all straightened out. We did nothing wrong and we were out of luck if we had not pressed our rights.”

“It would have been one thing if it had only happened once,” explained Mr. Anderson, “but it happened two times in the same year.  Since then we have been using attorneys and transferring through their trust accounts and we are happy to report that we haven't lost a dime.”

“Are the funds clear and clean?” I was never impressed with joyful commentary.

“How do you mean?”  He seemed a bit astonished I would ask.

“Are there any tax liens against them, judgments that might look to those funds to satisfy them, or do you have any outstanding tax assessments?”

They were taken back by the questions but dutifully answered.

“No. There are no judgments, tax liens, nor assessments. There is nothing against this money. It is clear and clean.”

“Is the money the result of a tax generating activity and do you owe, or will you owe any tax as a result?”

“Well, actually these funds are what you would call 'after-tax' dollars. They are part of our retirement money which we have already paid taxes on.”

“Do you have control over the funds and their disbursal?   Are they yours to command?”

“Yes. Of course.”

The Andersons acted as though they were being insulted. That being the case I knew they would not take well to the next question, but I had to ask it.

“Are any of these funds the result of a criminal activity?”

Mr. Anderson became physically upset by the question. Mrs. Anderson was ready to get up and leave. They did not. They needed help. They still reacted. “I hope you are not accusing us of a crime Mr. Young, because if you are I ...” Koskella interrupted.

“It’s a legitimate question that, as counsel, he has to ask.” Koskella's words seemed to calm the Anderson's instantly.

“Please don't be offended.” Koskella shot a look at me that I had no trouble interpreting.  I was not however finished and until I was there would be no deal.

“How much do you intend to transfer?”

“About $750,000.”  Mr. Anderson said it as though it were some kind of status marking icon that no one could dispute. Of that he could be right.

            I also noticed that there was a stack of neatly piled papers in front of the Andersons. I had had no review of any of the documents and they were not offered.  This presented a dilemma, but judging from the position in front of the Andersons I was able to determine that they were in fact an agreement they had with Koskella and his companies. It seemed a good place to go next.

“That stack of documents in front you, does it contain the understandings that you have with Mr. Koskella and his companies?"

“Yes it does."

            “Have you had a chance to read it?”

            “Yes, but we did not understand all of it. So we took it to our advisors.”

I thought about that for a moment.

“When you say advisors you are referring to your legal and financial advisors?”

“Yes. They have looked at it and reviewed it for us and helped us to understand those parts that seemed a little unclear. “

            “And you are satisfied with their explanations?”

            “Yes. Completely.”

            My mind was racing. Everything seemed to check out. I really only had one more important question. There was detail that had to be probed.

            “What do you want done with the money?”

            The Anderson's actually relaxed a bit when I asked the question. They seemed to sense that the really difficult questions had been asked.

            “We will supply you with a list of disbursements through Mr. Koskella and his company who will handle the business associated with our funds. We have already made those arrangements with Mr. Koskella.”

            “I presume that is part of the documents you have stacked in front of you?”

            “That is correct.”

            “Would it be fair to say that your financial and legal advisors have reviewed your investment through the use of these contracts?”

            “Once again you are correct.”

            I saw no reason to think that they might not be telling the truth.  They seemed very credible and extremely articulate.  Sometimes you can read a lot into not just what a person says but how they say it. I continued with my disclosure.

            “Upon receipt of your funds I will have to retain them in my trust account for a period of about 48 hours to make sure they have cleared.”

            They raised their first protest. “But this a wire transfer, it has to clear.”

            My response came without hesitation.  Now they would have play by my rules. “Much like you I have also had some experience with banks, enough to know that some funds can actually come from a seemingly substantial, even very reputable place but turn out in reality to be nothing more than a promise to pay. If I am to disburse cash then I need cash that's verified and real. I am sorry for any problem this may cause for you but I must insist if I am to assist you.”

            All the while I kept one eye on Koskella.  It was interesting to me, even a little puzzling, that Koskella seemed a bit uncomfortable with my lecturing “his” investors and he certainly wanted very much to say something. Trouble was he didn't dare because it was not in his best interests to interrupt.

            Koskella knew I was right and to oppose the position I had taken in anyway would send a mixed signal. I had to focus on my objective, which was to make the investors disclose any anomalies in their assets they wanted to transfer via a fiduciary.  I actually believe that Koskella was just as concerned at the validity and character of the assets as I was. 

            What I did not know was McDermott had been very busy isolating Koskella from his financial institutions.  This active campaign was in reaction to having lost whatever momentum Agent McDermott thought he had in his pursuit of Koskella.  It had suffered a tremendous set back in Judge Sam’s court when the court seemed to swing Koskella’s way.

            After the intervention by Judge Sam, Agent McDermott had intervened at several of the banks frequented by Koskella in the county and his efforts had effectively cut off Koskella from some of his assets. There was to be sure in effect a state of war between Koskella and IRS Agent McDermott.  As had been confirmed by Agent Stone, Koskella had set a private investigator on Agent McDermott and tried to discover anything that he could use to cool down the aggressive agent. McDermott had been visiting with the Bank Board of Directors of the local banks and warning them to do business with Koskella was the kiss of death and that he would employ all of his resources as an IRS Special Agent against any bank that was foolish enough to open an account for Koskella. As a result he succeeded in freezing out Koskella and hitting him right in the pocket book. It seemed that if the Court was going to reject his attempts, then he would do it himself. McDermott made no secret of the fact that he was in hot pursuit of Koskella to anyone associated with him, including me.  Correction, that is especially me. Such reasons were why Koskella had called me over in the first place.  It was also why some aspects of what was going on did not make any sense. For the moment I was inclined to help the Andersons but only after I had finished my due diligence.

      “I assure you Mr. Young, the money is good, we are comfortable with the documents, we are fully aware of what it is we are doing. Can I answer any more questions?” Mr. Anderson was becoming less and less entertained.

      “When did you want to complete this transaction?”

      Finally. “We would like to give you the information and begin tomorrow.”

      Koskella was quick to interject. “We are ready to complete the transfer tomorrow from our point of view.”

      “Yes. Tomorrow would be fine.” Anderson looked at his planner and check for a phone number. “We are due to be back this evening and as soon as our flight gets in I will verify everything is ready for tomorrow and I will complete the transfer.”

      “I will confirm receipt of the funds and then I will disburse them as per your instructions upon completion of the waiting period.  I hope you understand that I have to be careful.” That was my final warning.

      There was no discussion as to how the funds would be disbursed exactly so I had no prior knowledge of whatever that plan would be.  I thought it important, even essential, to know.

      “Please tell me exactly what you want done with the funds after they have been confirmed.”

      “We have already discussed this with Mr. Koskella and he is to be given the funds and will instruct you by way of a written list as to how to disburse them. We have already executed the paperwork for the transfer and he will then have the power to make sure the funds go where they are required.      We are satisfied with the arrangement.”

      Anderson was most interested in making the transaction work.  Koskella had made them promises that I was unaware of, but then again I was not their attorney.

      “I must make it very clear that I do this as a matter of professional courtesy and not as your legal counsel per se.  The only connection we have is in the transfer of the funds.” I thought it the right thing to say.

      “That is our understanding as well. We already have our own attorneys and we do not need your services for anything else.”

      “Then may I ask one additional question?”

      “Sure.”

      “Why didn't you just use your own attorneys?”

      “Well, quite simply they are not licensed in this state and Mr. Koskella recommended that we use you since you are here and he trusts you. He says that you are very careful with the law and take your responsibilities seriously.  After this encounter I believe I can attest to the truth of that assessment.”

      “Thank you.” I think.

      They did seem very determined and appeared to have a working knowledge of what they were about to enter into.  Everything seemed to be painfully documented. They had convinced me of their sincerity and I would take great care being entrusted with the funds as the fiduciary.

      “I will await your transfer.”

      I honestly did not know, nor could I have predicted what would happen next.