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“Look.” My father pointed at the chronology. “As you see, I worked with Warren before John. John increased the fee when he took over because even though his hourly rate was lower, he billed more time, and Warren had to know the increase was unusual. I just read the Runstan correspondence file and I didn’t see any email from him objecting to any increase or raising a question. That gives me reason to believe Warren was complicit.”
“How complicit?”
“Warren approved the inflated fee knowingly.”
“Why would he?”
My father’s lined face fell. “If there was something in it for him.”
Yikes. “So John was overcharging Runstan and he and Warren shared in the difference? Was John paying Warren to accept the inflated bill?”
“Yes, that’s one way to think of it. Essentially, it’s a kickback scheme.”
“Does that sound like Warren?” I couldn’t begin to deal with whether it sounded like John. I just wanted to know what my father knew.
“Yes, Warren was a sleazebag, one of Stan’s cronies from the old days. He was the accountant you have when you start a business, when you play fast and loose, not when you take off.” My father’s shoulders sagged. “I never would have believed John would do this.” He turned to my mother. “Honey, did you see this coming?”
“Never,” my mother answered, hushed, and Gabby placed an arm around her shoulders.
“Mom, it’s going to be okay.”
I asked, “Dad, how do you think it works? John sends the bill, Warren pays it, and John kicks back to Warren in cash?”
“Yes, but not half, a percentage. It wouldn’t be worth it otherwise because John has to pay taxes on the income. If he kicks back too much, it’s not worth the risk.” My father grimaced with disgust. “I can’t believe he would do this to Stan. I’ve been calling Stan, and he’s not returning the calls. I wonder how much he knows. John jeopardized the relationship, and myintegrity.”
“But I don’t get it, Dad,” I said, mystified. “John has money, so why rip off Runstan? Nancy told me he took the money out of their bank accounts, too.”
My mother gasped. “You’vegotto be kidding.”
“This is too much.” My father looked down, hands on hips, then met my eye directly. “TJ, you might be right, and here’s what worries me. Runstan might not be the only client he’s stealing from. He’s working for almost all of my clients now. A kickback scheme makes sense only if he’s doing it at scale.”
Oh man.“You mean he’s padding bills with all the clients?”
“It’s possible.”
“But would they all take kickbacks?”
“No, not all, but some will, the ones who don’t mind stealing from the company.” My father sighed. “You have to understand, the people who approve our bills at my clients’ aren’t usually accountants. They’re bookkeepers or clerks and they don’t earn much. For the others, John could be padding the bills. He could get away with a minor increase. I’ve worked with them for years, and they trust me. They’d never question a bill.” My father’s faced looked pinched. “If I’m right, it’s massive wire fraud, mail fraud, and conspiracy. Federal crimes, state crimes. People go to prison for this.”
“John, inprison?” I blurted out, only because it was unthinkable.
“No,” my father shot back. “Over my dead body.”
“Everybody, stop.” My mother stood up, setting her jaw. “It’s almost morning, and John gets in at seven, if he’s coming in. I think we need to get the facts. I think we should go throughallof John’s bills. We need to understand the scope of the fraud and give him a chance to explain.”
“Right, I’m going to his office.” My father started for the door, but I touched his arm.
“Dad, can you explain one thing? Why does John need the money? He makes a fortune.”
“You think the only people who steal are ones who need the money? If that were true, there’d be no such thing as white-collar crime.” My father whirled around to my mother. “Marie, I’m getting his files. Can you get that PR lady and give her the heads-up we’re going to need her? And can you call Angela and get us a list of white-collar criminal lawyers?”
“You mean now?” my mother asked, astonished. “It’s not even dawn—”
“Yes. Today we need a lawyer and so does John, and they can’t be the same. He has criminal exposure, and the firm has civil exposure. I don’t even think we should meet with him without counsel.”
“Paul, he’s our son.” My mother’s dark eyes began to glisten, and my father put a gentle hand on her arm, drew her close, and gave her a hug.
“Honey, you know it, too, you’re just upset. Don’t worry. We’ll take care of him and the firm, too. We’ll fix this.”
