Chapter 4 - THE FAMILY EDUCATION TRUST
The money was not company money.
Not directly.
It came from the Carter Family Education Trust.
Richard created the trust fifteen years earlier for grandchildren.
At the time:
none existed.
Then Eli was born.
Later, David had two children.
The trust grew through company stock distributions and investment income.
Current value:
approximately $6.8 million.
Beneficiaries:
Eli,
David’s daughters,
future grandchildren.
Richard was trustee.
David served as administrative adviser.
Mark had never paid attention.
Sarah had.
As finance director, she noticed that a company vendor called North Bridge Consulting received payments from both Carter Components and the education trust.
Odd.
Why would an education trust pay a manufacturing consultant?
Invoices described:
investment diligence,
family-office administration,
asset-protection analysis.
Possible.
Then the forensic accountant found something else.
North Bridge was owned by:
David Carter.
Through a holding LLC.
Disclosed?
Partially.
The trust’s annual reports listed “related-party advisory services.”
But amounts had increased sharply.
Five years:
$2.1 million.
Were all fees illegitimate?
Unknown.
Some work may have been real.
But comparable services cost far less.
Then Rachel said:
“Sarah flagged the arrangement before she died.”
Mark closed his eyes.
“And Dad knew?”
“Looks like it.”
“Did he approve it?”
“As trustee, yes.”
“Then why does he need Eli’s phrase?”
Rachel paused.
May you like
“Because Sarah may have copied the underlying records somewhere they can’t reach.”
The vault.
