Chapter 11 - THE BOARD MEETING
Reed Development’s special committee received Nicole’s findings.
Marcus recused himself from investigation oversight because:
he created Ridgeline,
delayed disclosure,
and had personal ties to Peter.
Peter was suspended.
Outside forensic accountants reviewed three years of payments.
Final estimate:
$742,000 clearly unsupported or duplicative.
Another $418,000 questionable but potentially tied to real services.
Not every dollar stolen.
Important.
Peter eventually admitted approving inflated related-party invoices.
He claimed part of the money funded off-books project-expediting costs Marcus wanted but did not want visible.
Marcus denied authorizing kickbacks.
No evidence showed he did.
But his pressure for speed and secrecy created the environment.
Board censured Marcus.
He remained CEO temporarily under independent oversight.
The family trust buyout was delayed.
Valuation reopened.
Marcus lost money.
Not everything.
Consequences matched conduct.
Then one director asked:
“How did this investigation start?”
Marcus could have said:
internal review.
Instead:
“My wife found the account.”
Silence.
Then:
“She preserved records because she didn’t trust me to tell the truth.”
May you like
Harder truth.
The board minutes reflected it.
