Infinite Exposure
Page 16
Lenny piped up, “You can bet Pytho Corporation is wining and dining the auditors doing the certification right now. They will be hurling 20-something sex toys into hotel rooms with them and leasing cars in scores just to get the auditors to say they passed. First Global just had to go through the manually intensive process of consolidating financial information from all divisions to put out their quarterly reports. Even if the auditors come back saying they think Pytho is a month away from completing France, the sale will go through.”
Finally, one of the prestigious school boys piped up, “What good is this information to us? Do you think Pytho stock will jump enough to make it worth our while?”
Lenny looked at Jeremy and could see he understood. “Tell them what you have figured out and I will fill in the pieces. You are becoming a natural at this.”
“It means that the final data center moves won't happen. The bank will begin converting the locations serviced by the current data center locations onto this software once it is installed in the off-shore data center. One to six months after each business entity is running on this new software, all but one or two IT workers will be let go and the on-shore data centers will be sold along with the machines in them. Within the year, they should have migrated all business units to this new software, discarding all other machines and all other IT workers. Have either of you checked on the FDIC insurance requirements for data center workers?”
Both looked at each other then responded, “No.”
“Full background checks from government agencies are required for anyone with control or significant access to electronic systems handling funds insured by the FDIC. Just how much background checking do you think has happened for the off-shore workers since the bank doesn't own the data center?”
Lenny was sitting there nodding. “You have a big part of it, but you missed the best part.”
“You mean the part about this being a DOT-zero software release, so the odds of it actually working are remote?”
“That's a piece of it.”
“What's the other part?” asked Jeremy.
“Turn the knob,” responded Lenny.
Everyone looked at him and finally he went on. “The biggest marketing fraud to be committed by software vendors to date is claiming 'turn the knob' software configuration capabilities. This product will be a spin off or a module of their existing product which already does complete order, inventory, warehousing, credit, manufacturing, and whatever else.”
Lenny continued, “Assume for a minute that each knob has only 10 positions. How many knobs do you need before the permutation of possible configurations exceeds any testing capabilities? It isn't long before you have to have an automated regression testing product which runs for one month solid, throwing no errors, just to get a change out the door. The simple truth behind 'turn the knob' marketing is the software you are running is predominantly untested. Oh, there will be a small subset of tests run, but it will be left to the users in the field to find the problems. There are human interventions and workarounds when problems crop up in order processing or inventory management. No great losses occur and few crimes are committed. With banking software, severe problems could happen for years without anybody being able to track them down. Just look how long those traders losing billions on options and derivatives were able to hide their losses.”
“What Jeremy has given us is the timeline for our shred. Yes, we can now play Pytho stock because the product won't be announced until after it has been installed and the French IT staff eliminated or at least greatly reduced. It will allow us to do a slow accumulation prior to the run up. Their quarterly numbers weren't as good as expected so the stock is currently declining. Nobody will look twice at our accumulation thinking we are simply buying in a dip. They didn't offer any meat with their guidance, so others aren't buying. Once they have moved all U.S. and Canadian operations off to this new software platform, we can begin our shred of First Global Bank and Big Four Consulting, but we would be wise to wait until after Pytho has made their announcement and we have cashed in there as well. We can then do a triple shred.”
“You did well Jeremy. If you think you can get even more information out of this lady, feel free to get the jewelry at Tiffany's instead of Helzberg. We may very well clear a billion dollars next quarter.”
The two prestigious business school boys simply sat there with mouths open. They had just been spanked big time and both of them knew they would never find a play like the one Jeremy had just found. They also knew the only reason Lenny would limit his play to a billion dollars is fear of an SEC investigation.
Lenny had advised each of them, and even the secretary, to set up bank accounts in countries that didn't have extradition treaties with the U.S. He advised them to have most, if not all, of their annual bonuses sent to these accounts in case there was ever a problem. He had allowed each of them to invest some of their paycheck in the funds Lenny was running. There were a handful of funds outside of the company where Group Lenny provided buy, sell, and sell short recommendations. Each of them had put some money into those funds as well. The analysts running them had learned to take Lenny's advice. Many years, it was only Lenny's trades which made money for the fund. Until this moment they didn't understand just how risky their jobs were.
Finally, one of the business school boys came back to the room mentally. He tried to speak, then realized he needed to close his mouth first. After that he asked, “Which of the outside funds are we going to allow to play along with this?”
“I have not yet decided,” Lenny responded. “This will be a high-risk play. Too much movement too soon will demand an SEC investigation. Most of the funds we advise have greedy dumb asses running them. Given the returns I've gotten for them before, they will jump in with both feet rather than be patient. There are perhaps two which could participate early in such a play, but it is too early to let them know.”
Lenny hit a few keys on his notebook computer, then said, “First Global is up $12.00/share over its price before the announcement.” He pointed at the other two analysts and said, “You two need to verify we've liquidated our position. Report back to me as soon as we no longer hold any position in the company. I will start the next step when I feel it will go unnoticed.”
***
Heidi was prepping one of the secured living quarters when Nikolaus walked in.
“How are you doing?” he asked.
“I'm well,” she responded. “Looks like we will be up and running soon. Now I suppose we will find out who else on the team doesn't have what it takes to be here.”
“Regrettably, yes,” responded Nikolaus. “They will be rounding up six more cells this week. Some of the suspected Hamburg cell members are being picked up as we speak. We've already located a couple of organ recipients for the ones currently undergoing interrogation.”
“I wish we could approach everyone who needs the organs,” replied Heidi. “I do hate seeing them go to waste.”
“It's a bit too risky to do that now. The black market databases are the best method at this time. When the number of patients coming through here increases, we will have our own people set up Web sites to auction the organs off. For now, we cannot cut the others out. Everyone knows it is not a permanent relationship. It is only a matter of time before each site gets shut down or blocked from nearly every country.”
“Do you know how many more rooms I need to prepare? I have the rest of the day off, so I could get them all done today rather than trying to do it all in a rush when they arrive.”
“We currently only have the two women in custody. I won't have any other information until tomorrow about the cells being rounded up today. Some may end up in the hands of local authorities. Until you kick in the door you cannot be sure who is there.”
“Well, I guess I can go home and relax in a tub then. Perhaps get some carry-out dinner as well,” responded Heidi. “I have the two rooms done now, and we are both assuming the women will opt to live.”
Nikolaus nodded.
Heidi left the compound and drove home. For reasons she could not explain she pulled out a letter writing pad and took it to the tub with her. She decided to write a letter.
Hello,
It has been quite some time since we spoke. I must confess I was quite moved when you claimed me as one of your own. I did not feel your squad owed me anything, but your offer was quite touching nonetheless.
Currently involved in an OP which I cannot describe. Some time in the future I may need extraction. No danger now. Simply keep listening. When you hear about something ugly happening here, it will be time to come and get me.
Heidi
The closing time gal
The last line brought a sad smile to her face. She had some very fond memories of hanging out with that squad and missed her lover from it. In part she added it because they could all laugh about it now. In part she wrote it in case the squad leader was no longer above ground and the rest of the squad needed to remember who she was.
Once finished with her bath, she addressed an envelope and sent it to one of the addresses she had been provided. With postage on the letter, she went out the door with the letter in her coat pocket. She knew she most likely had surveillance on her. The level of clearance she had pretty much demanded it. There was a shopping mall not far from her apartment. The food court there had a postal drop near the bathrooms and cash stations. She should be able to easily drop the envelope on her way to the cash station without anyone getting suspicious. Had she been intent on hiding it, she would have sat at her table paying bills before she left. Anyone observing her wouldn't think twice about a bundle of envelopes.
She didn't exactly know why she did it. She had always been a firm believer in the party line. All of these people were part of a terrorist network and really did deserve to die. Still, given the history her country had and the way some thought in the party, it wouldn't be long before they were using any excuse to round up any Muslim and run them through.
Nikolaus had been a friend of the family for a very long time. He had seen to it that this operation could house no more than 100 women. It took approximately 4 hours to complete harvesting from each person. Less time if all they were harvesting was the blood. Still, someone would notice if the incinerators started running 24 hours per day 7 days per week. It was always good to have a plan of escape in case things went horribly wrong.
Revenue from the organ, marrow, blood, and soon stem cells flowed through accounts which provided money to the board members, company, and shareholder dividends. The party owned a lot of shares and thus would launder their money via dividends and shares of stock. The party, through one of its investment companies, owned a large chunk of debt which was convertible to dividend paying shares. Of course, the share price had to go up dramatically to make the conversion worth while. It was going up significantly this quarter thanks to the secured location and its antidote storage. The board didn't know about the sale of body components. Once the stem cells started selling it was going to be difficult to hide from them. Their hands had to be good and dirty before they were allowed to know about those. Thankfully it was Nikolaus's job to ensure the board's hands were bloody.
***
Kent received a letter signed by the board members. They had received feedback from the banks auditors. It was the opinion of the auditors that Pytho Corporation would meet French certification requirements within the month. Kent was instructed to obtain a new bid which was at least 20% less than the current price. The first banking system to be converted would be the French. Pytho Corporation was to commit in writing to obtaining certification for all other countries First Global Bank did business in no later than eight months from the date of contract signing. The letter went on about the order of roll-out to the other countries, but oddly didn't mention either Canada or the U.S. Kent noticed that Marget had been copied on the letter as well.
It didn't surprise Kent that the board wanted input on this issue. They liked to feel they were in control. Perhaps they actually would be once this software was rolled out. There were a lot of accountants who could be let go once each business unit came on-line with the new software. He had thought about making France the first country on the timeline, but that would have meant delaying it just like the board was doing. He wanted this project to hide the fact they didn't get the data center migration done. The board had seen to it that both projects would drag on past the two years Kent was supposed to be in IT, so he wouldn't be able to get all of the credit and a two level promotion.
Well, he needed to see just how much influence he had with Big Four Consulting now. He picked up the phone to call Kathryn.
***
Margret laughed out loud when she read the letter from the board. They had nipped Kent's nads. There was no way he could do a cut & run now. By stalling off this contract until after certification of French banking rules, they delayed the purchase a month. This delayed the installation enough that conversion wouldn't be able to complete until the end of the next quarter. True, it would be good for testing, but it meant Kent was actually going to have to complete the data center migrations. I hope he hasn't already spent the kick back he was to get from cutting that contract deliverable short, she chuckled to herself.
Carol happened to be walking by on her way somewhere when Margret called to her. “Carol, glad I saw you. You have to read this,” she said with a smile in her eye and a sing in her voice.
Somewhat perplexed, Carol walked in and accepted the letter from Margret. She expected some email joke, not what she read. After Margret relayed her take on it, Carol responded quietly, “You missed the best part. The board didn't say anything about migrating the U.S. or Canadian operations to the new system. They deliberately avoided mentioning it by stating the countries. They know the new regulation will take effect before this is complete, and they've offered up Kent to the legal system. Do you see the notation at the bottom?” she asked, pointing to it for Margret.
Margret looked and nodded.
“This was filed as official correspondence from the board. A copy of it is in the archival system for investigators to find. When Kent migrates the U.S. operations to this software, he has gone beyond the board's instructions. If the regulators try to come down on the bank, they intend to hand Kent to them.”
Margret's eyes got a little wider.
“Oh, you have a notarized letter in the same archival system, you're good,” responded Carol. “I wonder if it is deliberate or if they are just playing the odds,” Carol mused.
“What do you mean?” Margret asked.
“Well, if it is deliberate, there should be some official communication somewhere, probably to the asset group or the realty group, telling them to keep two of the U.S. data centers that have room for expansion and a comparatively low overhead cost in terms of taxes and electricity rates. The board will then be able to say they were under the impression all U.S. banking operations were going to occur in these two data centers while all other operations were going to occur in the Indian locations.”
“You know what, you should prepare a report for them with respect to the expandability of the remaining U.S. data center locations, the cost of electricity at each location, and the space currently available. If you bother sending it to Kent, simply put it in the folder of routine stuff he never looks at. Send it to the board and copy me on it. You can put in the subject that it is per the potential new regulation. Also include the number of people at each location who have the required background checks and clearance.”
Carol saw the confused look on Margret's face and said, “I'm telling you this as a lawyer, not a friend.”
The Lemmings March
Kent had left a voice mail for Kathryn to call him. Some time later she returned his call. He informed her of the board's demands.
“That'll be a tough sell to Pytho,” replied Kathryn.
“It also means you have to continue with the data center migrations for
now,” replied Kent. “The end date for the project is three months from now and we won't have France up and running by then.”
“Can't we migrate the U.S. and Canada now?” queried Kathryn.
“The board was very explicit Kathryn. France is to be done first, followed by the list of countries I gave you. Because they are going by countries and not company divisions we will need many trainers who speak the native language of each country.”
“How many do you think you will need?” asked Kathryn.
“If you are planning on doing a flash cut, two for every location where people will use the system. If you are planning a roll-out as resources allow, then two for each location you cut over. I don't know how well it will work having banking being done on two separate systems. We will probably need to bring people in from each location to a central training center and train them the week before the cut over, then have some traveling people at the major sites and leave the rest to call some toll-free support center.”
The profit margin was quickly fading from this contract. Both Pytho and Big Four had planned on reaping the revenues for support from the American and Canadian portions of the banking business up front. That was going to fund the rest of the operation. This latest demand from the board was going to ensure the bank had its payback long before the vendor received any revenue. The support contract pricing was based on the number of locations using the software. By focusing on the foreign countries first, the board was ensuring it wouldn't increase to a sizable level for at least a year. In the mean time, they were going to get rid of all their high-cost IT people in order of most expensive to least.
“I'll talk it over with Pytho and contact you back. Can you email me the exact list of countries so I have the correct order when talking with them?”
“Sure. Sending now.”
“Thanks.”
***
Stacie sent Jeremy an email to let him know she had begun training.