TEO: Thief Executive Officer: A Dizzy Gillespie Mystery

‘em.

Accidental Terrorist

W hen Rob got to work, he found an envelope on his desk. It was addressed to Assistant District Attorney Latrobe. Curious, he slit open the envelope with a letter opener. Whatever was inside would provide him with a few minutes of diversion before he resumed his pursuit of white collar crime. Inside he found:

Dear Mr. Latrobe,

I am writing to you because I have read about your successful prosecutions and I have heard from other professionals that you are honest and tenacious. I want to help you prevent what you might call Accidental Terrorism. Terrorism because it could take innocent lives. Accidental because the motive isn’t political, it’s greed. Lives lost or ruined are a byproduct, collateral damage.

Please meet me tomorrow at 10:00 AM at the Dunkin’ Donuts on Bridge St. I know that you’re not in court then. You are my only hope to put a stop to this. If you don’t show, I’ll know that you aren’t the one to help and that I will be unable to prevent this abuse. The number on my cell is 647-527-6984. It’s a burner. I’ll find you.

Your Friendly Whistleblower,

Terry S.

It was typed in Times New Roman on standard business white paper. Rob tried to imagine the author in his mind’s eye—somewhere between alarmist nutbag and nerdy citizen. He returned to his work on other cases—a gender discrimination case, consumer fraud, and an assault and battery among them. But curiosity buzzed in the back of his mind like an alarm clock you try to sleep through. He would have to wait until the next day to find out more about his friendly whistleblower.

Like Spies

W hen his whistleblower sat down across from him, Rob couldn’t believe his eyes. His pre-conceived image of a bespectacled, bearded and geeky male was quickly eradicated. The whistleblower was definitely none of the above. She was well-dressed and attractive, her gray understated suit obfuscating a quaesi-centerfold figure. She was subtly but undeniably sexy. What really set her apart were her bright, piercing blue eyes—intelligent and full of life.

They each got coffee and she had a bagel. He was a little envious; with her figure, she could afford to eat a dozen. He, on the other hand, had to run every day just to stay even. As he waited for her to speak, he imagined being in a kind of a clandestine meeting worthy of Bond espionage.

She sipped her coffee and studied him—not obtrusively but not overly shy about it either and said, My name is Terry.

He recalled that one of the most famous whistleblowers (formerly called squealers or informants) was named Terry. Terry Malloy was played by Marlon Brando in On the Waterfront. Maybe Rob’s wife Kim was right; he couldn’t forget the old movies.

So, is Terry your real name?

It is. Before I tell you anymore, is this conversation private? Off the record? she asked.

Well, unless you report the commission of a felony, it’s private. But once I’m aware of a crime, I have to investigate it or charge someone.

She smiled, Good.

I’ll call you Terry until further notice. What brings you to me?

I think that a lot of unethical, if not illegal, acts might put a number of people in danger. Why did you agree to meet?

Curiosity, mostly. And possibly the chance to help a bad situation. Why don’t you tell me what’s going on?

Well, Mr. Latrobe, it wasn’t an easy decision to come forward. Rob leaned in slightly to encourage her.

Choosing her words carefully, she continued, It’s a difficult direction for me to take for three reasons. First, it’s very difficult to explain. It’s an intricate scheme. Second, it might be impossible to prove legally; it’s elaborately honey-combed with false signs and red herrings. She put down her cup and said, And third, I have to admit, most important to me, it’s really dangerous, and I’m scared. She held his gaze and he knew she was serious, and seemed to be honest.

Rob said, What exactly are we talking about here?

She said, We really have to establish a context. But at the risk of oversimplifying, we’re talking about price fixing, fraud, and maybe tax fraud and counterfeit drugs.

Okay, who are we talking about and how do you know?

Can you protect me?

What makes you think that you need protection?

In a nutshell, people who have questioned these activities in the past have had unfortunate experiences. A number have lost their jobs, their reputations, and in one case that I know of, her life was threatened.

Rob stared into her eyes, What do you mean by ‘her life was threatened’? Those are very serious allegations, Terry.

She shoved her chair back and stood, ready to depart. And what do you call counterfeiting prescription drugs and fraud—pranks? She consciously calmed herself. I really do have to go. I can’t spend too much time away from my job. And I can’t be seen with you.

Rob also stood. Then how can we proceed? I don’t even know your name.

She removed two folded papers from her blazer pocket and put them on the table. One has my name, and the other has the name of the person and the company that must be investigated. She pivoted and left. Rob stuffed the papers in his pocket and watched her walk away. He took the time to enjoy her legs as she crossed the street. He was about to turn in the other direction when a car erupted from the traffic. She jumped onto the curb behind a hydrant and barely avoided being sideswiped. Rob knew the car had swerved to hit her. There was no attempt to warn or avoid her. Rob grabbed his briefcase and started out of the coffee shop door, but she was gone. He thought about it on his way back to his office. The car hadn’t really endangered anyone else. It probably would have hit her if the hydrant hadn’t been there.

The day was ending and tomorrow morning’s meeting was at 10:00 AM. He could do research online at home. He called his wife to see if she needed anything. Hello Kim, how are you? As she often did, his wife asked, Who is this? As he often did, Rob answered with the first thing that came out of his mouth, Bond, James Bond.

Oh, James, do you have a license to kill?

"I have a license to love. What’s for dinner?

Korean pizza.

Oh, you mean Kitchen Sink Pizza?

A rose by any other name will still give you heartburn.

Aren’t you going to ask me why ‘James Bond’?

I thought it was because you’re so smooth and debonair. A pause then, Is this my husband?

Rob said, Yes.

‘‘Ok then, why James Bond?"

I’m afraid I’ll have to tell you in person. Very hush-hush, you know.

I hope you know the password. I’ll be the cute one in the kitchen.

As usual, Rob didn’t try to identify the toppings on his Korean pizza. Traditionally, Korean pizzas start with a traditional pizza and then cover it with everything from kimchee to snails to barbecued meats. Sometimes they don’t bother to begin with pizza. Sometimes Kim’s pizza was absolutely delicious, sometimes not so much. Tonight it was spicy and pretty good.

Rob gave an approving thumb and forefinger circle and said, So where’s the cute one in the kitchen? He made a show of searching around the room.

Never mind that, where’s James Bond?

Well I may not be James Bond, but I had a rendezvous with a beautiful spy today. Everything but passwords. As he usually did, he discreetly avoided revealing some details to his wife—privileged communications being what it is. When the case was closed, he would tell her about it—turning it into his comic standup routine. He definitely did not want to share his thoughts about the near accident he saw his prospective witness evade. What’s new with you?

Not much, but we have an interesting invitation.

From?

My new client. The one I sold that historic colonial to? Well, he and his wife want us to join them at the yacht club for dinner. I accepted.

Bah, humbug, you know that I’m not that social. When is it? asked Rob.

Next Friday night. I sent you an email. I think you’ll like them. He seems to know a lot about the history of the area. Because he grew up in Utah, Rob always felt he was playing catch up on New England history. And it did interest him.

I’m going to the HO (his nickname for his Home Office/Mancave) to read about the new case.

Not Your Average Jo

I n his HO, Rob unfolded and read the pieces of paper.

One read: Terry Shawson. The other read Jo Burke on one line and Diogenes Accutreatment on another. So if Terry was really her name, at least he’d be able to verify it. He had heard of the second name and maybe even the company. He’d look into it.

He started by visiting the Diogenes website. It was huge—and boring—filled with photographs of large futuristic medical equipment—consoles and scary looking camera-lens-probe configurations. The photos were followed by graphs, charts, and photos of brain scans splashed with vibrant colors, most of which hot-linked over to the Products page. The Products featured three page headings—Diagnostics, Treatments, and Treatment Management. Each page had multiple subpages and links to other parts of the site.

Right now Rob was most interested in personnel. He turned to the management page. There she was. Terry (Theresa) Shawson, V.P. Communications, Director of Special Finances. She had been there almost eight years and was in her late thirties. Her thumbnail conformed to the format on the page—a head shot followed by a paragraph describing her business philosophy. Rob skimmed it—Principles and Profits, blah, blah, blah. On Linked In and Facebook, he found that she had degrees from Wellesley College and Boston College, Boston University in Business Finances, Strategic Vision, and Communications,. Her hobbies included tennis, reading, and sailing.

While he was online, he checked out Jo Burke. Past president of a failed company and former CEO of a high tech company that was purchased by an industry leader, Burke started Transcendental Insurance with a couple of associates, started Diogenes and resigned from the Executive Board at the insurance company, but remained on the Board of Directors. His hobbies included reading business biographies, hunting, travel, and some charities. Nothing about family.

Rob sat back in his easy chair and read an article in one of the more respected business publications. He hoped Entrepreneurial World would forego a fluff piece in favor of objective information. What he found was a rare opinion piece—an assessment of a controversial and dynamic business executive sufficiently notorious and compelling to warrant a feature article.

Devil or Angel?

By all accounts the runaway success of Diogenes Accutreatment and Transcendental Insurance is due as much to the charisma and drive of its founder as it is to the value of its products.

The celebrated but notorious Joseph Burke is President of Diogenes Accutreatment Care and Treatment Services (listed as DACT on the NYSE). He is also the ex-CEO of Transcendental Insurance (TI), a major player in healthcare insurance. Burke stepped down from the title but he still sits on its Board. Many claim that the relationship between the two legally independent companies may also play a part in DACT’s success.

In fact, the FTC and SEC were investigating the two entities for collusion and price fixing, but Burke’s official cession of the CEO title discouraged the investigation. Competitors, as well as some regulators, have complained that diagnostics and treatments produced by DACT equipment have a greater chance of being covered by Transcendental Insurance—to the point that some physicians have stated off the record that they feel coerced into using DACT to make the tests and treatments affordable to patients. One doctor who asked to remain anonymous stated, "There is no evidence that DACT products are any more effective than others. Yet they cost more, and patients and doctors have learned through advertising that use of DACT will be reimbursed by insurance—at least by Transcendental. TI’s competitors have started covering DACT as well.

His competitors and some of his suppliers do not speak highly of Jo Burke although they concede that he has built quite an empire. He’s charming, attractive, and ruthless. Some of his customers, suppliers and employees idolize him; others fear or loathe him. I suppose that’s to be expected when you grow as fast as Jo has. The growth has to come at somebody else’s expense, noted Randall Price, his former partner. Price and Burke began with investments and insurance. According to most sources, they split when Burke began to expand beyond their original goals. Some say that Price got short-changed, but his assessment of Burke seems more informed and more favorable than that of others. The two compete in some markets, most notably medical devices and physician services, and they cooperate or partner in some other areas, including several insurance products.

As one would expect, customers of DACT give the company mixed reviews. End-user sales and profits have been growing steadily for the past several years. While customers generally appreciate the quality and availability of the healthcare apparatuses, many are aware that the prices rise almost constantly. Because of the healthcare insurance situation and the attrition of competitors, customers have no recourse and are locked into costs that continue to rise.

A confidential survey of Burke’s employees revealed similarly divergent views. While Burke and his company have made some spectacular gestures to help unfortunate employees, charities, and communities, there are a number of lawsuits and pending investigations for breach of contract, gender discrimination, manipulation of employee status and wages to avoid taxes, safety violations, and more. For some, Burke’s flamboyant lifestyle seems to engender further negative reactions.

While the apparent hand-in-glove relationship of DACT and TI presents complications and opportunity, one question seems undeniably fundamental to the future of the companies and the industry–where does Jo Burke go from here? What’s his next move?

By Charles Larsen

Special to EW

Charles@CLBR.com

Rob sent the online article to the printer and saved it in a newly created file Jo Burke – DACT. He leaned back in his chair. He had, of course, heard of Jo Burke but had never really given him much thought. Now he would. He had to be careful. Burke was not only well-connected and wealthy, but the media found him fascinating. An investigation is more effective when it develops naturally, pursuing information methodically behind closed doors. If knowledge of an investigation becomes public prematurely, it can lead to suspects concealing critical information. Moreover, if the investigation is unwarranted or dies an embryonic death, the office looks inept all the way up to the mayor. Rob decided that he would delay calling his colleagues in the FDA, SEC, and others until he knew more.

Of course, none of the sources mentioned counterfeit medicines or illicit drugs. If DACT was involved, his whistleblower would have to uncover it. He would determine if it was prosecutable. He always relied on knowing all the personal factors of those whose help he needed and those he pursued. He dialed Terry’s number. No answer. He left just his first name because he knew she was a little paranoid. Maybe justifiably so.

Two minutes later his phone rang. It was Terry. They agreed to meet the following morning at another coffee shop.

After his morning run, Rob showered and dressed for work. Since he didn’t have court, he dispensed with a tie and settled for a button down shirt and a blazer. In the meantime, Terry Shawson was also getting ready for the appointment. She knew it was important for her to give some solid information to ADA Latrobe to encourage his support. She also knew that she had signed a comprehensive NDA (Non-Disclosure Agreement). She was reviewing her experience at DACT in her mind’s eye almost as though it were a DVD. She remembered how she had been almost overwhelmed when she first arrived. She applied herself to learning the business, every aspect of it. She studied the products, the market, company finances, management personalities, and operations. She landed in the communications department for a time and then was one of the two females accepted into the Inner Circle—a sort of kitchen cabinet that helped run the company. That was where her fears and suspicions were confirmed. She placed a couple of lists and notes in her purse ignoring her new accessory—a snub-nosed .38 revolver. She now took it everywhere—except work. She didn’t want to trip the electronic screener and she knew that work was the least likely place she’d need it.

Inside the Belly of the Beast

O nce again, Rob was waiting when Terry arrived. She was on time. He was early. He noticed for a second time how business-like her attitude was. She sat and ordered coffee, subtly looking around to see if they were being watched. She asked, What do you need from me? You do understand that I signed an NDA when I took the job.

Before we discuss specific allegations, I just need context. I have to understand your suspicions and then go from there.

Terry shifted in her seat and began. Let me tell you briefly about my experiences at DACT. Prior to working there, I had done financials and management for a small firm of specialists. From there I went to an insurance company and helped them with compliance and communications. DACT recruited me after I had some interactions with them regarding claims concerning their products. Their products were quite good and they were a hot company with great potential. When I started, I was very impressed. Their external communications usually highlighted Corporate Social Responsibility.

"Nothing wrong with CSR, Rob commented, partially to demonstrate to Terry his familiarity with business culture.

Terry replied, If it’s real. If you look at Exxon, tobacco companies, and the like, they seem to care only about profit, but it can be more about image than reality. Like, Walmart used to be known as the Evil Empire… for mistreating employees, negotiating oppressively low prices with vendors, etc. That’s how they kept their sale prices low. Now they’re supporting minimum wage, cutting emissions, etc. And publicizing their positive actions.

Rob nodded, Getting back to deep diving, were there any surprises?

She thought about it, Not many. So far my own experience and that of my employed friends is that working inside institutions isn’t really very different from growing up in public schools. I mean in terms of corporate culture. You’ve got your popular kids, the inner circle, the teacher’s pets, the nerds, the troublemakers and the like. On one level the game is to infiltrate the inner group for most people. So the corporate game is the same, and the sub-groups seem to be the same, except that the troublemakers are more subtle than they were in school.

Rob encouraged her, I think I get the picture, but why start there?

Because during my first few years while I was learning the business, I had no idea what was really going on. She paused, and then explained, The inner group at DACT is extremely powerful and isn’t just an unofficial group of advisors. When I was in the outer group, we used to refer to them as Burke’s Jerks or Jo’s Shmoes. We were definitely jealous and envious. The group is more than a personality cult; it is an elite ruling class of the company.

Rob commented, That seems like it must be pretty common.

That’s what I thought until I became part of it.

Rob smiled, Are congratulations in order?

Terry made a curtsy-like gesture and held out her hand in a mock kiss-my-ring gesture. I suppose.

So your group influences corporate decisions?

More than that. We have our own conference room, where no one who isn’t in the inner group is allowed. It’s used solely for the group and its members. There’s a special ID badge that you have to use for entry. There are no windows. When we have catering for meetings, the food is left outside the door like a private hotel room. Inside it’s gorgeous. Luxurious beyond all reason. It’s an environment that nurtures arrogance. An unassailable arrogance.

Rob stared at her intently.

Terry said, I know it sounds like this is no big deal, but things that are said in there are more than wrong, I’m certain they’re illegal. Nobody outside of that room has any idea what really goes on.

So what laws are being broken?

Terry said, This is where I think we have to talk about what happens to me if I tell you.

Rob gave her his full attention, I don’t know until you tell me. Are you talking about qui tam or whistleblower compensation? You seem to be more concerned about your safety than your job security.

Mr. Latrobe, that’s exactly what I mean. There was a woman who began objecting to some of the practices I want to tell you about. And they threatened her. Then she just disappeared.

"From the