Chapter 7
The special committee found the forged guarantee was not Sterling’s only manipulation.
For two years, North Harbor had been receiving unusually favorable treatment from Hale Meridian.
Extended payment terms.
Discounted development services.
Equipment rentals below market.
Senior employees assigned to the project without full cost allocation.
Total estimated benefit:
$3.1 million.
Thatcher had approved some.
Sterling had approved more.
Why would Sterling expose the family company for his son’s private venture?
Because Sterling had invested too.
Not publicly.
Through Coral Gate Holdings LLC.
Owner:
A trust benefiting Sterling.
Investment:
$4.5 million.
Thatcher claimed he never knew.
That appeared credible.
North Harbor’s capitalization records listed Coral Gate only as a passive investor.
Its beneficial owner had not been disclosed internally to Hale Meridian’s audit committee.
Sterling stood on both sides.
CEO of the company providing favorable services.
Investor in the private project receiving them.
Lenora had not known.
Neither had the independent directors.
Suddenly Sterling’s desperation looked broader.
If North Harbor failed, Thatcher lost millions.
Sterling lost millions.
Hale Meridian faced write-downs.
And investigators could ask why family-company resources had subsidized a CEO’s private investment.
Then Sterling made a counterattack.
His lawyer notified police that Kalista had caused facial injuries by kicking him.
True.
He also filed a civil claim.
Kalista’s attorney did not panic.
“Your action is on video.”
“I know.”
“He has every right to seek damages.”
“I know.”
“That doesn’t erase his conduct.”
“I know.”
Kalista paid for Sterling’s documented medical treatment through her insurer while liability proceeded.
Her kick had broken no bones.
It caused bruising and a cut inside his mouth.
Still real.
The criminal prosecutor offered Kalista a diversion program for misdemeanor assault.
She accepted.
Anger-management classes.
Community service.
No conviction if successfully completed.
Several relatives told her not to.
“They’ll use it against you.”
Kalista looked at Naomi.
Naomi said:
“They already know you kicked him.”
So Kalista signed.
No double standard.
Sterling’s kick against Lenora would face its own consequences.
May you like
Thatcher’s slap against Kalista would face its own.
Kalista did not need innocence to prove they were guilty.
