Chapter 9

The independent audit took four months to produce preliminary findings.
The numbers were worse than Taryn expected.
Over two years, Fairmont Crest had repeatedly transferred money from service-charge, banquet compensation, and local payroll-clearing accounts into central treasury near reporting dates.
Gross movement:
$8.6 million.
That did not mean $8.6 million disappeared.
Most was returned.
The meaningful problem was the period in which the cash was treated as unrestricted for lender reporting while corresponding obligations remained outstanding.
The auditors identified $3.4 million in employee-related payments that had been delayed beyond internal policy or contractual timing at least once.
Some delays were only days.
Some longer.
At two union properties, the practice also conflicted with collective bargaining language.
At one hotel, state service-charge disclosure rules created potential wage claims.
The company established a remediation reserve.
Employees received corrected payments, interest where required, and independent notices explaining the review.
Nobody called it a favor.
It was money they should have received correctly the first time.
Then the auditors reconstructed Fairmont Crest’s liquidity.
Without the quarter-end sweeps, the company would have fallen below existing lender minimums twice and come dangerously close twice more.
Would lenders have immediately seized hotels?
No.
Banks often granted waivers.
The company had valuable assets.
The realistic consequence would likely have been:
Higher interest.
Additional reporting.
Restrictions on distributions.
Possible asset sale.
Embarrassment.
And scrutiny.
Doreen had chosen concealment over asking for a waiver.
Why?
The Crestline transaction.
Crestline’s investment agreement required Fairmont Crest to be in compliance—or disclosed waiver status—with existing credit facilities.
A covenant breach would not necessarily kill the deal.
It would reopen price and governance negotiations.
Most important:
Doreen’s enhanced five-year chair authority could disappear if her personal voting position weakened before closing.
Then investigators found the final personal exposure.
Doreen’s $14.5 million share-backed loan was not the only one.
She had guaranteed another $6 million family-office facility used to buy out the estate of her late sister.
That purchase was how Doreen obtained the shares that gave her undisputed family majority.
She had not spent the money on yachts.
She had spent it buying control.
Her total personal leverage tied directly or indirectly to Fairmont Crest shares exceeded $20 million.
Still manageable for someone with her wealth.
But if share valuation fell and distributions were restricted simultaneously, she might need to sell a meaningful block.
That would end her majority.
Taryn finally saw the shape.
Doreen had spent years borrowing money to make sure no one could outvote her.
Then she used temporary corporate cash manipulation to protect the company metrics that protected the share value that protected the loans that protected her control.
A circle.
May you like
Closed.
Until Lula’s birthday broke it open.