Chapter 14 - The Preschool Sale
The civil court approved sale of Milford Early Learning to another childcare operator.
The school remained open.
Same teachers mostly.
New name:
Harbor Oaks Academy.
Cindy lost ownership.
Sale price:
$640,000.
Debt payoff:
$352,000.
Transaction costs.
Net:
About $260,000.
A significant portion placed into escrow for Sally’s civil claims.
Cindy’s condo?
She negotiated to sell rather than face lien enforcement.
Net equity after mortgage:
$168,000.
Some tied to misappropriated money.
Again escrow.
Other accounts:
$41,000.
Garrett’s structured repayment:
$50,000 over years.
Total potential recovery approached:
$450,000 before legal fees.
Remarkably close to original loss.
But time value?
Years of lost investment.
Legal fees.
Sally sought prejudgment interest.
Court mediation continued.
Cindy finally faced arithmetic.
Then she changed.
Not morally yet.
Practically.
Her attorney said trial risk high.
Settlement offered:
$410,000 immediate from escrow and assets.
$35,000 additional over five years.
Garrett separate $50,000 repayment directly to Sally? That could double if included. Let's structure:
Cindy settlement $395k plus property escrow etc, Garrett voluntary $50k, total near $445k. Sally's original traceable loss ~438k plus costs. Fine.
Sally accepted a civil settlement of $432,000 from Cindy-controlled assets, including sale proceeds and account funds, plus attorneys' fees contribution. Garrett separately repaid $50,000 over time because he had received it. That gave Sally slightly above principal but far below what invested money might have grown to.
No jackpot.
Then criminal case.
Cindy pleaded guilty rather than trial.
She admitted:
Unauthorized access to Sally’s brokerage.
Identity misuse.
False financial transfers.
Concealment.
She did not plead to “destroying marriage.”
Not crime.
Sentence:
Home confinement plus probation? Given age ~maybe 63, no prior, financial theft substantial. Could be short custodial term. Let's say a short custodial sentence followed by supervised release and restitution, taking civil recovery into account.
She lost professional control.
No preschool.
No condo.
Moved to smaller rental after release.
Then Garrett asked Sally:
“Does getting the money back fix anything?”
She said:
“No.”
Then smiled slightly.
“But it pays rent.”
Practical.
Then she did something surprising.
She placed most recovered money into:
A home fund.
Lily education.
Emergency savings.
She did not buy a mansion.
At thirty four, she still dreamed of a house.
The thing she had been saving for when Cindy stole it.
Then Garrett asked:
“Can I contribute?”
“To Lily’s education account.”
Not Sally’s house.
Boundaries.
He did.
Then Leland Croft finally retired from volunteer law.
Again.
This time real.
Sally organized a small thank you dinner.
Garrett was not invited.
May you like
Correct.
Some relationships did not need convergence.
