Chapter 13 - The Restaurant’s Investors
The Hearth had three minority investors.
They believed Chloe invested $300,000.
Why?
Damian sent capitalization summary.
PRESCOTT: 62%
CHLOE PRESCOTT: 12%
INVESTORS: 26%
False.
No membership interest was ever properly issued to Chloe.
No corporate resolution.
No contribution records matching $300,000.
Yet Damian used her supposed equity to reassure investors that his wife had “skin in the game.”
One investor, Raymond Cole, had loaned another $250,000 after seeing the schedule.
He was furious.
“Is Chloe saying she never invested three hundred?”
“Yes.”
“What about one forty?”
“She transferred that much under circumstances being litigated.”
“Was that equity?”
“No valid issuance.”
Raymond retained counsel.
The financial case broadened.
Not into giant conspiracy.
Into misrepresentation.
Damian had been telling different stories to different people.
To Chloe:
You owe me.
To investors:
She invested.
To accountant:
She deferred salary.
To lender:
She guarantees debt.
To insurer:
She is key executive.
To employees:
She is failing wife who deserves punishment.
One woman.
May you like
Five financial identities.
All useful to him.
