Chapter 6 - The Account Ending in 7713
Police obtained warrants and subpoenas.
The payroll account ending in 7713 belonged to Prescott Hospitality Holdings.
Not Chloe.
Each month, payroll software generated an $84,000 annual salary allocation under Chloe’s name.
Taxes were withheld on paper.
Net funds moved through a payroll-clearing account.
Then deposited into a restaurant-controlled account labeled:
Executive Reimbursement Reserve.
Damian’s accountant Peter Ames claimed it was an administrative error.
Eight months of administrative error.
Susan nearly laughed when she read deposition.
The total net “salary” credited under Chloe’s name:
$46,870.
She received:
Zero.
The restaurant used those funds for operations.
Worse, tax forms reported income to Chloe.
She could have ended year owing tax on money she never received.
The accountant said Damian instructed him:
“Chloe’s comp stays in company because she’s an owner.”
She was not an owner according to real capitalization records.
Only the forged $300,000 subscription agreement suggested otherwise.
Peter Ames became central.
He had seen documents.
Signed as witness.
Approved payroll.
Was he conspirator?
At first, prosecutors considered.
Then evidence showed Damian lied to him too.
Ames believed Chloe had agreed to defer salary and roll it into equity.
He had emails from Damian saying:
“Chloe wants all comp retained as capital contribution.”
No Chloe copied.
Still poor accounting.
Still professional negligence.
But not enough evidence he knowingly participated in coercion.
He cooperated.
Lost his restaurant client.
Faced licensing review.
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No criminal charge.
Again, not everyone near wrongdoing was mastermind.
