‘I see,’ said Fox slowly. ‘It all boils down to power. Money on this scale buys political and financial influence.’
‘What can be done about it?’ Sarah Wilson sat up straighter and crossed her legs. She had good legs, he noted in spite of himself.
Higgins smiled grimly. ‘This is different from large fraud, or a company going bust, or a financial institution collapsing. Those are usually one‑off events which the stock market can ride – sometimes a pretty bumpy ride, but confidence in the market will usually be regained. However, if the press find out about this scenario, it could have a catastrophic effect. It’s no exaggeration to say we could face a complete lack of confidence in the whole of the financial system, and in many other financial institutions besides. Billions could be wiped off shares prices if the scandal were to break. Worse even. We simply can’t even predict the consequences.’
Higgins stopped to let his words sink in. Privately, Fox felt stunned. Sarah Wilson still looked a model of composure, as if she knew more than he did.
‘Do you have any idea who’s behind it?’ Fox asked at last.
‘None whatsoever. But someone has control of vast sums of money and somewhere they’ve left a trail. It’s back to basics on this one. We need someone reliable to sniff out those loose ends and follow the money. More of a bloodhound than a Fox, in fact.’ he permitted himself a thin smile at his little joke.
Fox addressed Sarah Wilson. ‘What have the City Police on this?’
‘The Stock Exchange tried to carry out its own investigations before calling us in,’ she answered. ‘We’ve only just been briefed. The answer is, not much.’
‘So what’s my role?’
‘We want to set up a special unit,’ Sutcliffe butted in, having successfully lit his cigar, ‘to co‑ordinate everything. You, Fox, will be in charge of this unit. DCI Wilson will put you in the picture.’
‘Yes sir,’ he said smiling at Sarah, who smiled back.
The best lead we have,’ she began, ‘is a private bank in Zurich which is often involved when these shares are bought. It deals on behalf of third parties, so the bank itself could be quite unaware of the significance of these transactions. Even if we had more information from the Swiss police, which unfortunately we don’t, everything the bank does is quite legal in Switzerland. There are also banks in Gibraltar, New York and the Bahamas which might be involved.’
‘As you can see,’ Higgins interrupted, ‘this whole thing is a ticking bomb. We need to investigate before too many departments become involved. As things stand now, only the Home Office, the Stock Exchange and a few people in the City and Metropolitan Police know about it. The Prime Minister has asked to be kept personally informed on our progress.’ He paused for maximum effect then went on, ‘Tomorrow the High Court will issue a Public Interest Immunity Certificate. That should keep the press off our backs for a while.’
Sutcliffe pointed at Fox with the wet, chewed‑looking end of his cigar. ‘We’ve decided to base the unit at Southfields Police Station, Garratt Lane, well out of the limelight. You, Fox, will report direct to me. You’ll have five officers under your command. Also at your disposal will be an accountant and barrister who specialise in international finance. The operation will be known as Operation Vagabond.’
CHAPTER FIFTY-ONE
_________________________
Lodeve, March 1987
John was alone with Madame Poupognot in the farm house when the special line rang. It was Arthur.
‘I’ve just been informed that a police unit was formed some months ago to look into questionable share dealings on the London Stock Exchange. They’re calling it Vagabond.’
John was silent for a moment, collecting his thoughts. ‘It’s not good news,’ he said finally, ‘but I suppose it had to happen . I’ll talk to Erick. We’ll have to keep an even lower profile. Arthur, tell the Clarks to monitor the position every day and report back to you. Although I don’t see what the police can do since our operation is outside their jurisdiction.’
‘I can’t answer that,’ grumbled his friend, ‘because I don’t really know what you’re up to.’
‘Moan, moan! That’s because you don’t need to. Thanks for the call.’ John put the receiver down, then lifted it immediately and dialled Erick.
‘Marseilles airport, two o’clock tomorrow. I’ll meet you.’
* * *
John picked Erick up and drove him to a bar in the Desivalies Clary area of Marseilles. They sat at a table at the back, John wearing his Panama hat pulled down low over his face.
‘What’s this about exactly? Your phone call made me nervous,’ Erick asked.
‘Take it easy. Drink your aperitif, smile and relax. This is just a organisational problem.’
‘Not before you’ve told me what this it’s all about.’
‘Arthur’s told me that the police may be investigating our share purchasing. They’ve set up a squad to look into the Stock Market movements of foreign investors. So how bad is this?’
Erick drew in a deep breath. ‘Most of the shares are bought via companies we control, through nominee directors, so I can’t see how the police can find the source of the funds as our names aren’t on any official records anywhere. But there are nominee companies, based outside the United Kingdom, which exist only to buy shares. These can look suspicious, although actually it’s quite common practice.’
‘How can we overcome this problem?’
Erick stared round the near empty bar. ‘We could place these nominee companies into Purcell’s ownership. Then the buck would stop there. The police would think he financed the share buying. Purcell would have to do some explaining, though.’
‘That sounds a possibility. Tell me, Erick, how far away are we from our overall target?’
‘At the moment we’re investing only in Jensen shares. We have a firm promise from Jensen and his wife that they will sell us their personal holdings, which will be the key to it all.’
‘Will they really sell to someone outside the family?’
‘No, but they’ll sell to Randolph Purcell, who is Vanessa Jensen’s brother. We’re working on the terms and conditions now. As Jensen’s shares will be bought by Purcell Industries, the police won’t even look at it.’
‘So one day Purcell Industries will be our flagship, the basis of the whole enterprise? Aren’t we maybe making ourselves too dependent on Randolph Purcell?’
‘I don’t think so. Up to now he has fulfilled his part of the bargain. Purcell shares are going up and will jump even higher when the Jensen deal becomes public knowledge. He benefits personally.’ Erick hesitated. ‘But we’ll owe him a big favour.’
‘And when does the deal go through?’
‘At the end of August, if all goes well. I can’t do it more quickly. It depends on the money coming in and what loan support I get. The Jensens are environmentally conscious and will be devoting the rest of their lives to the green cause. They won’t sell unless the buyer commits a substantial sum every year to green charities.’
‘Go on,’ John said, as he paused.
‘The final price still has to be agreed. We have to show that the funds are available, deposited in an account, awaiting Jensen’s signature to the agreement. Also the amount covenanted to the environmental charity has to be finalised.’
‘August? That’s months away.’ John sounded sombre and Erick glanced at him in surprise. For the first time he noticed that John was looking much older than his 48 years. His hair was thinning, his shoulders stooped, and now he wore glasses most of the time.
‘I could try to push things along, but so far as I can see, we won’t have the funds available before that. We could give up on this deal completely, sell the Jensen Trust shares we have already bought and wait for another target. Or just stay where we are now and play it safe.’
John said nothing. He wondered if they were pushing this deal too far. But in just two months they could achieve what the
y had set out to do. No, they should not panic now.
‘OK,’ he said. ‘Go on with it, Erick. But arrange a meeting with Purcell in London or in Mallorca and get everything straight with him. Ask him directly what he wants for his support. We don’t want a demand, just before we are going to sign the agreement.’
‘A date has been agreed for the Jensen meeting. It’s the twenty‑eighth of August, in Cannes. I’ll go back to Mallorca and leave for London tomorrow.’
* * *
In London, Erick and Andrea stayed in a rented terraced house in Radnor Walk, just off the Kings Road by the Town Hall. Erick did not want to stay in a hotel. The meeting with Purcell had been set for one o’clock at the head office of Purcell Industries. Erick had never been there but, without quite knowing why, felt uncomfortable that Purcell had insisted on holding the meeting on home territory and not in the restaurant suggested by Erick.
The impressive building was in King Street, St James’s. In reception Erick had to sign his name and was given a security badge saying ‘VISITOR’. When, after that, he was kept waiting in the front office for ten minutes, it was a clear signal there was trouble ahead.
Purcell greeted him as warmly as ever, but somehow Erick sensed he was nervous straight away placed a leather folder on the table.
‘What’s on your mind?’ Erick asked.
Purcell looked hard at him. ‘A clear and different picture is emerging.’ He opened a folder and took out a thin spiral‑bound report.
‘Sometime ago, you asked me to ensure that an article in the Daily News was dropped. I did so. But I also asked for the reporter’s file on the story. Then I employed a private detective to dig up everything he could find about a John Forbes, who featured strongly in the story. These are his findings.’ He waved the report in the air. ‘It makes very interesting reading. I’ve made three copies of it. One is in my safe and another with my solicitor. I think it would interest the various authorities very much indeed, especially coming from me.’ Purcell hesitated for a moment, then pressed home his advantage. ‘I could also publish the story in the Daily News.’
Erick had not been expecting this. This was not a question of merely negotiating a demand – this was a full‑scale battle for control, using blackmail.
‘Can I read it?’ he asked.
‘Just let me finish. I then asked for a report on you. That, too, makes fascinating reading. You can read it later and tell me if anything in it is incorrect. However, that’s not my main concern. I went along with the Purcell‑Jensen merger knowing these facts, expecting some substantial recognition from you. So far nothing like that has happened. And I certainly did not go along with your ideas to have legal troubles. A week ago I had a visit from an Inspector Malcolm Fox, who asked me all kinds of questions.’
He paused to see how Erick received this information. Erick did not move a muscle.
The police want to investigate our share register. I must hand them the computer file on our share ownership. Perhaps nothing will come of that, but it could equally well be disastrous. Only you know. Much will depend on what I tell them. Especially if I mention that my own shares in Purcell plc are legally owned by you and your associates.’ He paused again. ‘I chose to hold our meeting here as I’m being kept under surveillance. Whether it’s by the police or someone else, I have yet to find out.’
‘Can I say something?’ Erick got to his feet. ‘If this is what was on your mind, I understand your anxiety. But this isn’t the time or place for me to answer these allegations. First I need to contact some of my main investors. I suggest we meet again later today.’
His telephone conversation with John was short. To Erick’s surprise, John asked him to bring Purcell to see him in France. They were to lease a jet in Paris, then drive from Marseilles. John would ensure that they were not followed.
At nine o’clock Erick and Purcell arrived at the farm house.
‘May I introduce Randolph Purcell. John Forbes,’ Erick presented the two men to each other. They shook hands.
‘Pleased to meet you,’ said John. ‘Sit down, Randolph. Allow me to pour you a glass of our best local vintage. I’d like your opinion on it.’
Erick decided to leave them to get acquainted and went in search of Cecilia. He found her in the kitchen. They hugged and kissed each other. ‘Sit down for a moment and try this,’ Cecilia suggested, as if she knew he would prefer to leave the guest with John.
Madame Popougnot appeared in the doorway. ‘I keep telling her, Monsieur Elgberg, that they should decide to marry, then everything will be comme il faut,’ she grumbled.
* * *
‘Erick is a very straightforward and uncomplicated man. He thinks the best of everyone,’ John said to Purcell over the bottle of wine. ‘I’m the complete opposite. I expect the worst of everyone and I don’t react well to threats.’
He spoke softly although Purcell sensed the signification underlying his words.
‘I think you and I must reach an understanding. For my part, I’ll forget you ever threatened me, while you will hand those reports to Erick tomorrow. You will go along with everything we ask you to do regarding the police investigation into your shares and you will back the coming merger with Jensen Trust fully without making any further demands. When you’ve done that, I will start then to regard you as a friend.’
‘Why should I? What’s in it for me? I am not getting involved with you, whoever you are.’ Purcell had obviously decided his best form of defence was attack.
‘You’re a brilliant industrialist. You’ve built up a colossal company from nothing. I’m a mere lavender grower of whom nobody has heard. But I’ve got real raw unsophisticated power and when push comes to shove I own your company.’ John paused, his eyes fixed on Purcell. ‘If we fall out, it’ll mean the end of both of us. You’ll soon realise that.’
‘Are your people following me?’ blustered his visitor.
‘No. The police have been keeping an eye on you because of our share dealings. But I’ve made sure you haven’t been tailed today. For both our sake.’
Purcell nodded, taken aback by the reasonable, friendly tones of this man who was issuing a serious threat to him.
‘The question you have to ask yourself is,’ John went on, ‘do you want outright war with me? You came to Erick when you were in trouble. You had already committed fraud by forging share certificates. We offered you a way out of that situation. But your petty fraud will be as nothing compared to the scandal there would be if it became known that not only the purchase of Purcell Industries itself, but also many of the companies Purcell Industries controls were financed by the proceeds of criminal activities such as drugs, funding of criminal operations and fraud on a massive international scale.’ He took a slow, careful mouthful of wine. ‘Once you’ve been found guilty of your paltry share fraud, no one will believe you knew nothing of the financing of the merger, which will double any sentence. And then you’ll find yourself in the worst prison in England, doing the worst job, trust us to arrange that, worrying about the gruesome day of your release when we will settle your debt to us.’
Purcell licked his lips. He said slowly, ‘And the other option?’
John smiled and held out his hand. ‘We shake hands now and co‑operate. No more talk about going to the police or any threats ever. A handshake between people like us is more binding than any written contract, don’t you think? It’s irrevocable.’
‘ I need time to think.’
‘Of course.’ John smiled. ‘You have thirty seconds.’
When Erick came back John said casually, ‘Our little misunderstanding has been settled. I now have complete confidence in Randolph. You can give him our full support. The reports on both of us, including the copies, will be given to you tomorrow in London.’ He rose, opening the door to the terrace. ‘And now let’s enjoy one of Cecilia’s delicious meals.’
Erick looked puzzled. He had been out of the room for less than ten minutes.
Ce
cilia carried plates to the table on the terrace, followed by Madame Popougnot.
John took Cecilia’s hand. ‘I would like to introduce my fiancée. Although I also love the elder of these ladies, I have chosen the younger one. It goes without saying that I expect you and Andrea,’ he said to Erick, ‘and Randolph and your wife, Dorothy isn’t it, to join us for the wedding sometime in the Autumn.’
During dinner they discussed the inevitable publicity about the Purcell‑Jensen merger and the amalgamation of the other companies to form the group of groups, which they knew would affect share prices.
The whole affair must be handled very delicately. If they could carry this off, the Company’s financial advisors had worked out that share prices in Purcell Industries and Jensen Trust could well add around ten per cent to their current value. This would represent a profit on paper of over forty million pounds.
Purcell nodded and smiled and did his best to appear like a guest who was delighted to be sharing John’s table, but from time to time Erick caught a glimpse of the shock and fear he could barely suppress.
Randolph Purcell had gambled and lost. Now he was obliged to sup with the devil and no spoon was long enough to keep John Forbes at bay.
Erick knew what it felt like and could almost find it in himself to pity Purcell.
CHAPTER FIFTY-TWO
_________________________
London, July 1987
Six months had passed and Malcolm Fox had started making progress.
He had ascertained that, besides the three companies Sutcliffe had mentioned, another three recently taken over could also be possible victims. His team had managed to uncover the modus operandi: owners of shares had been approached individually by highly respectable firms of solicitors, and the price offered for their shares had been higher than their market value. If a shareholder demanded an even higher price, that too appeared to have been paid. Small amounts of other companies’ shares were also bought daily at the Stock Exchange, the change of ownership then being registered at the head office of each company.
Obviously, some of the foreign banks involved in financing these deals could themselves have been taken over. However, as Higgins had said, the Zurich bank had not changed its board of directors for several years.