[Music] growing up in a small town I admired people who overcame their circumstances to achieve greatness my brother Jeff and I shared that admiration though our lives were often shaped by circumstance watching the Maple Grove Mills a key part of our community decline after being taken over by outside investors was tough as the local economy crumbled so did the town's spirit and I realized real change had to come from within years later after establishing our careers an opportunity arose we co-founded Falcon Associates with Lucy Dennis and Marty aiming to not just revive a business but to restore a way of life that was disappearing although none of us could predict the challenges ahead we were hopeful we each earned $250,000 annually reasonable for a startup in a risky industry with standard benefits to address Jeff's security concerns we hired a firm for ongoing protection Lucy and Dennis also opted to keep their families out of the public eye in case of the worst we all had life insurance policies worth $10 million to protect our families I'm Roger Richardson born and raised in Rose Valley you'll notice I didn't call it home and that's Central to my story Jeff and I weren't M kids our parents ran Richardson's Garden the town's only Chinese restaurant opened in 1947 by our grandparents it still operated by our mom today my grandfather a veteran and Son of Portland restorators saw an opportunity in Rose Valley to open a place catering to soldiers returning from the Pacific who craved Asian flavors the restaurant originally kept some of the menu from the coffee shop it replaced including the famous fried chicken recipe which is still served every Friday my grandparents lived above the restaurant until they built a house and Tea Garden behind it after my dad was born when grandpa passed and Grandma retired my parents took over and Jeff and I spent our childhood afternoons there under Grandma's care my childhood friend Kathy Henderson lived next store to my grandparents house her father was a sheriff's deputy and her mom worked part-time at Richardson's Garden when we were kids Kathy told her mom she would marry me someday and we did we stayed close through school and after Cathy graduated we both went to Portland State University in 2001 I earned my MBA Kathy got her accounting degree and Jeff passed the Oregon bar we all returned to Rose Valley to start our careers Jeff is a lawyer Cathy as an accountant for Maple Grove and me as an engineer Kathy and I have had been unofficially engaged since childhood but we made it official after returning home getting married that September in 2002 tragedy struck Cathy's dad was eliminated in an accident and later that year my dad passed away from pancreatic cancer our moms decided to live together and Kathy and I moved into my childhood home where we started our family our daughter Lana was born on October 24th 2003 she was perfect Rose Valley had always seemed insulated from National Economic swings especially with Maple Grove Mills producing Goods people always needed however when the housing crisis hit even our town felt the impact though we didn't have the large homes sprouting up elsewhere many locals were lured into refinancing at low rates only to find themselves in deep debt when the bubble burst in 2008 that's when Daniel Moore president of more Equity Partners appeared his private Equity Firm offered to buy Maple Grove Mills promising salvation for those struggling with mortgages the town split between those supporting and opposing the buyout I was against it believing Congress might offer relief soon and that Moore's offer undervalued the company plus Moore himself came off as arrogant and something about him felt off despite these concerns most people voted for the sale enticed by the money that would help pay off their debts in October 2008 Maple Grove Mills became Maple Grove Inc ending its 102-year local ownership problems began right away local farmers were forced to lower prices quality control issues emerged and even the packaging suffered yet management claimed everything was fine because profits and sales were up I couldn't understand how such poor management could still run a profitable company my concerns grew and I began to question if I should leave and help my mom run Richardson's Garden instead Kathy my wife didn't share my worries insisting it wasn't our responsibility as employees to care about the company's direction as long as paychecks kept coming our conversations about work became fewer and Cathy wasn't happy about my thoughts of quitting meanwhile Lana's solution to my frustrations was hosting tea parties with her dolls which always made me smile in January 2009 a new president took office and the government rolled out programs to help homeowners while some still debate whether these programs worked I remained frustrated that we couldn't convince the Mills employees to hold out and try for a better solution by summer 2009 it was clear this wasn't just another recession the economy was in free fall and despite reporting record profits Maple Grove started laying off employees for the first time since the Great Depression management assured us the layoffs wouldn't be longterm and that sever benefits would help however it was clear that the 30% let go were mostly those who had opposed the sale to more Equity Partners Youk get your kitchen job after all Kathy mocked as we waited for my turn to be fired I ignored her focusing instead on spending time with Lana when HR called me I told Sharon the manager to skip the severance talk I refused to sign the non-disclosure agreement or waiver Sharon who had also voted against the buyout understood my frustration we parted on good terms and I invited her to dinner at the restaurant sometime after leaving I picked Lana up from school Cathy didn't answer her phone so I called her and Lana's grandmothers to let them know they wouldn't need to pick Lana up something felt off when I got home and I soon found Cathy's note on the kitchen table she said she was leaving me for someone better taking Lana and if I didn't sign the divorce papers I'd never see my daughter again I immediately called Jeff telling him what happened he urged me to leave the house and bring the note to his office once there Jeff and his boss Alex quickly read the note Alex explained that Cathy's plan had failed she intended to take Lana while I was busy in an exit interview probably heading out of state Jeff asked if I knew who she was leaving me for but I had no idea likely one of the managers Moore had brought in though Kathy never mentioned names Alex reassured me that Oregon law prioritizes the child's best interests not the parents gender and that Cathy's threat would work against her in court he explained that since Lana was with me and we had a strong family support system Cathy's note would backfire threatening to withhold a child to force a spouse to sign divorce papers would be a major strike against her in custody decisions we filed a counter claim arguing that Cathy's plan to take our daughter and use threats to force my signature on the divorce papers proved she shouldn't have custody since I left work early and picked up Lana her plan failed the court granted me temporary custody and we prepared for a legal fight it wasn't long before Cathy's someone better was revealed Daniel Moore not surprising right Moore's arrogance and wealth worked against him in court Jeff became my lead attorney with Alex advising the sight of Moore's expensive legal team trying to bulldoze a small town lawyer representing a newly unemployed father fighting for his daughter didn't sit well with the judge Cathy's own mother testified in my favor offering to help me care for Lana and her support sealed the case when Cathy's threatening note was shown in court Moore's lawyers looked visibly uncomfortable the judge took Cathy's note at face value ruling that she'd given up her claim to any marital assets our house and family business were in my mom's name so the assets were limited to cars IAS and bank accounts more importantly the judge agreed that Cathy's threat showed she didn't have Lana's best interest in in mind I was granted full custody of Lana with Cathy allowed supervised visitation Moore showed up on the last day of the trial expecting Victory but left looking shocked and defeated that night we closed the restaurant to celebrate privately I spent most of it comforting Cathy's mother Nancy who had supported me in court a few weeks later Cathy married Daniel Moore and moved to Los Angeles though she flew back to organ for weekly visits with Lana things were difficult Kathy and her mom often got into shouting matches during the visits and after one especially bad argument Nancy banned her from the house we moved visits to the restaurant where Cathy's mother would sit outside keeping a close eye on her my idea of returning to the restaurant full-time was premature with my mom still running it and no plans to retire I wasn't needed then my former boss from Maple Grove Marty who was also fired stopped by to discuss starting a new business with other ex-managers I immediately agreed to join them the idea behind our new business Falcon was to unite the suppliers that Maple Grove had dropped or low balled and create a Cooperative we aimed to produce highquality products and sell them to Boutique natural food retailers who are rejecting Maple Grove's lower quality Goods our advantage was the good relationships we had built as the former management team at Maple Grove since we weren't operational yet Marty would handle production when the time came my role was to apply my MBA drafting a business plan to secure funding and a marketing plan to convince suppliers we could sell what we produced then I got the call Roger Jeff shouted when I picked up what's going on I asked worried by his tone Cathy tried to take Lana Nancy tried to stop her and now both are in the hospital it's bad Roger you need to get here I dropped everything and sped home with Jeff filling me in Cathy had tried to take Lana during her visit when Nancy intervened Cathy's driver pepper sprayed her despite being in pain Nancy chased after them when Lana saw her grandma she broke free and ran back but she was struck by a truck the driver wasn't at fault he just couldn't stop in time Nancy died in the ER and Lana lingered in a coma for 8 days before passing she would have turned seven the next month after that I shut down emotionally I vaguely remember the doctor telling us Lana was gone then somehow finding myself in the restaurant kitchen Days Later cutting up a chicken without remembering how I got there my family watched over me making sure I didn't hurt myself Arrangements were made for both funerals I learned Nancy had named me her next of kin and left everything to Lana and me in her will as her only son-in-law and with no sons of her own I was responsible for her final Arrangements I couldn't live in the house anymore it was too painful I moved into Jeff's apartment and Jean moved into the house as he needed to be close to the restaurant mom stayed with me most of the time but returned to the house to sleep Cathy and her driver were arrested at the scene Witnesses told the police what had happened the da charged Cathy with first-degree custodial interference and the driver with second degree hijacking the driver was also charged with third degree attack for pepper spraying Nancy because these were felonies they both faced two counts of felony liquidation for the end of lives of Nancy and Lana with sentences of up to 25 years at the arrangments Jeff and Alex presented Kathy's prior threat to take Lana and the fact that she had left me for a wealthy outof State man whose driver was involved the judge deemed both Cathy and the driver flight risks and denied fail the da warned us they might not be convicted but expected a plea deal Jeff asked if Moore's involvement could be proven but the da doubted it they tried offering leniency in exchange for implicating more but neither Kathy nor the driver cooperated in the end they pleaded guilty to two counts of second deegree manslaughter and receiv received concurrent sentences eligible for parole after serving 6 years I didn't submit a sufferer statement at their sentencing while some feel satisfaction or closure after a sentencing I felt nothing the following months were a blur with time flying when I was working and crawling when I wasn't nights were the hardest and I buried myself in work to cope one day while working in the Tea Garden I received a call from a woman named Sophie sulis asking to speak with me on behalf of Amon Solus a billionaire shipping magnate Ean wanted to discuss a partnership so I agreed to meet him 3 days later I checked into Timberline Lodge there was a message waiting for me inviting me to dinner at a nearby luxur condo when I arrived I was greeted by Amon and Sophie his daughter-in-law after dinner Amon explained that he and Sophie had their own experience with Daniel Moore Aman believed Moore was responsible for his son arman's liquidation Arman Suli had risen from humble beginnings amassing a fortune through illegal means before changing his ways to win the love of his wife Mano she inspired him to dedicate his wealth to good causes founding the Manon sui Foundation to combat poverty and exploitation after her end of life their son Andre took over the foundation the foundation became involved in negotiations in the impoverished state of San Lawrence where a deal was being made to fund schools and hospitals in exchange for granting over half a million Acres of rainforest to an energy and Mining cartel the foundation proposed an alternative plan funding fewer schools but protecting the land from deforestation and exploitation the president of San Lawrence had welcomed Andre sulis for a summit with local officials and tribal leaders however their plane disappeared over the rainforest and shortly after the vice president took over as president The Disappearance was blamed on ECOT terrorists and negotiations with the soless foundation ended abruptly the deal with the mining cartel funded by more Equity Partners was quickly pushed through leading to the destruction of the rainforest you saw that coming didn't you Eman said bitterly he believed Moore's money had motivated the vice president though he blamed the new president for his son's end of life I recall Jeff's words to our da about Moore being behind my family's tragedy Ean admitted he wanted Revenge but resisted because his late wife manone and son wouldn't have approved Sophie his daughter-in-law also firmly opposed any violent actions aan shared a photo of his grandchildren explaining that yielding to his darker instincts could cost him his relationship with them when I asked why we were meeting Eman explained that Sophie had agreed he needed to act but within legal and ethical bounds Sophie then presented a folder detailing Moore's destructive business practices including his acquisition of a bakery in Illinois after initial growth the company collapsed leaving hundreds jobless part of a pattern seen with other companies including Maple Grove Mills ean's proposal was clear someone needed to rescue these companies and prove that businesses could succeed with Integrity he suggested I take the lead using my experience battling more in the divorce and custody case as a public public face eeman and Sophie couldn't act directly as it would look like rich people playing with businesses but I could step in as someone with a personal stake skeptical I asked if we could really succeed Eman pointed out that we were already trying to start a business based on Integrity he offered to provide the resources ensuring the rescued companies wouldn't fail unlike Moore's Ventures Sophie clarified that they wouldn't fake profits like Moore but truly support the company's growth Eman promised that even if the Venture ultimately failed workers would benefit from restored jobs and a soft Landing I agreed to discuss the plan with my associates ensuring complete transparency with them the Falcon group consisted of four members Marty Ball my former Maple Grove manager Lucy Armstrong Cathy's ex-manager and finance Dennis McCoy Maple Grove's former Tech manager and me we hadn't yet decided on my role Beyond drafting business and marketing plans Jeff and Alex were involved for legal counsel as they would handle our legal Affairs if we officially became business we met at the restaurant reviewing the proposal from Timberline while having dinner Marty and Lucy were impressed while Dennis agreed as he sampled a new dish Lucy questioned the legality and Alex explained that as a privately owned company the plan was legal as long as no false claims were made to investors or lenders Marty noted this clarified my role in Falcon as heading Business Development and marketing though Jeff expressed concern he pointed out that Eman wanted me as the public face of the Venture which could put me in more crosshairs if we succeeded in tarnishing his reputation Jeff's worries were valid but we moved forward regardless we drafted a counterproposal addressing these concerns and our group including Jeff and Alex returned to meet with Ean and Sophie to finalize the details Falcon Associates was established as a New Mexico Anonymous LLC where the owner identities remained private Jeff and Alex would represent us individually while a separate attorney would serve as corporate counsel Ean and Sophie owned 50% of the company and the four of us owned the other 50% ensuring no single party had control we agreed to make decisions as a unified block externally we would appear as employees of Falcon Marty as director of operations Lucy as Director of Finance Dennis as director of technology and I as managing director whether I would also lead Business Development and marketing was undecided until we understood the resources available in the companies we aimed to rebuild we set equal salaries of $250,000 per year reasonable for a high-risk startup we also arranged standard executive benefits and a 247 security hotline for our families Lucy and Dennis opted to stay out of the public eye due to their families and each of us had a $10 million life insurance policy for worst case scenarios a week after signing the agreements aan informed us our salaries and benefits were in effect and Falcon had $100 million in working capital with a $100 million Reserve Lucy was stunned when the financial statement arrived it was a fraction of ean's wealth but more than any of us had ever expected to manage 3 weeks later the Illinois Baking Company closed leaving 316 workers unemployed soon after Falcon Associates LLC successfully bid to acquire pathway Bakery Inc for $28 million with plans to reopen the facility by mid December Falcon managing director Roger Richardson stated their goal was to rebuild pathway with a focus on people and quality in the toxic culture under its previous owners Falcon's acquisition was big news in celton Illinois a town hit hard by job losses since 2007 former pathway workers like Reena and Andy Dean felt betrayed by more Equity Partners who had promised work before suddenly shutting down the plant now just before Christmas Falcon had acquired the plant and planned a public meeting to discuss its future at the meeting held at Kelton High School the 600 seat Auditorium was packed with many attendees bringing their families former employees Had Each received an envelope which they were instructed to open during the meeting inside were rehire letters offering them their jobs back along with a $1,500 prepaid Visa card to help with holiday expenses Roger Richardson along with Marty Ball explained that while the plant wouldn't be operational by Christmas due to neglected equipment employees would return to work in stages starting in 2 weeks health insurance benefits had already been reinstated and all salaries and seniorities would be preserved the crowd responded with cheers Applause and tears of relief the night ended with a buffet in the school gym where Falcon Associates officially welcomed back the pathway workers and their families I couldn't resist one more jab during interviews after the meeting highlighting how the new pathway would succeed on quality and integrity everything the previous owners lacked that evening we shook hands with soon Tobe employees and their families who just weeks earlier had lost hope seeing the change in their eyes was uplifting as we headed to the hotel Marty asked think any of this is getting back to more no clue I replied but it feels pretty good headline Falcon gifs displaced pathway workers $1,500 December 12th 2011 Kelton record Falcon Associates surprised former pathway workers by giving them $1,500 Visa gift cards Falcon based in Albuquerque plans to reopen the Kelton Bakery next week and initially hiring 70 workers with hopes of rehiring all 300 by February Mary gladen a former employee was brought to Tears by the unexpected generosity I didn't think I could give my kids much this Christmas now I can Falcon's announcement made headlines Nationwide videos from the meeting went viral and news stories popped up with titles like pathway Rises From the Ashes and Miracle on Kelton Boulevard one article even dubbed me the new George Bailey while Daniel Moore was portrayed as Scrooge mcore unsurprisingly media attention turned to who we were the Press Unearthed my divorce from Kathy her marriage to Daniel Moore and the tragic end of lives of Lana and Nancy although I declined to discuss my personal tragedy we knew the story would eventually surface it had all the elements of a soap opera a wealthy millionaire fires a third of a Town's workers seduces a fired worker's wife loses in court and is ultimately linked to a tragic hijacking attempt that ends in two end of lives then the fired worker and his former colleague start a new company and rescue another Community left jobless by the same millionaire you couldn't script it better some stories were tough to watch especially one that Revisited the site where Lana and Nancy were eliminated I had to turn it off when the reporter filmed the small family altar inside the restaurant where my mom burns incense in front of photos of my grandparents dad Lana and Nancy Jeff denied involvement in the Ambush interview that confronted more outside his la condo where a reporter asked if he felt responsible for Lana and ny's end of life or Cathy's imprisonment Moore's angry response yelling something about failing and losers was the hardest hit he'd taken yet if Jeff did have a hand in it I could live with that the question of whether I would be just the face of the new pathway or take on a Hands-On role in business development marketing and sales was answered with a clear yes pathway's former non-m more managers were eager to return but they needed guidance to shift from restoring the old Pathway to building a new one that could address modern markets since I had been the one to present the $1,500 gift cards and make promises about Rebuilding Together it naturally felt to me to Rally the team and get them excited about the future it took four months to get the pathway plant fully operational due to years of neglect under Moore's management we faced safety violations deferred maintenance and had to replace outdated equipment we also upgraded the office Tech replacing all the computers and saving the hard drives for a secret data project the rest was donated to local schools and nonprofits we invested in our Workforce as well employees who hadn't yet returned full-time received training either to update their skills or prepare for new equipment like robots when asked if robots would lead to job Cuts Marty explained the goal was higher output with the same Workforce much like in the past when output doubled without increasing headcount concerns about selling more pathway products after the decline in quality were addressed by focusing on rebuilding trust with former customers our message pathway is back and better than ever we also expanded into new markets like Organics sugar-free gluten-free and grain-free products which had been ignored under Moore's management but were now growing in demand as it turned out the US gluten-free Market grew by over 60% in the next four years our gluten-free product line launched in summer 2012 accounted for nearly a third of our Revenue cementing my reputation within Pathways marketing team meanwhile Maple Grove Mills having let go of the marketing analysts we hired as consultants completely missed the gluten-free Boom the first year of new pathway felt like my time working on the Falcon Cooperative but on a much larger scale instead of driving around Oregon and Washington building relationships I was flying across the us working on new and renewed Partnerships for pathway many of these renewals were with businesses the old pathway had alienated due to poor quality late shipments and billing issues even though we rehired Pathways marketing and sales teams many clients insisted on hearing directly from me the new managing director that the problems under Moore's ownership were gone I never missed the chance to emphasize that we were a new company completely separate from Moore's pathway the pr efforts paid off sales began to rise and we signed contracts to produce store branded products while this might seem like competition for our own products the store brands didn't cost us anything for distribution or advertising so the profit margins were nearly the same our business plan was working we held two meetings each quarter the pathway meeting included the entire company where Senior Management met in the boardroom and everyone else could log in online though not required as a private company we valued transparency the Falcon meeting was Private just the four of us Eman Sophie and our legal team Eman as the majority shareholder could have led these meetings but he and Sophie preferred to remain silent Partners so we rotated the responsibility at our our third meeting marking one year since Falcon Associates was formed Lucy chaired the session after reviewing the usual updates sales plant performance morale and Tech projects Lucy revealed the financials pathway would end Q4 in the black a year ahead of projections this surprise came from an unplanned contract with champion markets I had met their CEO at a trade show and pitched our private label Services when Champion expanded into the Southwest their existing supplier became overwhelmed so we took over their hard-baked snack line it was a win-win with no job losses and the deal looked promising for long-term success the new pathway's first holiday party was on December 21st 2012 our last work day of the year the company provided the main dishes and employees brought potluck items families and kids were invited with someone dressed as Santa not me we screened It's a Wonderful Life in the conference room and I jokingly told the kids that MrPotter's first name was Daniel never miss an opportunity after a gift exchange under $20 gag gifts encouraged we held a prize drawing and packed up leftovers for people to take home before everyone left I announced we appreciate all your hard work this year and when you receive your final checks there will be a little extra Applause followed it's not a Christmas bonus I added it's profit sharing headline Falcon shares profits with pathway workers December 24th 2012 Kelton record a cheer erupted at Pathways holiday party when Falcon Associates its managing director Roger Richardson announced a profit sharing bonus each employee received $500 pathway employees 325 full-time workers as a private company we don't disclose earnings Richardson said but this year's profits are being shared equally among all employees to show our appreciation for their hard work we are building a new pathway from the ruins of its predecessor never miss an opportunity the next shot in our battle with Daniel Moore came unexpectedly after Grove Mills laid off 150 workers businesses in Rose Valley felt the impact especially restaurants I used some of my Falcon salary to help cover bills at Richardson's garden and my mom and cousin Jean had health insurance through Falcon in January Jeff told me about a strange pattern at the restaurant fired Maple Grove employees were coming in more often and buying takeout for their friends still working at the Mill mom learned that Richardson's Garden had been removed from Maple Grove's list of approved Caterers with management implying there would be repercussions for employees who continued to patronize the restaurant rumor had it that this decision came after Daniel Moore thre a tantrum shouting he would ruin those chinks I shared this with Ean and Sophie and eeman called a teleconference I think we're getting to him I said Jeff agreed Eman raised a concern about security we decided to bring in greybear security who specialized in blending into their surroundings while providing protection we hired a new waiter for Richardson's Garden a retired Navy Chief named Duke pronounced Duke who also drove for Mom and moved into a spare room at her house to assist her if needed according to Mom Duke was an excellent waiter and Drver aan made some calls and a TV chef who featured small town eateries came to Rose Valley he visited local spots including a Breakfast House brewery and an artisan Baker who praised his stone ground flower from a historic Grist Mill the crew deliberately showed the chef driving past Maple Grove Mills without stopping but they highlighted Richardson's Garden Mom and Jean impressed the chef with special dishes from their secret Chinese menu turning the restaurant into a minor gouret destination the extra business more than made up for the loss caused by Moore's attempted embargo word got back that Moore was Furious that Richardson's Garden wasn't struggling but had actually expanded its staff Jeff and Alex hired a new pargal a former deputy sheriff who lost her job when a county Bond failed she rented a room from Alex and his wife and carpooled with them mean Marty Lucy and Dennis opted against full-time security but added someone to the pathway security team they also hired a nanny to shuttle their kids between school and home helping them manage their busy work from home schedules I hired an executive assistant Rebecca Sullivan a former Navy NCO who had handled maltreatment from a superior officer by putting him in the hospital her story of taking him down impressed both Marty and me Marty said she's perfect for you comparing her attitude toward power misusers to mine when talking about more Rebecca was highly competent as an assistant and while I wasn't eager to test her bodyguard skills her presence was reassuring Rebecca and Dave Simpson the new security guard at the executive office moved into condos in the same complex where Marty and I lived they integrated into our work and lives seamlessly with Rebecca and I carpooling to work supposedly to save gas Rebecca's arrival also resolved a staffing issue Moren who had been supporting both Marty and me was reallocated solely to Marty who was now Pathways general manager after its previous manager Harry retired due to health issues this left Rebecca to fully assist me with my CrossCountry duties as managing director of Falcon in pathway when I asked Rebecca how much she knew about our operations she surprised me by revealing that greybear security her employer was a subsidiary of global Maritime Protection Services owned by the sues shipping group I should have expected that connection the rest of q1 2013 was steady with monthly Financial improvements if we maintained this pace we'd be a $10 million Company by year end though we were mostly restoring Pathway to where it had been before Moore's mismanagement despite this progress our only notable Victory against Moore was his failed embargo on Richardson's Garden we knew we needed to escalate things to the next level an opportunity soon presented itself West over Foods Inc Phil Barnes explained at our q1 Falcon meeting makes Marvel bread and happy snack cakes management has drained it financially while promising to maintain the pension fund this month they reneged on the pension violating the Union contract if the union refuses contract changes the company will go under but they'll keep the pension if they accept the company fails anyway and they lose everything bankruptcy seems inevitable Lucy said Phil confirmed the union had voted down the new contract two bids are in $680 million for happy likely a done deal more Equity Partners is the sole bidder for Marvel at $30 million they won't like that Dennis noted they don't Phil agreed which is why they approached us they like what we're doing with pathway if we take over Marvel they'll make compensation concessions to keep the pension fund intact bidding against more takes things up a notch I said do we know what it would take to outbid him I an asked Phil replied Moore's bid was a take it or leave it offer he's publicly claimed Marvel is a loser and he's the only one who can fix it so just bidding makes him look bad I reasoned and forces him to reconsider his offer but could we save another company Falcon Associates buys Marvel bread from West over Foods April 9th 2013 Food business news Falcon Associates has purchased Marvel Bread Company assets for $ 43. 8 five million the acquisition includes four Brands five baking plants and 11 Depot expanding Pathways distribution into the Pacific Northwest and Midwest a week later we flew to Portland for Marvel's first all employee meeting gra air security handled our travel and we were greeted by security at the airport the meetings were more straightforward than pathway's debut as the unions had initiated our involvement Marvel's workers wanted to meet us face to face to hear our plans half of Marvel's 430 employees attended in person while the rest joined by a video conference we discussed our success with pathway and assured them that Marvel products would be distributed alongside Pathways the Turning Point came when I mentioned growing up in Oregon eating Marvel's Pioneer Trail honey butter bread I vowed to make sure it didn't disappear which seemed to reassure them afterward we toured the Portland Anchorage Spokane and Billings plants Marty returned to Kelton while the rest of us flew back to Portland where we were picked up for the drive to Rose Valley Lucy and Dennis worked remotely from Rose Valley traveling to Illinois as needed Meanwhile my extended absence made me realize that spending time in Rose Valley was difficult every visit pulled me back into painful memories of the past I hoped that bringing work and Rebecca along would help me focus on the present Rebecca my executive assistant insisted on staying in my apartment's second bedroom over the restaurant mom didn't seem to mind she might have even thought having someone new around was a good thing after Kathy one night I woke up to find Rebecca next to me she explained that I had been shouting in my sleep calling out for Lana and Cathy and she had stayed to comfort me she thought I might have PTSD and urge me to talk to someone later as we reviewed notes from the Marvel meetings Rebecca asked how I managed to inspire hope in others while struggling with my own pain I had no answer the rest of my visit to Rose Valley felt uncomfortable haunted by bad memories at every turn by the time I left it was clear that Rose Valley was no longer my home Rebecca was right I needed help when you're the managing director of a company in the spotlight and featured on Fortune seeking help for potential PTSD isn't as simple as calling your Insurance's provider list even though Falcon's success was a team effort I was the public face and any perception of instability could damage our business and damage our fight against Daniel Moore naturally Eman had a connection after some calls I saw a doctor in Chicago the diagnosis confirmed Rebecca's suspicion I had PTSD mainly from unresolved grief over my daughter and at my ex-wife with my worst episodes triggered by visits to Rose Valley but my PTSD wasn't the only issue I was also dealing with chronic stress from work responsibility for hundreds of jobs and the constant presence of bodyguards on top of that I showed signs of depression I left the doctor with medication and a Stress Management plan returning for bi-weekly therapy we didn't have to save another company to meet sophy's condition about avoiding damage to innocence we just had to save jobs Marvel turned out to be easier to rebuild than pathway as westover's Equity Group had ignored it while gutting happy Brands Marvel's Regional bread brands were growing especially in the Pacific Northwest the depot we acquired helped expand Pathways distribution which was already Riding High from the Nationwide attention we got after acquiring pathway and giving out Christmas bonuses the Grassroots support boosted demand and we had to add shifts to meet orders for the holidays making it the biggest Christmas in Pathways history the concessions Marvel's Union made allowed us to equalize pay across all Falcon divisions and once that was done the union concessions were lifted the unions representing Marvel Westover and pathway employees eventually merged and negotiated as one making it easier for us to handle contracts Nationwide Marvel bread combined with therapy was good for me by the end of December my blood pressure had dropped 20% and I had learned to redirect my dreams to happier memories of my daughter we all celebrated a happy new year in 2014 well maybe not everyone our first quarterly meeting of 2014 went smoothly sales were up plants were performing well and employee morale was strong then we got the results from our secret data project when Falcon acquired pathway We inherited not just its physical assets but its intellectual property including old data Dennis's team had been working for years to recover deleted data from the servers and backups some of which Moore's people had carelessly Left Behind when they wiped the hard drives it turns out Moore had used Pathways finances to commit fraud shifting money around to make the company looked profitable we found emails account numbers for offshore accounts and Records linking him to schemes at other companies like Wilson energy and pulson Mining even more shocking Dennis uncovered records showing that Moore orchestrated the financial distress of Rose Valley homeowners to force a buyout of Maple Grove Mills his group had issued toxic mortgages to resid pushing more than 60% of the town's homeowners underwater effectively ruining the lives of many in order to seize control of the company we handed all the data over to the Consumer Financial Protection Bureau the FTC the SEC the IRS and other agencies on April 12th 2014 charges were brought against Daniel Moore and more Equity partners for fraud tax evasion and running a $3. 2 billion scam more had falsified re rues to secure loans and used fraudulent money to pay off earlier lenders the IRS uncovered offshore accounts and layers of companies used to hide the stolen money the SEC sought the return of Moore's Otten gains while the doj froze his assets a court hearing was scheduled for December and the IRS requested the asset freeze continue the trials lasted over a year during which Mo repeatedly claimed the evidence against him was faked Dennis and Lucy testified about recovering Pathways data and Moore's defense couldn't explain how fake data included real offshore bank accounts in places like the Bahamas and Luxembourg holding over a billion dollar that were never reported to the IRS on June 24th 2015 Moore was sentenced to 60 years in prison for fraud and tax evasion he had founded more Equity Partners in 1985 which owned five companies at its peak Moore was convicted of falsifying revenues to secure loans using fraudulently obtained money to pay off earlier debt and hiding the proceeds to evade taxes He was ordered to pay $3.
2 billion in restitution in addition to more seven partners and over a dozen employees were also indicted they either pled guilty or were convicted after testifying against more however we were disappointed when the doj classified Moore's carnivory mortgage scheme in Rose Valley as a civil violation with no criminal charges the government seized $2. 8 billion in assets including offshore accounts properties and personal items Falcon Associates received a whistleblower award from the IRS for 30% of the recovered amount at an estimated $960 million it would be the largest award in history once the assets were fully liquidated our plan to take down Daniel Moore by Reviving The businesses he ruined would result in nearly $600 million in profit my ex-wife who had worked in Maple Grove Mills finance department under Moore was not charged she kept $500,000 a $1.
