Chapter 7 - FRONTLINE GROWTH PARTNERS
-7
The financial audit finished six weeks later.
Frontline Growth Partners had no real office.
No website.
No employees.
No documented pipeline.
Yet Peterson Tech had paid it $92,430.
Of fourteen referral claims:
Two were legitimate enough.
Dad had introduced a former colleague who later became customer.
He had also flagged a manufacturing merger that led to meeting.
Those fees totaled $11,000.
The remaining $81,430 lacked credible referral evidence.
In eight cases, internal employees had already documented customer relationships before Frontline claimed involvement.
Three were Elliot’s or Sara’s accounts.
Two belonged to Jamal.
One belonged to a rep who had left company.
Derek had redirected credit.
Then Dad transferred $31,000 to Derek.
Descriptions:
Birthday gift.
Loan repayment.
Family expense.
No loan documents.
Derek also received $8,500 from Mark Densmore.
The investigators concluded likely scheme:
Derek used referral budget to route company money to Dad’s LLC.
Dad returned part.
Not necessarily every payment prearranged.
But enough.
Then Dad’s lawyer arranged meeting with company counsel.
Dad cooperated.
He admitted he knew some referrals were “thin.”
That phrase.
He thought Derek had discretion.
He did not understand employee commissions affected.
He did understand he had not earned full amounts.
Why take?
“Derek said Virgil would rather family benefit than random referral firms.”
My fake preference again.
Did Dad ask me?
No.
Why?
“He said you didn't want details.”
Again Derek speaking for me.
But Dad chose not to verify because answer pleasant.
Then Dad admitted he had given Derek money back because Derek said bonus timing was bad.
Did he believe kickback?
“No.”
Would a reasonable person question?
Probably.
His attorney negotiated restitution.
Dad agreed repay unsupported $68,000 after credit for legitimate introductions and taxes/other adjustments to be resolved.
He did not have cash.
He sold truck.
Withdrew savings.
Payment plan.
I did not pay.
That caused family uproar.
Mom said:
“Your father will wipe out retirement.”
“He took money.”
“He didn’t know.”
“He knew enough.”
Then Mom:
“Couldn’t company forgive?”
No.
Would board forgive nonfamily vendor?
No.
Same standards.
Then legal referral.
Because interstate payments, electronic records, company theft, maybe wire fraud.
Authorities reviewed Derek and Dad.
Dad’s cooperation and lesser intent mattered.
Derek central.
Mark Densmore also implicated but less.
He admitted receiving favorable accounts and sending Derek “thank-you” money; claimed not know referral fraud.
He was terminated.
Kyle Vetter received final warning/demotion after evidence showed he accepted accounts but no kickbacks and cooperated.
Sara, Jamal, Elliot had commission adjustments.
Company repaid.
Then stock impact? Peterson Tech privately held? Maybe venture-backed. Board notified investors. No huge public scandal.
I thought hiding would protect company.
Naomi reminded:
“Self-report and control remediation protect more.”
We did.
Then Dad’s restitution letter.
He called.
“I can’t believe you’re making me pay.”
“I’m not. Company is.”
“You are company.”
“No.”
He still struggled.
Then:
“If Mark Peterson’s father did this, would he pay?”
“Yes.”
Dad went silent.
That comparison finally.
Then he said:
“I thought your success was family success.”
“It can make me generous. It does not make company assets ours.”
He whispered:
“I know.”
Then criminal resolution came months later.
Dad was not charged with conspiracy due evidence of Derek misleading him and Dad’s cooperation, but he entered civil restitution agreement and amended tax returns, paid penalties. Could prosecutors decline.
Derek faced stronger.
Forgery of fake emails perhaps not itself criminal unless used for financial fraud/obstruction. But commission/referral scheme could support wire fraud charges. He eventually pleaded to two counts of wire fraud and one count related to falsified corporate records. Sentence maybe 20 months? Let's save chapter 11.
Then Dad asked to apologize to Lucas again.
I asked Lucas.
“Do you want Grandpa to come?”
Lucas thought.
“Will he say I’m weak?”
“No.”
“If he does?”
“We leave.”
Lucas nodded.
Grandpa came.
No gifts.
Good.
He sat across living room.
“Lucas, I’m sorry.”
Lucas held Bao.
Dad said:
“I saw Uncle Derek put your toys in the fire.”
Lucas’s eyes widened.
“I didn’t stop him.”
Truth.
“I told myself he was teaching you something.”
Then:
“He wasn’t. And I was wrong to say they were crutches.”
Lucas asked:
“Do you still think that?”
“No.”
“Why?”
Dad swallowed.
“Because I was confusing needing comfort with being weak.”
Then Lucas:
“Do you have comfort things?”
Dad looked surprised.
He thought.
“Your grandmother’s coffee.”
Lucas frowned.
“That’s not thing.”
“Okay. My old baseball glove.”
“Do you sleep with it?”
Dad laughed.
“No.”
Then Lucas said:
“I sleep with Bao.”
“That’s okay.”
A pause.
Then:
“Can I hug?”
Lucas thought.
“Yes.”
They hugged.
I cried.
Dad saw.
This time he did not look away or tell me to stop.
Then he said:
“I’m sorry to you too.”
I nodded.
“Keep proving.”
He understood.
Apology not restoration.
Relationship would grow by behavior.
Then Dad started therapy at sixty-eight.
He told me later:
“I hate it.”
“Good?”
“No.”
May you like
But he kept going.
That was strength too.
