Page 76 of Bubbles at the Beach House Hotel

She and I sat in chairs in front of Will’s desk.

“We need to know what exactly is happening,” said Rhonda. “You said something about insider trading.”

Will cleared his throat. “To put it simply, insider trading involves trading in a public company's stock or other securities by someone with non-public, material information about the company. Insider transactions are legal if the insider makes a trade and reports it to the Securities and Exchange Commission, but insider trading is illegal when the material information is still non-public. That’s where Arthur went wrong.”

“So, he bought stock in a company before it became public?” I asked. “It seems so simple. Why would he do it?”

“To make money, of course. But I think he wanted to show me up. He’s been trying to get Reggie to leave the company, telling him he’d make more money working with his group out of New York where the big money is.”

“But there are plenty of millionaires right here in Florida,” I said.

“Including your wife,” said Rhonda. “I trust you with my money because I know you and respect how honest and hardworking you are, just like every other client of yours.”

“You are every bit as successful as Arthur,” I said, furious that Will was being blamed for any part of this. "How can you prove you didn’t report the situation?”

“That’s all part of the investigation. Arthur was brought in for questioning. I suspect the SEC has already built a case against him and the others involved.”

Rhonda gazed at Will with such love that I looked away. “Will, darling, is this what has been bothering you these past few months? You’ve been so worried, so upset about work.”

Will looked down at his desk and lifted his face, looking miserable. “Arthur and I have been competing—no question about it. But when I told Reggie that he couldn’t mention this opportunity to any client of ours, he got angry and told me I had to stop competing with his father. Things have been tense between us since then.”

“Shouldn’t Reggie be grateful to you now?” asked Rhonda.

“Like I said, he thinks I may have let it slip about it being a bad deal. The trade would’ve been legal if made after the forthcoming sale of the company was made public. It’s as simple as that.”

“There must be a reason Arthur went ahead with it,” I said. “He’s an honest man.”

“True, but he got greedy,” said Will. “His friend at the company gave Arthur secret information about the forthcoming sale of it and promised it would be made public on a certain date. But the so-called friend didn’t follow through. Arthur bought enough shares to indicate obvious knowledge beforehand.”

“What do you think will happen to him?” Rhonda said. “No wonder Angela and Reggie are so upset.”

“That will depend on the case. Perhaps a fine and some jail time. Perhaps having his license taken away. I can’t say,” said Will. “He’s wealthy enough not to worry about survival.”

“You and I will have to talk to each other about this on our own. And we’re both going to have to speak to Reggie and Angela,” said Rhonda. There was a flash of anger in her voice, and I understood it. This might not have happened if everyone had simply talked to one another about it.

Rhonda continued to address Will. “You know how worried I’ve been about you and your health. You could’ve had a heart attack and died if you hadn’t collapsed. Nothing and nobody are worth losing you.”

Will looked like a schoolboy who’d just been scolded by the principal.

I stood. “Look, I’m going to leave you two and go back to the hotel. Rhonda, take as much time with your family as you need.”

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