Page 37 of Partner Pursuit
She smiled perfunctorily at some assistants she passed. She had to think positively. It was helpful to have Colette on the team. She shifted her binders and notepad to her other arm. Her goal for this meeting was to explain the case and her proposed strategy to Colette. And show Colette that she was firmly in control and not to be messedwith.
Hunter’s assistant was not at her desk, so she walked to the doorway. Colette was already there—in acream-coloredsilk suit that radiated sophistication. Audrey had dressed up for the meeting, but she wasn’t feeling the power of her pearls and black suit. Both heads turned as she knocked gently on the open door, and Hunter waved her in. She took her usual seat. They exchanged preliminaries about the weekend, with Colette saying she’d worked, volunteering nothing personal. Today, Colette was wearing glasses, as if she was channelingLoisLane.
Hunter told a funny story about his kids playing on the beach. Normally, Audrey would have joked about her last bad date, giving a brief funny synopsis, but she didn’t feel comfortable after her last meeting with Hunter, so she just said, “Oh you know, hung out with friends and worked.” Hunter lookedquizzical.
“Well, Audrey, do you want to bring Colette up to speed on the case? I’ve sent her the complaints and some preliminary documents,” Hunter said. His assistant entered and set down some glassesof water.
“Of course. Colette, first of all, I’m glad you’ve joined our team, and I look forward to working with you,” she said. There, she was starting this on a positive note. She handed Colette the binder she’d put together forher.
Colette gave her a tight, polite smile inresponse.
“We represent Hen Bank and its three brokers who are being sued for unauthorizedtrading.”
Colette flipped the binder open tothattab.
“We’re still in the midst of discovery,” Audrey said. “John Rothman’s case is the most critical for success from the bank’s perspective because he’s one of theirlong-timestars and heads its wealth management group.” And he was agoodguy.
“Have they said that?” Colette asked sharply.
“Yes,” Hunter said. “Our firm has also worked with John for years, and he’s solid—a straight arrow. These allegations are quite distressing and a real shock to his family and the firm. You may have seen some of the press.”
“Especially at this time—his wife is undergoing chemotherapy, and so they just want the stress of the case to be mitigated,” Audreysaid.
“They want to settle?” Colette asked.
“No, they want to clear his name, but as soon as possible and with the least amount of disruption. But the case is—let me give you background first.” Audrey relaxed. She knew this case cold. “John has a French client, Pierre, from a very wealthy family. John brought Pierre in as a client to Hen Bank years ago when he started. They are family friends. So, it’s atwenty-yearrelationship with no prior issues—as far as we know. About six months ago, Pierre calls John on his personal cellphone while John is at the hospital picking up his wife from her first round of chemo. Pierre wants to invest in this Brazilian company. John said he hasn’t researched it, hasn’t heard of it, wouldn’t advise it. Pierre is insistent that he wants to buy it. John tells Pierre to call Mike, the analyst, and ask him to place the trade because he’s at the hospital. Pierre is adamant that John has to make the trade—he only trusts John.” Audrey paused to let Colette catch up as she was writing notes.
“This is from a recording?” Colette asked.
“No, unfortunately. John’s memory. Because Pierre called John on his personal cellphone, no recording. John’s wife overheard part of the conversation, but he doesn’t want her in the case. And she’s the wife—so a jury will probably consider her biased.” Audrey took a sip of water; her throat felt dry. “But the telephone records show that John received a call from Pierre that day, and the hospital records show that John was at the hospital at thattime.”
Colette nodded and made some more notes.
Audrey leaned forward. “Pierre says that he wants John to make the trade or he’ll use his other broker. What kind of client service is this? Blah, blah, blah. John agrees to make the trade.”
Colette shook her head. “Shouldn’t have donethat.”
“But he does. He gets on his laptop and manages to buy the amount in a brief dip in the stock. John then calls Mike immediately after and explains Pierre’s request to him. So, we have Mike’s testimony supporting John, but again, John’s his boss. That conversation should be recorded, so we’re looking for that recording. Then, John asks Mike to do some research on the company. That research comes back mixed. Rumors are swirling that the company found some huge mining spot, but it can’t be confirmed. John sends the brief research analysis to Pierre. Pierre is using that document now to say that John suggested the stock tohim.”
Colette raised hereyebrows.
“John gets back to the office and sends an email asking Pierre to confirm the trade in writing,” Audrey said. “No response. He calls. Voicemail. We do have that message recording. And that’s in our favor because the stock is still up at that point. Pierre has ten days to send the written confirmation. But the stock goes south eight days later—and then Pierre writes that he didn’t authorize the trade and wants the firm to reimbursehim.”
Audrey explained their first argument that Pierre instigated and verbally authorized the trade, per John’s recounting of the facts. Alternatively, they would argue that this trade was authorized because Pierre signed a written authorization allowing John the discretion to trade on Pierre’s behalf. “But we haven’t found that written approval yet. I did find documents indicating that a higher level of review is being applied because it is marked as a discretionary trading account. That leads us to hope a written authorization exists.” Audrey finished describing their additionalarguments.
Colette was looking pensive.
Not the best case for making partner, is it?
“Hmmm.” Colette put down her pen. “Did you see that recent verbal authorization case? It was in New Jersey.”
“No, what did it hold?” Audrey asked.
“It torpedoes your first argument. The court held that there is no discretionary authority without prior written approval,” Colettesaid.
Audrey was shocked. Her automatic searches should have alerted her of any decisions on unauthorized trading.
“I’m surprised you didn’t see it.” Colette looked slylyat Audrey.
