Part I and Part II provide the background of a unique bank fraud investigation. Last time, Sandman, influenced by his interfering inamorata, could not grasp that having cheated a bank once, he was no longer in a position to negotiate tough deals to make matters right.
No one had any notion of the unreal turn the case would take.
Off-Court Serve
A sizable entourage gathered
in North Carolina: the vice president, a local consultant, a legal assistant,
two attorneys, a company officer, Chase, and a brace of company people who
stayed in the background.
I hadn’t previously
met the bank’s attorney, a pretty, dark-haired girl with beauty, brains, and a
beguiling sense of humor. Diane and I hit it off immediately.
The vice president
introduced the other attorney, a local Greensboro man who’d made good. He’d graduated
Harvard summa cum laude, then returned home to practice. His Clark Kent glasses
lent a vague, intellectual uncertainty that would fool most people. Women zeroed
in on tall, dark, and handsome, although he’d probably suffer an academic stoop
in later life. Chase used the term ‘Esquire’, which became the man’s sobriquet for
the rest of the trip.
The attorneys laid
out a simple plan. They intended to search Sandman’s residence and, if
necessary, his workplace for the source code. Since Sandman worked nights and
slept days, they hoped to catch him napping– literally.
Esquire’s clerk had
filed a brief and affidavits, including a couple from me, in support of search
warrants for Sandman’s residence and place of work. They drafted carefully the motion
to search the workplace, Carolina Steel. They weren’t Sandman’s employer, they
merely let Sandman use their computers for development in exchange for his
software and services. Two of their employees, Harry Church and Charley Barley,
collaborated with Sandman.
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Guilford County courthouse |
An out-of-state
entity requesting to search a local company might give a judge pause, but banks
enjoyed certain federal privileges and protections. Trailing after the
attorneys, we convened at the Guilford County courthouse to obtain a judge’s
signatures on the court orders and warrant.
And then we waited.
And waited. The courthouse’s architecture would have given Howard Roark apoplexy,
a dull cell block unrelieved by a Greco-Roman temple façade. Its uncommonly
hard benches had been cunningly copied from a Spanish Inquisition design. After
painful hours of aching back and backside, I’d have confessed to assassinating Warren
G Harding.
Once we discovered
judges had adjourned for lunch, we followed suit. Esquire stayed behind in case
a magistrate returned early. We need not have worried. The clock read well
after lunch hour when Esquire came dashing back.
Why Southern Deputies Have Stereotypes
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Sheriff J.W. Pepper |
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Sheriff B.T. Justus |
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our Deputy I.B. Dimbulb |
The next step entailed
the sheriff’s office executing the search warrant. While we waited, the
Sheriff’s Department assigned a deputy to us. Jaws dropped. I wasn’t sure about
the others, but I gulped in dismay.
Sheriffs J.W. Pepper
and Buford T. Justice– movie fans might recognize them as the fat, stogie-chomping
clichés portrayed by actors George Clifton and Jackie Gleason, respectively. Our
guy looked like their bigger, nastier, meaner brother, the Southern deputy the
South has done its best to stamp out.
Mean little eyes
peeked out from the fat pads of his cheeks. His hair was losing the follicle
war fought on an oily battlefield. He chewed a fat cigar mashed out so often, its
end looked exploded. This good ol’ boy had worked hard developing a beer gut,
the kegger kind that gave meaning to barrel-chested.
Chase and I’d been chatting
up the pretty attorney between us, idly flirting to keep in practice. The
deputy looked around at the gathered crew, hitched up his gunbelt and seized
upon her to impress.
“Lil lady, whuz this
here all about?”
Diane explained we
were waiting for a warrant.
“Whut, you’re a
legal lady? Purty lil theng lack you? Listen here, I’ll check on it, pull a few
strings.”
He wandered off,
came back, and glowered at Chase and me still sitting on either side of her. He
plumped down next to the law clerk, facing us, legs apart to accommodate the
sag of his kilderkin belly. Guilford County law enforcement shirts were made
out of sturdy twill, not flimsy civilian fabric that might rupture at the next
Big Mac.
“We wait a bit. At
least this here’s simpler than last week. Yes sir. We wuz down in n-town,
middle of the night, had my nightstick out whaling away, an’ you wun’t believe
how shy them dark ones gets facing real lawnforcement.”
A man with a gun, a
prejudice, and a loose screw had been turned loose on the streets of
Greensboro.
The rest of us sat
aghast. The local paralegal looked as if he wanted to shrink out of sight. Our
VP, lounging against the wall, grimaced in disgust and departed the scene of
the crime.
Next to me, attorney
Diane tried to reassure me, the Yankee in the group. She whispered, “Believe
me, this is not what Southerners are all about. This moron is… is…”
“An abomination,”
muttered Chase. “Pardon the expression, but an utter asshole.”
His eye-watering cigar
breath wilted most of us. I couldn’t decide if the deputy was oblivious to our
reactions or encouraged by them. Had some of us managed to conjure obsequious
interest, the course of events might have changed.
He continued. “Yep,
now you takes a good oak nightstick, it makes a real good impression. It’s a
grand persuader and if someones gets a bit messed up, you don’ gotta file no
reports lack if you draw down. Nows this one darkie…” He didn’t use the word
darkie.
I worked and
traveled throughout the South, but I never encountered anything like this. More
than sickening, this guy frightened us.
Once upon a time, the
don’t-tread-on-me temper I inherited from my mother would override the quiet
reason of my dad’s DNA contribution. Chase glanced at me in alarm. He’d seen me erupt once before. He leaned over and rested a calming hand on my wrist.
“Leigh, don’t, man. Don’t let anger cloud your vision. We need
this guy on our side; it’s too important.”
Chase was right. We
didn’t need to antagonize the repellant lawman assigned to us. I stalked toward
the restrooms.
Hands on the marble
counter, I leaned forward gathering myself. The vice president stepped out of a
stall. He washed his hands and said, “Piece of work, isn’t he.”
“That bastard gets
his jollies clubbing kids. Makes me sick.”
“That’s why I left
before I told him off. We can’t change him now.” He clapped a hand on my
shoulder. “C’mon, we endure.”
And we did for two more
hours. None of us knew how much more of the deputy we could take before one of
us turned homicidal.
Chase and the VP grew
increasingly agitated the warrant was taking so much time. As shadows grew
long, legal delays put at risk the plan to surprise Sandman asleep. Now past mid-afternoon,
the time neared for his inner vampire to stir.
Esquire appeared and
waved the vice president over. Minutes later they handed the deputy the court
order.
The deputy squinted at the documents.
“Whut’s this here software?”
Chase said, “Computer
programs, apps. Software runs the computer.”
“Whut’s it look like?”
“It could be
listings, discs, hard drives, or even tape.”
“Yuh, but which?”
“It could be any of
the above: print-outs, discs, cartridges, or tape.”
“Yuh, I said which?”
Chase turned helplessly to me.
I said, “We don’t
know, sir. If this order was for music, it could be on a cassette, a CD, a
vinyl record, or even sheet music, see? Same idea; we don’t know if it’s on a
hard drive, CD, or printed sheets. It could be any or all.”
“Listen up. If you
don’ know whut you’re lookin’ fur, we jez ain’t goin’.”
Attorney Diane
stepped forward. Beguilingly, she said, “This is a court order signed by a
judge; you have the warrant. Leigh here can recognize the software.” She rested
her hand on his forearm. “We need an experienced officer like you to execute
the warrant.”
“Thet judge pulls
bogus orders outta his ass all the time. It don’t spell out what it is, I don’t
execute it.”
Esquire hadn’t been
regaled with the deputy’s adventures like we had, but the antipathy between the
two men had blossomed, instant and intense. He said, “Come, Deputy, explain
that to the judge.”
“Folks say you got
fancy-ass Harvard law school, but that don’t cut no ice. I don’t tote for you.
I works for the Sheriff.”
“The judge hears
this, you might not work for anyone.”
The deputy stared at
Esquire. He unhurriedly took the cigar out of his mouth, pulled out a paper
pouch of tobacco, tucked in a chaw, and reinserted the cigar. He gave the
distinct impression he’d like to address Esquire with the nightstick. Finally,
he said, “Let’s git.” He turned and stomped away.
The Raid
The deputy’s heavily
muscled Dodge led our convoy of four cars. The paralegals and staff came along as
witnesses. We pulled in front of a modest house in a suburban neighborhood.
Chase stayed back to
avoid antagonizing Sandman. I was kept waiting in the last car, I was told, for
the premises to be secured.
Four got out. Both
lawyers and the vice president followed the deputy up the walkway. The deputy
banged on the door.
A spikey-haired, sleepy-eyed
Sandman came to the entry, tying the belt of his bathrobe.
“We lookin’ for a Daniel Sandman. You happen to be him?”
“Yes.”
“We got a warrant
for software. You got any this here software?”
“No, no sir, I don’t.”
“None at all?”
“No sir.”
“Well, then, a good day to you.”
“But… but…” said Esquire. “We came to search.”
“No, we ain’t gonna do no search.”
“But we have a
warrant, a search warrant, as directed by a judge.”
“You heard the boy:
He ain’t got none of this software. His word’s good enough for me.”
The vice president
spoke up. “He has the software and we have a court order.”
The deputy spoke in
mean, measured words. “You heard the boy. He said he ain’t got software. Now,
you wantin’ to mess with me?”
Thwarted, the lawyers
trudged back to the cars. Revving the Dodge’s big engine, the deputy whipped
the powerful car down the street and out of sight.
“We still have the
court order for his workplace,” said the vice president.
“A lot of good that
will do us now,” said Esquire. “But let’s try.”
Nervy Steel
He directed us to Carolina
Steel’s headquarters. As if anticipated, we were swept straight to the top
floor where two company officers and their lawyers met us. Clearly, they knew we
were coming.
The company attorneys
blathered and blathered, made phone calls and blathered more. They claimed they
were waiting for senior counsel. Outside the conference room, security gathered.
One of the
executives said, “Our boys downstairs assure us they don’t have any of this
software mentioned in the court order.”
Chase muttered in my
ear. “Least not anymore.”
“That’s why we brought
an expert and a court order to search,” said our vice president.
“Now, now. Normally in
Carolina, police or deputies conduct searches. You don’t do it differently in Old
Vir-gin-I-A, do you? All y’all can’t expect us just to let you poke around,
can you, especially since our boys assure everyone nothing’s to be found? Certainly
you don’t mean to question our veracity or abuse our hospitality?”
A legal argument
ensued, but it grew clear that without police presence, we wouldn’t be allowed beyond
the boardroom.
Security personnel
moved in to escort us to the parking lot. The burly males looked menacing
enough, but the much scarier short female guard appeared itching to shoot one
of us in the kneecap.
Thwarted yet again,
we adjourned for a post-mortem. It felt like our own. What should have been a
simple mission, abjectly nosedived.
Days later, talking
to Sandman, he told me what happened behind the scenes.
“Man, the deputy gave me a scare. As
soon as I closed the door, I lit the fireplace. Middle of summer and I get a
blaze roaring. I’d stacked listings all over the house, one of them on an end table
next to the door, not more than two, three feet from where the deputy stood.
“I gathered them up, feeding them piece by piece to the fire, burning the evidence. I also had a couple of mag tapes around. You wouldn’t believe how Mylar stinks when it burns. Gives off this black ash. The stench still reeks in my nostrils. That left a disc cartridge. I figured if worse came to worst, it might anciently sorta get dropped.
“Simultaneously, I called the computer room, and told Charley and Harry the situation. The entire time you were upstairs with the lawyers stalling you, they were downstairs erasing everything they could off of disc and tape, shredding so many listings they fried the shredder and had to roll in another.
“Every ten minutes the CIO would call in. ‘What’s left? What’s left?’ By the time our lawyers let you go, we’d hidden the key pieces and destroyed the rest.
“Harry, Charley, and me… we worried one or all of would be let go, but Carolina Steel’s attorneys nixed that, saying terminations could be used as prima facie evidence we’d done something wrong like destroying the programs specified in the warrant.
“Man, I shouldn’t gloat, but our insane clown deputy beat your Harvard summa cum laude lawyer. Lot of good he did y’all.”
Post Mortem
I accompanied the bank
people back to Virginia. It wasn’t a happy trip. The vice president needed to
prepare an explanation for the stockholders. The rest of us and Data Corp’s
general manager met at the Arbor, a favorite restaurant for dinner, overeating,
and imbibing. Comfort food and drink.
We agreed not to
talk about the debacle while we ate, but we couldn’t bear the tension. We
cursed the deputy, Sandman, Carolina Steel, and software in general. Finally we
pushed fried chicken aside and sat back.
“Well,” said the bank’s
attorney, dabbing lipstick where it had worn thin. “That was a right fiasco.”
“And other words
that begin with Æ’,” Chase said.
Diane put her
lipstick away. “What I don’t see is an option anymore.”
“That was it, the
end of the line.”
“We’ve got to
consider our exposure, to customers, to shareholders, to ourselves. We face
serious liability if customers discover we don’t possess the source code.”
“Hmm,” I said.
“Damn,” said Chase,
far down in his beer. “I have clients who want to buy it if we can add features
and support for new hardware.”
“There is one
option,” I said, but no one was listening.
“Oh Lord,” said the
attorney. “I wonder if we’ve stepped on any state or federal banking
regulations. We could be accused of fraud here.”
“Not necessarily,” I
said.
“Even worse exposure,”
she groaned, “most of our sales have been out of state.”
I said. “Folks, listen
a moment. I can decrypt the code.”
Chase peered at me
speculatively, the lawyer skeptically, and Data Corp’s general manager like I
was crazy.
Chase said, “Danny
told us over the phone it’s too complex even for him. It can’t be done.”
“When do you stop
believing the guy who screwed you and start listening to the guy hired to save
your butts?”
For the first time
in weeks, Chase looked more relieved than morose. He gulped like a man given
a Heimlich maneuver.
The general manager
reached across for the last piece of chicken. “I’m pretty certain we can’t
afford for Leigh to write us an entirely new program.”
Diane’s paralegal
had followed both the legal and technical discussions. She had drafted the
original purchase contract with Sandman.
“Leigh, what makes
you think you can do this?” she asked. “Not only would you have to figure out
the program in the ordinary course of events, but a brilliant and devious guy
has done his best to see it can’t be done.”
“If anyone can do
it, Leigh can,” Chase said with perhaps more conviction than he felt. “If you’d
heard the two of them on the phone, you’d know he’s got Sandman on the run.
I’ve seen his work, even more brilliant than Sandman.”
“Are we talking
battle of the brains or war of the egos?” said the GM. “He may be quite the
code-slinger, but experts say code-smashing can’t be done.”
I said, “The difficult
part was figuring out it was encrypted. The second hardest has been deducing
how. I’ve been working that out at home while I’ve been waiting.”
“You’re plugged into
NSA or CIA or something?” said Diane’s paralegal.
“No, it’s merely a
puzzle.” A famous quote came to mind. “A riddle wrapped in a mystery inside an
enigma.” They stared at me. The Churchill reference fell flat. I
couldn’t blame them; we’d undergone a bad day.
“What’s our
guarantee?” the paralegal asked. “We already took the word of one guy. It’s not
up to me, but I wouldn’t throw good money after bad.”
I said, “Sandman
created programs to strip and encrypt the program. I have to design programs to
decrypt and restore the code.”
Diane spoke up. “So
why are you saying this isn’t the most difficult thing in the world?”
“Sandman didn’t want
to trigger alarms, so no fancy NSA 128-bit encryption. Instead, he scaled up
cypher obfuscation to support the legend of a hard-to-comprehend way of doing
things. He believed he garbled the code too much to permit serious study. He’s
wrong, but it’ll take detective work.”
“Even so,” said Chase,
“you won’t get the documentation back, the comments.”
“True, but I’ve been
living with this program for months. Once decoded, the label names give clues;
that’s why Sandman encrypted them. As for the logic, in a circular way I can
learn the code by having to document it and I can document the code by having
to learn it. Does that makes sense? I’ll attain a deeper knowledge than if I
hadn’t had to do the extra work.”
Chase raised his
glass. “I bet on Leigh.”
The attorney– she of
little confidence– shook her head. “He’s cute but…”
Chase picked up the
check and said to me, “Let’s get sleep and start tomorrow.”
Sandman had blown his chance to negotiate a deal that would have benefited everybody. The bank boxed him in legally and I was closing in on breaking his unbreakable code. He still had one more wrong move to make as we wrap up in Part IV.