Chapter 19 The Creep
Carmen got to the conference room the next morning at quarter to nine, and found Lauren deeply immersed in her laptop, with papers and print-outs all over the conference room table.
"Good morning. What's all this?"
"Go grab your coffee, and I'll tell you. I'm in the middle ..." her voice trailed off in concentration. Carmen got her coffee, and came back and sat down, letting Lauren work. Finally she looked up. "Stopping point," Lauren said. "I gotta piss and reload caffeine. Be right back." She skidded a sheaf of papers across the table to Carmen.
Carmen turned around the print-out so she could read it. It was half a dozen pages of some sort of elaborate spreadsheet of financial information. She looked at the top of the page and saw that the report came from a bank, and the bank accounts belong to Niki Stevens, "dba Party Hearty LLC." Paper-clipped to the back of the report were a couple of pages of legal boilerplate. Pursuant to LASD Warrant No. 12345 blah blah signed by Judge So-and-So, Court of Such-and-Such, County of Los Angeles, in re: the matter of Homicide Case 51039, etc. Letterhead, legal counsel Smith, Smith, and Smith on behalf of Bank of Blah Blah. Herewith please find the information requested in Warrant 12345, requested by Detective Sgt. Lauren Hancock blah blah. Signed and attested to this day Year of Our Lord, whenever wherever whatever.
Dba, doing business as. Niki's corporate shell. Carmen flipped back to the numbers. Nothing stood out on the first page, so she turned to the second one. Nothing. Third one. Three numbers in the third column, cash withdrawals, were circled in somebody's red marking pen, $9,950, $9,950, $9,950. In the next column the three dates of those transactions were underlined by the red pen. The dates were all on the same day of three consecutive months, October, November, December. Carmen turned the page. Two more amounts were circled, two more dates were underlined, $9,950, $9,950. January. February. Then came the month Jenny was murdered. Nothing. No more $9,950 cash withdrawals.
"Some of my financial warrants came back last night and this morning," Lauren said, entering and sitting down with her coffee.
"I see that," Carmen said.
"Interesting, huh?" Lauren said as Carmen studied the print-out.
"I don't know what it means," Carmen said.
"By itself, not much. But take a look at this." She slid another paper-clipped sheaf of papers across the conference table to Carmen.
Similar legal boilerplate. Pursuant to LASD Warrant No. 98765 blah blah signed by Judge So-and-So, Court of Such-and-Such, County of Los Angeles, in re: the matter of Homicide Case 51039, etc. Letterhead, legal counsel Jones, Jones, and Jones on behalf of So-and-So. Herewith please find the information request in Warrant 98765, requested by Detective Sgt. Lauren Hancock blah blah. Signed and attested to this day ... whenever wherever whatever. Different bank, though, First National Bank of blah blah, and different customer: Schecter, Jennifer D., dba StarryStarryNight Editorial Productions LLC.
Bottom of second page: $9,950, October. Third page: $9,950, November, December, January. Fourth page: $9,950, February. Cash withdrawals circled, dates underlined.
Carmen look at Lauren. "They each made the same cash withdrawals on the same days, of the same five months."
"Yep."
"Who does that?"
"Two people being blackmailed. Can't use your American Express card. Can't write personal or business checks. Blackmail tends to be a cash-only business. Small, unmarked bills, no sequence."
"Why that amount? And why monthly installment the payment plan?"
"Easy-peasey," Lauren said. "There's a federal bank law called the Bank Secrecy Act of 1970, also known as the Currency and Foreign Transactions Reporting Act, that requires reporting of any cash transactions of ten thousand dollars or more to the IRS. That's how they monitor drug dealers and the Mafia and so on. Big amounts of money. So if you keep the amount under ten grand there's no reporting and you don't trigger an alert. And if you are a patient, careful person but you want fifty or a hundred thousand, or whatever, you spread out the payments, easy to do if you know with certainty your victim isn't going to blow town. But there's a wrinkle."
"What's that?"
"The rule says a single payment of ten thousand, or two or more combined payments within a calendar year, going to the same person or company. So, the second time they make the withdrawal, it triggers the reporting. You have to fill out an IRS form called Form 8300, and so on."
"So in November they triggered it? And, let's see a calendar year. So they triggered it again in February."
"Right. But here's what I think. I don't think either Jenny or Niki gave a shit about alerting the IRS. For one thing, they wouldn't get caught at it for almost two years, at a minimum, and even then I don't think anyone at the IRS would tumble. A movie star? A writer? Nobody gives a damn about their withdrawals. And that would be, you know, a year and a half or two years after the blackmail payments were made. And anyhow, how are they going to report them to the IRS? 'We paid a blackmailer fifty or a hundred grand, please let us deduct it as a business expense. No, I don't think the payment had anything to do with the Bank Secrecy Act. I think they were hiding them from just about everybody else, specifically, people close to them."
"I don't follow."
"They each have accountants, for one thing, and people who file their taxes. And here's the other thing. If you look at the bank records, they made the withdrawals at different branches of their own banks. I figure they did that so no one branch manager or branch bank teller would remember the transactions several months in a row. So they were covering their tracks with the bank people they dealt with, going in and asking for a big pile of cash, and I'm guessing not-sequential numbering, small but mixed denominations, and so on. They weren't hiding from the IRS, they didn't want their accountants and financial advisers to spot the pattern. You see, each month you get a bank statement, right? Well, each month, their banks statements would only show one single withdrawal of ninety-nine fifty, instead of some lump sum of fifty grand or a hundred grand, or whatever. And both of them spent money like sailors on shore leave. So a single withdrawal once a month wouldn't stand out among all their other expenses. Shit, they could both say it was just walking-around money. One more thing."
"Yes?"
"Forget everything else, just focus on this one single thing. Why in the world would anyone do their banking from five different branches? Have you ever in your life used more than, say, one or two branches to do your banking? Maybe if you go out of town you stop in at the branch one time, maybe. But regularly? Hell, no. Now, that's one normal person. What are the odds of two women closely associated with each other making the same withdrawals on the same day from no less than ten branches? That's crazy, unless they were specifically instructed by someone to do this."
"So that's what we think? They each paid out--" Carmen stopped to do the math, but Lauren already had.
"Forty-nine, seven fifty. Times two, ninety-nine five. Almost a hundred grand. All cash. And you know what else is really smart?"
"What?"
"Just like most everybody else, Jenny and Niki tended to get paid in regular increments, usually monthly installments. Sure, they both had some really big income checks, too, from time to time, for contract signing agreements and things like that. Jenny got a flat half-million for what looks like that screenplay treatment Alice says Jenny stole. Niki got a big check when she signed up for
Lez Girls
. But mostly they get monthly royalty checks, Jenny for her books and Niki for her past movies, endorsements, and so on. Jenny got salary while she was directing, and Niki while shooting the movie. So every month, both of them have big paychecks coming in. That makes it easier for them to make a cash withdrawal, rather than have to pay out a much, much bigger one-time lump-sum blackmail payment."
"Didn't Jenny have other cash withdrawals?"