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By Fos, the Rat

Actually, I am Priscilla Rhodent, the DA in last week's column. Fos asked me to take over for this week and describe the background research that had been completed before this case went to trial.

Upon receiving the case, we started our investigation. My team quickly honed in on Reid McGregor. Performing interrogatories on key people throughout Western Paper, not just at headquarters in Kansas City. We discovered that Mr. McGregor, a thirty-five-year employee of Western was known to be very focused on the bottom line. In fact, one might say his focus was to protect or grow the bottom line to the abandonment of nearly everything else, including legalities and ethics. Oh, there is one other thing he was focused on: protecting himself.

McGregor quickly blamed the failure of the abandon digester on Kerry Dean, the highly successful manager of the Osage mill, for Dean had been at Harrington when the digester was taken out of service.

Here is a portion of Kerry Dean's interrogatory:

Priscilla Rhodent: "Mr. Dean, I have read the Osage Mill. It seems as though you had quite a free hand in dealing with depreciated assets there. Yet, we have this situation at Harrington, which, while on your watch, this continuous digester was abandon in place."

Kerry Dean: "Yes, that is correct."

Rhodent: "Can you explain the change in behavior when you went to Osage?"

Dean: "Well, I was about to leave Western when I was given the opportunity at Osage."

Rhodent: "Why was that?"

Dean: "Mr. McGregor skirted legalities, ethics and standards. For instance, when we did the new digester project, I had funds in the appropriation to take the old one out. He made me remove those funds."

Rhodent: "So you went against your own professional judgement to comply with McGregor's wishes, even while knowing he was wrong?"

Dean: "You are correct."

Rhodent: "Do you recognize this admission could make you complicit in the ultimate outcome of this case?"

Dean: "Yes, I do now."

Rhodent: "I would like to pause this interrogatory and take it up again in a couple of days. Are you OK with that?"

Dean: "Sure."

I, Priscilla Rhodent, convened my team: "I think we can get McGregor on OSHA, EPA and SEC charges, possibly lending fraud."

Various team members had questions for which I answered as follows: "Well, we have discovered that liquid and energy sources had not been disconnected from the digester. That's one. Two, there was no provision to protect the soil from any leakage from the digester. There is a lot more related to the abandonment of the digester, but moving on to three, by avoiding the costs of removing the digester, the income produced by the mill was a lie--over inflated by avoiding these costs. And then if there was falsification of any documents related to loans related to the digester project."

One person asked, "Isn't Kerry Dean just as liable?"

"Yes, but I don't think he had a choice. In fact, I intend to offer him immunity if he will testify against McGregor. Dean proved he wanted to operate differently by his actions at Osage."

We discussed the matters a bit more and my team agreed with my approach.

I got back together with Mr. Dean.

Rhodent: "Mr. Dean, nice to see you again. Ready for a few more questions?"

Dean: "Sure."

Rhodent: "The last time we were together, you said you were about to leave Western when you were offered the position at Osage. Why did you stay?"

Dean: "I was unequivocally given permission to operate as I chose."

Rhodent: "Why do you think that was acceptable to headquarters?"

Dean: "Headquarters was desperate. They could not continue to operate Osage as they had been, and it was on the books for way too much to shut it down."

Rhodent: "How did you know this?"

Dean: "I can read an SEC 10-k and I can read between the lines in a 10-k."

Rhodent: "Mr. Dean, I am formally offering you immunity in this case if you will swear to honestly and truthfully testify against Mr. McGregor in this matter."

Dean (noticeably relieved): "Absolutely, where do I sign?"

Be safe and we will talk next week--Fos.

Podcast of this column available here.

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