[Chapter 215: Looks Good on Paper]
Inside the villa, Gaskill smiled at Ian. "First of all, you can't use threats for this."
Ian had dirt on Madoff, but it wasn't convincing enough. Mainly because Ian wasn't a financial expert and struggled to find solid evidence, relying mostly on eavesdropping conversations.
But Madoff was cautious. He rarely let slip any real insider info -- unless Ian was willing to skip Los Angeles and stalk him daily on Wall Street, guarding his doorstep. The time investment was too high, so Ian wasn't interested.
That meant the limited dirt Ian had wouldn't do much damage to Madoff.
Gaskill said seriously, "This kind of thing has to be voluntary. You need to make Madoff believe that Redstone is a company with huge potential."
"Make him believe Redstone's future profits are strong?" Ian asked.
Gaskill shook his head repeatedly. "Since Madoff is a con man, he doesn't care if Redstone is actually making money. What he wants is that it looks like it's making a lot!"
Ian nodded. "Uh, I'm not used to that approach. I usually prefer companies that don't look profitable but secretly rake in big bucks."
Lena smiled softly -- that was classic Ian Carr for sure!
Gaskill laughed. "You know which kinds of companies look the best?"
"What?"
"Military contractors and pharmaceutical companies."
Gaskill's answer made Ian pause, then click.
Military and pharmaceutical industries were classic examples of high profits. A single gun could be worth many times its cost, and that's without considering the most outrageous examples -- like a $1,280 coffee mug or a $10,000 toilet seat, or millions spent on goats -- if it's related to the military, profit margins were unbelievably high and nothing was impossible.
And even if exposed, the companies faced almost no consequences.
That's the power of corporate influence -- having proof doesn't always matter!
Pharma was the same -- profits were insanely high. Drugs costing pennies to produce could sell for tens of dollars; others costing hundreds could be priced in the thousands or tens of thousands.
But these industries had their own problems.
Both military and pharma shared the trait of high R&D costs.
Developing a new weapon or medicine involved costs so high they were unimaginable, and success wasn't guaranteed. A flop meant millions or even hundreds of millions flushed down the drain.
Once, a company lost a fighter jet bid to Lockheed Martin, causing all its R&D expenses to become sunk costs, with thousands laid off on the spot.
Pharma companies were similar -- with each new drug's success backed by huge research investments and risky gambles.
Besides massive R&D, there was heavy political lobbying.
Military contractors relied on politicians to start wars to sell weapons. Pharma companies needed political backing to shield them from backlash over side effects -- the U.S. opioid epidemic was no isolated case.
Because of this, major military and pharmaceutical firms were giants, yet alike-run smaller companies failed every year.
Boom and bust cycles were normal.
People only saw the successes, not the many failures.
Otherwise, why weren't the richest people military or pharmaceutical tycoons? They had massive fame and influence, but their personal wealth paled compared to the internet boom moguls.
Whether George Soros, Warren Buffett, Lockheed Martin, Boeing, Pfizer, or JP Morgan, their fortunes might be huge but still weren't on par with Bill Gates, Mark Zuckerberg, or Elon Musk. Although Musk was more physical business, his operation was still internet-centered.
So in influence, they were powerful; in profit, internet ruled.
But if they fought head-on, the first group might win.
Redstone's front business was military and pharma -- they sold weapons and drugs, nominally to Africa, but secretly rerouted to Afghanistan.
If media used influence to make money, then military and pharma used money to protect themselves. So with media at the core, they cooperated across sectors.
Under Carr Media Group, besides Hollywood film advertising, a significant share of clients came from insurance, chemical, military, and pharmaceutical industries -- not consumer goods. That also matched Ian's focus -- he sought "influence." Walmart made money but lacked political leverage -- you couldn't make your customers selectively vote.
Don't underestimate military advertising -- even fighter jets got ads -- you had to convince people these government purchases were justified.
In short, media and big corporations were deeply intertwined.
Hearing this, Ian was surprised. "You're not suggesting Redstone should officially become a military and pharma manufacturer, are you? That would take a fortune. Redstone is just a shell company."
Gaskill smiled, "As I said, it only has to look the part."
Ian squinted. "Looking the part... This reminds me of a story I heard from China."
Ian recalled a tale from a past life, from a friend about a pharma company owner.
At that time, Chinese pharma was mostly about generic drugs -- basically tweaking patented meds to call them new.
The owner was clever, adjusting a cold medicine formula slightly to market it as a new drug, less effective but safe.
He sold this through connections and made a fortune.
Many Chinese pharma firms used that method, saving R&D costs and making profits.
This wasn't a Chinese monopoly, but "copying" was their strength at that period.
Ian realized he could use this strategy too.
No huge R&D investments, just knock-offs.
Best part? No one cared about complaints. In Afghanistan, no one would complain even about side effects -- having medicine was a luxury.
They didn't worry about legal or ethical costs; Afghanistan was a seller's market!
Clients there didn't complain, and paid top dollar, then thanked you.
They'd even risk their lives to protect the partnership, carry out suicide attacks, create news -- willing to strap bombs and charge.
Better than the Crips -- talk less, work better!
Crips: So you're changing mind now?
Thinking this made Ian laugh.
He shared the rough idea with Gaskill, who chuckled, "Exactly. Pharma works this way, and military too. We can reach out to some firms, find old patents to tweak, create so-called new products for export. We can inflate profits, boost costs, and fake a brilliant front. Madoff will love it."
"You sure we can fool him?" Ian asked.
Gaskill smiled, "That's not the point. Even if he sees through it, con men don't care -- they just want to think the company has great prospects. Of course, you must promise him some perks, but don't confront him personally."
Ian had a grudge against Madoff; showing up meant admitting he was setting a trap.
Ian nodded, "I can find the right people, but I don't plan to give him money myself... how about bringing in some victims?"
Gaskill nodded, "He'll like that. Who you thinking about?"
Ian grinned, "Our peers -- the big shots in finance and media. We can push ABC and CNN shareholders to Madoff. He's savvy but a sucker for money."
Lino Bank was just getting started; an impending bank collapse would be perfect to acquire.
2002-03 was America's military peak, unbeatable worldwide, but from 2002, the U.S. economy was already sliding. Though the crisis hit in 2008, signs appeared earlier.
Many sensed it, but timing was elusive -- betting too soon meant ruin.
Gaskill said, "If Natalie Portman reaches out, it's probably to gather intel. Imagine -- Ian Carr distrusts Madoff but still tries to secretly lend him money, showing trust deep down. She'd help pass the info. What's more valuable than inside scoop from your rival?"
Ian laughed, "Exactly. Ian Carr's a sucker who fell for the old trick... She better treat me well!"
Lena understood, "You and your team steer clients to Madoff, who funnels money to Redstone, which shows high profits and boosts Madoff's facade."
Ian said, "I don't have Madoff's fatal dirt or time to monitor him daily. If my people cooperate, we get better info and save time."
Gaskill added, "Then Ian can blow the whistle on Madoff's scam."
Ian shrugged, "Madoff sinks investing firm, Redstone moves profits and files for bankruptcy. Victims go to jail; no one investigates. If lucky, we get everything; else, compensate 20% and call it done. Finance and media moguls lose big; we expand Lino Bank and Carr Media."
A company used for illegal business often restarts after bankruptcy -- a standard routine. Move to another place as needed -- Afghans just want goods; who cares about Redstone's details?
Lena slapped her forehead: "Gaskill, I always thought you were a legit businessman."
Gaskill chuckled, "Before meeting Ian, I was. I pulled him out of gambling, and he dragged me into a criminal mess."
Ian smirked, "Sounds like I'm not a good guy either."
Gaskill said, "Now you need the right agent -- a skilled financial con artist who can take all the risks for you."
Ian squinted, "Ah! I do have just the person... You know my special talent training center."
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