Richard didn’t retreat. He puffed out his chest, clinging to the delusion that technicality would save him.
“I didn’t buy equity in your firm,” I said, turning to face him fully. “I know Rule 5.4. I memorized the ABA Model Rules before I incorporated Vanguard.”
Richard’s nostrils flared.
“I didn’t invest in you,” I continued, voice sharpening. “I bought your debt.”
Judge Sullivan lifted the thick file of loan agreements and handed it to me without a word. The courtroom watched like it was witnessing a magician pull a blade from a sleeve.
I tossed the file onto the table in front of Richard.
It landed with a heavy thud.
Two years of planning, printed in ink.
Two years of him driving a Porsche he didn’t own.
Two years of him bragging about a lifeline I held.
Two years of him not realizing the rope was already around his ankle.
“Two years ago,” I said, pacing slowly, “you were drowning. Three banks rejected your loan applications. You were payroll insolvent. You were weeks away from losing your license for commingling client funds to pay your country club dues.”
Richard’s face twitched.
“That was temporary,” he snapped. “Cash flow. Every firm has—”
“It wasn’t cash flow,” I said evenly. “It was insolvency.”
Bennett’s shoulders sagged like he knew what was coming and couldn’t stop it.
“Vanguard bought your loan,” I said, tapping the file, “your credit line, and the lien on your equipment. Then we extended you six hundred fifty thousand dollars on a senior secured basis.”
Bennett flinched. He understood now. Every lawyer understands the difference between an investor and a secured creditor. One wants you to grow.
The other can take your house.
“I’m not your partner,” I said, voice cold and clear. “I’m your senior secured creditor. I don’t own your firm.”
Richard opened his mouth, but nothing came out.