Adam Blake - 114. Chapter 114

Walking into my office, there was a pile of correspondence on my desk. I separated them into now and then. There was a note from James, “Be sure to call Ambassador as soon as possible.”

I also noted a letter from the trustees. I decided to open that letter first and it was a good thing I did. The latest issue was spending the school money on buses. Now I called the Ambassador.

“Good evening Ambassador or is it good morning where you are… yes I received a letter from the trustees… who said that the school paid for those buses…jumping to conclusions is like jumping into a nest of vipers…of course the school didn’t pay for them. A gentleman paid for them as a contribution to the school… you might know this man but I’m not at liberty to disclose who he is…you know what I’ll do, I’ll send you the invoice and you can see it was paid by a private check…no they didn’t cost 100 thousand each…I know where that number came from, our smart computer boys checked the price of the basic coach, added what they perceived to be the most of the additions, and came up with a number. .. according to the invoice, a little over 23 thousand…well when I looked at the bus, there were a few additions I wanted to be made. The builders were very happy and have introduced a new line, so we got it at cost after agreeing to a licensing fee…I’ll send you the invoice first thing in the morning when James is here…you might be right but I won’t tell.”

The next morning, I took my invoice for the buses, deleted my name and my account number on the check. As I was leaving to get my coffee, “James, good morning. After we get our coffee, fax this to the Ambassador. We need to find out which one of our trustees is a trouble maker.”

I knew that fax must have just got to his office when the phone rang. James mouthed the word, Ambassador. “Good morning Ambassador…yes that is the one and only invoice…I’m glad that you noted the comment from the owner…they don’t believe it and want a mid-year financial analysis…the school isn’t going to pay for that, so if the trustees want that report, they will have to pay for it…no under corporate laws only one financial report is needed for the fiscal year which for us is the school year…Legally we don’t have to do it…yes, I understand but the school is incorporated in the US and therefore the laws of the US apply…an annual financial report similar to the report last year will be issued at the end of this year’s school term…If they want a mid-year report, they will have pay…yes I’ll fax you the information.”

I called dad, “Dad, the Board of Trustees want a mid-year financial report…no, I think they had a coming-to-Jesus, meeting… how much will that cost…can you send me a proposal so I can tell them if they want it, they need to pay for it…I don’t know, I’ve never seen an invoice…Brad didn’t find any tax receipts…I’ll check with the county and let you know.”

“James, who collects property taxes?”

“The county assessors office is responsible for issuing the assessment and then the county budget is set, the budget needs to be balanced. Simple calculation”

“Do the people vote on the budget or is it by town hall?”

“They publish a proposed budget, then a town hall meeting is held. Seldom changes.”

“The accountants can’t find any tax receipts. Where would I go to find the tax receipts for the school?”

“County office, I’ll come with you.”

We drove to the county office and I found out why James offered to come. We walked to the receptionist, I told her who I was and I’d like to see the tax records for the Academy. She looked up and saw James, “James, why are you here?”

“Do you know this young lady James?”

“She’s my fiancé.”

“You’re a sneaky devil. You two can chat while I look at our tax records.” I followed the young lady to a room where all of the tax records were kept. She pulled a book, handed it to me, and indicated a table I could use.

Leafing through the book, I saw that the taxes before the school was built had all been paid. Once the school was built, the amount of taxes paid was the same without the school. Normally a building on a lot increased the taxes. From that period on there was no tax paid. I copied the amount levied and the amount paid. Taking in the 8 years the school has been operating, the tax not paid amounted to almost 650,000 dollars. “Excuse me, can I have copies of these pages?”

She took the book and made copies for me. “What happens when taxes aren’t paid?”

“There is generally a lean against the property and then it is sold off to the highest bidder.”

“If I didn’t want to pay my taxes and I didn’t want anyone to know, who would be in a position to do that?”

“The tax collector”

“But wouldn’t he have to show the income?”

“Yes, but if he’s smart, he can show a deposit and then a withdrawal for business reasons.”

“Is the same person who collected taxes say 4 years ago still here?”

“No, he left about 2 years ago.”

“Thank you. Come on James, kiss her goodbye, and let’s go.”

“Another problem yes but this one may backfire on some trustees. I need to see the county commissioner.”

“He’s probably at the courthouse. That’s where his office is.” We walked into the courthouse, “His office is on the third floor.”

We walked into a very attractive office, with various pictures of the county on the wall. I introduced myself and James and asked if it would be possible for us to have a meeting with the commissioner. She said he was out of the office and would be back shortly. I asked where the men’s room was, she said to take a left as you leave the office. We walked out and I put my hand on James’s arm to stop him. “Watch,” as I said that a side door opened and a man left. James stepped up.”

“Commissione,r this is Doctor Blake from the school. He’d like a word with you?”

“I’m very busy, I don’t have time.”

“Commissioner, I’ll give you a choice or you'll read about it in the newspapers.”

“I don’t understand, there’s nothing for the newspaper.”

“How about tax fraud and a little lining of the pockets?”

The man turned white. “You can’t prove any of that.”

“I actually can, the bank you use for this scheme is owned by me, or at least 65 percent is owned by me. I can pull every check and who it was paid to for the last six years when the school’s tax wasn’t added to the county’s coffers. Now can we talk?”

And talk we did, he agreed to resign, I agreed to not pursue the case, he agreed to place a tax lien against the property, I agreed to pay the lien which meant I’d own the property.