chsdbacks Page 234
Page 234
He followed some of Chicago's old traditions, but also donned the cloak of modern commercial civilization and "free America."
Yes, of course he complies. He won't resort to vigilante justice, much less engage in any barbaric acts like "skinning"—that's just a threat meant for certain individuals, a gesture.
The final solution was swift and efficient:
All those involved in embezzlement must return all illegal gains within a specified time, not a single penny less.
Old Joe's team will conduct a rigorous check.
Then, they and their immediate family members will be "advised" to leave Chicago permanently.
The group owns large tracts of agricultural land and farm facilities near Tulsa, Oklahoma, where a "reliable workforce" is needed for "management" and "labor."
In reality, it was a form of exile, far from the center of power and the bustling world, living a life of near isolation in the vast farmlands "for the safety and future of the whole family."
No one would resist this "suggestion" because they knew what the consequences of refusing might be.
As for the two managers who were not only greedy for money but also "talked nonsense," their fate was much more "unexpected."
A few days later, a brief news item appeared in the social news section of the local tabloid:
Two men were drinking by the Chicago River late at night when they tragically fell in and drowned.
Preliminary police investigation has ruled out homicide, but suspect it may be related to excessive alcohol consumption.
Relatives and friends expressed their condolences.
Everything is reasonable and in accordance with procedures.
In the conference room, Victor Lee looked at the pale and terrified faces and slowly said, "I'm not a saint, and I have no interest in saving anyone's soul. I'm doing all this simply to protect our shared money. To prevent those covetous white guys outside from slaughtering us like fat pigs. Understand?"
No one dared to remain silent. Iron
The ruthless Victor Lee, through a cold-blooded internal purge, consolidated his authority once again, and also announced to all of Chicago:
Even in the warm spring, his rules are not to be challenged.
After cleaning out the internal termites, Victor Lee was faced with a chaotic external environment.
Black Monday was like a magnitude 10 earthquake, shattering the dreams of countless people to become wealthy.
Chicago's real estate market was hit hardest, with prices plummeting. Countless previously highly sought-after properties became deserted, many investors lost everything, and banks were left with a large number of foreclosed properties due to defaulted loans, turning them into a hot potato.
However, for Viktor, there is always opportunity hidden in crisis.
He never forgot his original goal:
Accumulate enough wealth and power to gain a foothold in this dog-eat-dog world and avoid being devoured.
The current market panic presents a good opportunity to buy assets at low prices.
He clearly recognized that with Skycity Group's current strength, it was too early to acquire those iconic skyscrapers or top-tier office buildings.
That's a game for even larger, more powerful financial giants.
His goal is more practical:
Small and medium-sized properties are scattered throughout Chicago’s neighborhoods, especially street-front shops, small apartment buildings, and undeveloped land.
These assets are currently extremely undervalued, but they form the foundation of the city and the basis for its future recovery.
The plan is set; execution is key.
This requires a huge amount of capital, and even more so, "tacit understanding" from the financial and tax systems.
Viktor had mastered this principle: leave professional operations to professionals, and focus on building relationships.
He was not fighting alone.
Over the years, through various "compliant" and "non-compliant" means, he has built deep "relationships" with some powerful figures in Chicago and even Illinois.
Among them, several key figures in the Chicago tax office had particularly close relationships with him.
A private dinner was held at an unassuming private club on the outskirts of the city.
There was no audio recording or record.
Victor, CFO E.R. and Jimmy, the director and deputy director of the Chicago tax office, and a locally influential banker—the bank holds a large amount of distressed real estate assets that need to be disposed of quickly.
They chatted and laughed at the dinner table, talking about golf and recent sporting events, but the real deal was struck through veiled words and tacit understanding in their eyes.
Banks need to clean up their balance sheets as soon as possible and liquidate non-performing assets, even if the price is very low, it is better than letting them rot in their hands.
The tax bureau is happy to see these “troublesome assets” dealt with quickly, stabilizing the market—at least superficially.
At the same time, these transactions can generate revenue such as stamp duty and transaction tax, which, although not much, are still a political achievement during times of fiscal strain.
Victor, on the other hand, was willing to take over these assets in large quantities at a "fair" price—far lower than before the market crash, but slightly higher than the current panic selling price.
"Auction is the best format."
The deputy director of the tax bureau took a sip of red wine and said slowly, "Open, transparent, and in accordance with procedures. We will ensure that the process is efficient and smooth."
This means that some potential competitors may encounter "unexpected" difficulties in terms of eligibility verification, proof of funds, etc., or may simply not know the specific information about certain auctions.
The banker nodded in agreement: "We will bundle some asset packages together, and the starting price will be set at a 'reasonable' level."
This is reasonable, of course, from the perspective of Viktor.
Victor raised his glass: "To the recovery of Chicago, and to our pleasant collaboration."
The wine glasses clinked together, making a crisp sound.
An exchange of benefits was conducted under the guise of legality.
In the following weeks, a series of quick and low-key auctions were held.
SkyCity Group and its affiliates have successfully acquired thousands of small and medium-sized properties across Chicago at surprisingly low prices.
Their sheer number accounts for almost one-tenth of Chicago's total real estate area.
Those in the know understood that Victor had made a precise bottom-fishing move, but no one dared to publicly question the details.
The documents are complete and the procedures are legal. As for the tacit understanding behind it?
That's an unspoken part of the business world in Chicago and even the whole of America.
Victor invited Chinese Americans from all over the United States to participate. With Skywind City as a guarantor, bank loans, and contributions from the Chinese Americans, they jointly acquired these properties—bringing the number of Chinese Americans in Chicago to 350,000.
At the same time, Victor invested almost all of the abundant cash flow generated by the group's catering and casino businesses into the construction of Skywind City Group's biggest prestige project and future cash cow—the Skywind City Twin Towers.
This skyscraper, scheduled for completion by the end of 1988, would become a new Chicago landmark and a symbol of Victor's ambition. It had to stand before the market recovered.
Chapter 198 Boxing Match and Cry for Help
While Victor Lee was busy with internal purges and external bargain hunting, his old rival, Donald TLP, far away in New York, was facing unprecedented difficulties.
"Black Monday" also dealt a heavy blow to TLP's business empire.
His core business—real estate, especially high-end real estate—has seen its value plummet.
The bank kept calling to collect loan payments because he had previously over-leveraged himself, repeatedly mortgaging large amounts of property to obtain funds for expansion.
The value of the collateral has now shrunk significantly, and the bank is demanding that he provide additional margin or prepay part of the loan.
TLP Group's cash flow has deteriorated sharply and it is on the verge of collapse.
To make matters worse, Viktor never forgot this arrogant rival and their past grievances.
TLP was once tricked by Victor into investing $400 million in the Skywind City Hotel project, intending to take a dominant position. However, Victor cleverly used contract terms and market fluctuations to gradually dilute and squeeze TLP's share of the profits.
Ultimately, during the panic selling and forced liquidation brought about by Black Monday, Victor used his funds to buy up all of TLP's shares at an extremely low price, completely kicking it out of the game.
This deal resulted in a huge loss for TLP, who had wasted two hundred million US dollars of its initial investment.
But this is just the beginning.
Viktor believed in striking while the iron was hot.
He will never give his opponent a chance to breathe.
He used his network and resources, hiring top-notch business investigation teams and media "consultants" to specifically "dig out" and "amplify" the weaknesses of the TLP Group.
Soon, "analysis reports" and "anonymous messages" about TLP Group's financial difficulties, major hidden dangers in its projects, and overdue payments to contractors began to appear in financial media and tabloids.
These negative news stories spread like a virus, further damaging market confidence in the TLP Group, making it more difficult for it to raise funds, causing its stock price to plummet (if the company were to go public), and increasing the doubts of its business partners.
Being a blond-haired guy isn't so easy.
However, Victor's most ruthless move struck at TLP's Achilles' heel—tax issues.
He clearly remembered that TLP had previously gone to great lengths to secure and host Victor's five title defenses in order to promote its casino hotel through the boxing championships.
The related appearance fees and box office revenue share amounted to 120 million US dollars. According to the contract, this money should be paid by TLP Group to Victor's promotion company, and TLP Group should be responsible for withholding and paying the relevant taxes on his behalf.
However, in accordance with its usual practice, TLP has been slow to pay the full amount, and has also delayed paying taxes.
This might have been able to be delayed through accounting methods in the past, but in this sensitive period, it has become a fatal loophole.
Victor's friends—the chief and deputy chief of the Chicago tax office—"timely" revealed this information to the Atlantic City tax office.
Atlantic City is home to TLP casino hotels, and the local tax authorities have long been dissatisfied with TLP's various "tax avoidance" methods, but have been struggling to find conclusive evidence and a suitable opportunity.
Now, the time has come.
The Chicago and Atlantic City tax offices quickly reached an "agreement," forming a joint investigation team and announcing a full investigation into TLP Group's tax issues related to boxing match fees.
The scale of the investigation is unprecedented.
The investigation team quickly determined that TLP Group was suspected of serious tax evasion and immediately took coercive measures:
The relevant accounts were frozen, and TLP's two jewels in Atlantic City—the Plaza Casino Hotel and the Castle Casino Hotel—were directly seized.
The official statement said that if TLP fails to pay the huge amount of taxes, penalties and late fees within the stipulated period, these properties will be forcibly auctioned off to pay off the debts.
This strike hit the vital point.
Casino hotels are TLP's most important source of cash flow; seizing them is tantamount to cutting off its lifeline.
The news has plunged TLP Group into a truly precarious situation.
According to sources close to TLP, he flew into a rage in his office at Trump Tower, smashing his beloved crystal ashtray and berating Victor Lee as a "Chicago scoundrel" and a "commercially unethical conman."
But he was not facing an emotional problem; rather, he was facing a cold legal and financial crisis.
In a state of utter distress, TLP had no choice but to swallow its pride and extend an invitation for reconciliation to Viktor through an intermediary, hoping that he would be lenient on the tax issue and at least agree to postpone payment or renegotiate the boxing fee in order to alleviate his pressure.