Rogue Code (22 page)

“But we haven’t done anything wrong!”

“So we say. That’s what all the guilty types claim. They’ve heard it all and believe none of it.”

“By running we look guilty.”

“Jeff, Jeff. We look guilty already.”

After a minute, Jeff said, “So now what?”

“First, I need to find out more. Our stuff’s back at the hotel. I’m going out to see if I can get it. They’ve moved fast with this subpoena, but we’ve moved fast too and they won’t have expected that. I doubt an arrest warrant’s been issued for us. They’re probably planning on picking us up at work in the morning. Assuming they knew you were in the hospital they’d have gone for you there.” He reached into a pocket and extracted a thick packet. “Here.” He laid it on the table.

“What’s that?”

“That’s six thousand dollars. I’ve got a bit over four with me. I may need some of it before the night is over.”

“Cash? What are you doing with ten thousand dollars in cash?”

“Jeff, you amaze me at times, you really do. I never go on an assignment without cash. It’s the first lesson I learned at the Farm and in ops. Never leave home without it. This may be a plastic age, slowly turning digital, but cash is still king, especially when you go to ground.”

“Why would you need to hide out?”

“It’s been well over a decade since I last needed to, but once you’re in that mind-set, you never lose it. It’s like learning to look both ways before crossing a street, a lesson you would do well to take more to heart. It’s an instinct. And now”—Frank gestured by spreading both hands to take in the high ceiling, drab room—“you see why.”

Jeff eyed the money. “What’ll I do with it?”

“You’ll figure that out if I don’t come back. At least it gives you an option. Now, listen. I’ve taken the batteries out of our phones. Don’t get foolish and put yours back in and make any calls, and for God’s sake, don’t use the room phone. There’s nothing you’re in any condition to learn right now. Just get well. I’ll be back as soon as I can.” He stood up and slipped on his jacket. “You need to trust me on this, Jeff. It’s what I did for many years, and I’m still here to tell the tale. Now, get some rest.”

*   *   *

After midnight, Frank quietly let himself back into the hotel room. He closed the door, secured the inside latches, then turned on the bathroom light so he could see what he was doing with the indirect light. He set two pieces of luggage on the floor, and a plastic bag on the desk, then went to the bed. Jeff was asleep. Frank touched his forehead. No fever.

As he laid the luggage on the stands and opened his suitcase Jeff woke. “So you’re back. How’d it go?” His voice was drowsy, as if he’d awakened from a deep sleep.

“Not bad. I paid a bellhop to get our things. Probably money wasted. I never spotted anyone covering our rooms or in the lobby. I picked up some food if you’re interested, hot subs. And I bought some disposable phones. This dump’s got wireless, if you can believe it, so we’re good to go.”

“Do you know anything more?”

“I activated a new phone while waiting at the hotel and made some more calls to contacts from my former life. No one knows much, except this Alshon guy is known to move fast on occasion. We are apparently such an occasion. I called Stenton at his home.”

“Wasn’t that risky?”

“I ditched the phone.”

“What did he say?”

“He didn’t want to talk, said something about us violating his trust, and told us to turn ourselves in. At least it confirmed what we already thought.” Frank sat down, pulled something out of a paper sack. He laid it on the dressing table and began unwrapping it as the inviting smell of food enveloped the room. “Sure you don’t want something? Smells good.”

“I’m not hungry.”

“Fair enough. Don’t mind me. Go back to sleep.” Frank took a bite. When he could talk again, he said, “In a bit I’ll check if our backdoor is still up and see what I can see. Maybe get an idea of what set the Exchange’s IT off.” He took another bite. “There’s something else.” He looked over at Jeff. “I called Daryl and asked for her help.”

There was no answer. Jeff was sound asleep.

DAY SIX

SATURDAY, SEPTEMBER 15

TOPTICAL IPO LOOMS

By Lawrence F. Gooden

September 15

Next Wednesday, we’ll experience the latest big IPO when San Francisco–based Toptical goes public. It is the hottest social networking company going and once again “experts” claim it will be the biggest in history. Millions of users are clearly standing in line to buy a piece of the site they use every day and have come to love. Investors, we’re told, are salivating at the opportunity to get on board. Everyone’s hoping to make out, but will they?

Consider first the state of social networking. With the possible exception of pornography, nothing has so taken the Internet by storm as have the various manifestations of such sites. Still, the decline for social networking companies appears to take place just when they go public. Facebook began experiencing bumps at that point as have others. There are many reasons for this, not the least of which is the heightened level of SEC scrutiny and the need to maintain stock value.

But there’s another reason as well. Often these companies have run out of creative momentum just at that time. Their initial concepts have already seized the public’s interest, but their shelf life fades rapidly after two or three years. Competitors come along focusing on key aspects more effectively and many users turn social networking sites into marketing vehicles. In fact, marketing through social media is turning the public off in general, as is the insatiable collection of personal data, which these companies then put to their own use. Privacy concerns are increasingly raising their ugly head.

Toptical CEO and cofounder Brian Cameron says his company is different. “We respect the privacy rights of our users,” he said in a recent interview. Asked what guarantees the company was prepared to give he demurred. Toptical has yet to release the steps it takes to secure the private information of users.

There are more issues on the line next week. Toptical is just the latest social networking enterprise seeking to make its founders and initial investors mega rich. It’s slicker than others, gives the appearance of greater control to users, and is ideally suited for business use, but in the end, it works because it asks you to tell it everything about you. The more forthcoming you are, the more effectively Toptical works for you. And that’s the rub. How long will users continue laying out the intimate details of their lives to a company’s mainframes? They might call it the cloud but it is, in fact, just someone else’s computer.

There are as well areas of concern surrounding next Wednesday’s IPO, not the least of which is the new software the NYSE is going to employ. There are reports that two test runs encountered serious problems that have as yet to be resolved. Officially, all is well, but knowledgeable sources say that is not the case, in fact. The problem is that the NYSE has committed to its new program and can’t back down now without admitting a mistake. Management, it seems, would rather take a chance instead.

Also in the mix is the initial asking price and the volume of stock being sold. There are experts who say the price is too high and that far too much stock is being offered. The result could be an almost immediate collapse in share value. No one will like that except the jackals who sell it short.

We’ll know soon enough whether Toptical will be the next highly successful social networking company to go public, be a victim of IPO software gone amiss, or will be a financial debacle for those who climb on board.

© Copyright Financial News Analysis, LLC

32

WEST 109TH STREET

MANHATTAN VALLEY

NEW YORK CITY

11:34
A.M.

“You awake again?” Frank asked.

Jeff rolled onto his back, opened, then closed his mouth, feeling how dry it was. “Yes.”

“Feeling any better?”

Jeff paused before answering. “A little. My head doesn’t throb anymore, but I’ve sure got a headache.”

“That’s good, actually. Any double vision?”

“No, not since yesterday.”

“I guess I can admit now I was a bit uneasy about taking you out of the hospital before the doc examined you. The MRI and X-ray looked good but there’s nothing like an experienced doc seeing you eye to eye. But it seems like you’re good to go. That’s a relief. There’s water beside you.”

Jeff reached over, found an unopened bottle, twisted off the cap, finding his grip surprisingly weak, and drank it in a single pull. “That’s good.”

“You hungry?”

“I am. Very. But I feel really dirty. I need a shower.”

“Even better. I’ve ordered pizza. It’ll be here in a few minutes. You have time for a briefing and maybe a shower.”

Jeff straightened up in the bed, moving the pillow so he could lean against it more comfortably. “So what have you learned?”

“Quite a bit,” he said. “It turns out you’re rich, to the tune of just over three million dollars. You’ve been a very naughty boy, and very greedy.”

“What are you talking about?”

“When you were inside the Exchange’s engines, you used some of your tools to plant a nasty piece of code that’s been skimming trades. You’ve got a brokerage account in your name, opened after we started this job, and you funnel your ill-gotten gains directly to it.”

“Brokerage account? I don’t have a brokerage account.”

“You do now.”

Jeff’s heart jumped. “How hard was this to find?”

“Not so hard. You’ve not only been naughty and greedy, you’ve been careless. Not like you at all. Your malware trades at a consistent rate. It makes no attempt to blend in with traffic so it was bound to attract attention. And, of course, you send the money directly into your account so it’s easy to make the connection to you; almost like you put a flag on it. Then there’s the really interesting part. This malware resembles the code you’ve been reverse engineering. I think that gives us a pretty good idea of what this case is really all about.”

“Whoever did this used my tools?”

“Right. Some of those you distribute at conferences, none of the proprietary ones that have made you the success you are today.” Frank grinned.

“So anyone could have planted it.”

“In theory, yes, but think about it. Whoever did this has access to the system. Maybe they hacked it like we did or…” Frank’s voice trailed away.

“They work there and already have access.”

“I hate to think someone’s been as clever as us and figured out how to hack into the New York Stock Exchange, but ego aside I must admit someone could. That said, it’s unlikely. I’m persuaded that whoever is doing this has help on the inside. It’s clear now that we stumbled on an ongoing operation. They needed to point the guilty finger at you before we figured out what they were up to, which suggests to my devious mind that it’s an inside job.”

“That sounds pretty shortsighted and desperate.”

Frank swiveled all the way round in his chair. “I’ve been thinking about this. What it really says is they want to buy some time.”

“How’s that?”

“While our federal friends can be made to move quickly, as they did in this case, there is the risk that once they hear our side of the story they’ll come to the same conclusion I have. Then they’ll go after the real culprits.”

“If they can find them.”

“There’s always that. But it would take us a few days, more likely a few weeks, to convince the SEC we’re clean. I’m pretty sure that’s their window.”

“What window?”

“Well, they’re going to try to erase all their tracks—that’s a given—but why not take some more while they can, right? Makes sense. They’ll have to close down soon, so make hay while the sun shines. This little scheme of theirs bought them some time.”

“I guess we were close.”

“I’d say so. I made some phone calls while you were out. This Alshon guy is every bit as tenacious as I was told he was. And he’s not going to let go of us. He used to be FBI, we used to be Company. No love lost there. However, he’s got an assistant named Susan Flores. She does the forensic work and is reputedly very good, and very fair. If she gets on this, how you were set up could become obvious.”

“You really think so?”

“In time, yes, assuming she doesn’t have ten other cases, assuming Alshon lets her and listens to her. But the longer you are the prime suspect, the less likely he is to admit he was ever wrong.”

“Based on what you say, I can’t believe I’m a suspect now. This is all pretty heavy-handed. Don’t they realize I’d be smarter than that if I was crooked?”

“No. Crooks usually aren’t that clever. They’re driven by greed. Alshon will just figure you got in there, saw all that easy money, and couldn’t resist.”

“But using a brokerage account in my own name, come on, how dumb is that?”

“He’d reason you planned to erase your tracks, so why not? It was only for a few weeks. The risk was low.”

Jeff eased back, his thoughts racing. “Frank, you don’t have to do this. I’m the one they’ve set up. Just go in and tell them what’s going on.”

Frank smiled. “Don’t be naïve. They’re after both of us. They don’t figure you did this alone. Anyway, I’ve got more. A fugitive warrant’s being processed for our arrest. We’ll be wanted men later today probably, definitely by Monday.”

“That’s just wonderful.”

“Maybe there’ll be wanted posters and we can pin them on the office wall later, when we have a laugh about all this.”

“You have a sick sense of humor.”

“So my wife says. I called an SEC defense attorney. I got a referral, so he gave me a phone consultation. He says Alshon’s an SOB, and he’ll already have hung a target around our necks.” Just then, there was a knock on the door. “That’ll be the pizza. Why don’t you take a shower, then join me after?”

*   *   *

In the bathroom Jeff removed the bandages from his head, his thoughts afire at what he’d just learned. He undressed, then stepped into the bathtub and showered, taking special care with his scalp. Under the hot water he probed lightly. There was a tender spot toward the rear, a large goose egg that was very, very sensitive. His entire side ached and rubbing it did no good. His left forearm really hurt. When he peeled the wet bandages from it, it was skinned pretty badly. It hurt so much, he didn’t want to use it. So don’t use it for a while, he told himself.