Hi-Tech Hijack (17 page)

If it weren’t for their two children who had been born in Israel, the country she fell in love with, Suzy would have left Mickey and returned to her loving family nest in New Haven, CT, a long time ago. When she was in high school, she joined her father on a philanthropic visit to Israel. The trip made such an impression on her that making
Aliyah
—immigrating to Israel—became a dream she promised herself she was going to make a reality one day. Out of sight, out of mind. Suzy—who, in the meantime, graduated from a local university in New Haven—forgot about her dream and started working in the office of the venture fund run by her older brother. The capital for the fund came from the family’s fish businesses, and it was only natural that Suzy, who majored in economics, worked on the family fund.

The fund offices were housed in an old building that the family had owned for two generations. The building had been completely renovated and its traditional, eighteenth-century New-England façade beautifully restored. It sat across the full length of one of the city square’s four edges opposite the town hall. Its distinguished location matched the reputable character of its owners and dwellers.

The fund was run by Suzy’s brother, and her father was head of its board. It was considered medium in size, but one that made top-quality investments, especially in medicine and biotechnology. The projects were such that they were typically conceived at one of Boston’s prestigious and luxurious universities located in the picturesque green little towns surrounding it. New Haven was close enough to Boston so that every starting entrepreneur in the area would come to it before daring to try and meet with the big sharks in New York. That way the fund had the opportunity to enter these innovative projects right at the seed stage without having to compete with the New York fund giants.

Suzy’s parents were delighted when one day their daughter returned from New York and told them at the
Shabbat
dinner table that she had met an Israeli guy. At the time, twenty-five-year-old Suzy was having a relationship with the son of one of New Haven’s richest families. They say money always attracts money, but in this case, one of the monies wasn’t Jewish, which worried Suzy’s parents very much.

During that week Suzy was involved in a road show, marketing a company to investors. The family fund had put in the seed money, and Suzy spent the week in New York. She had a meeting at a law firm that represented another investor, and there she met a paralegal—an economist who was about to finish his law internship. The Israeli guy was named Mickey Rush.

They looked at each other with their two sets of blue eyes and fire ignited between them right on the spot. Tall Mickey with his broad shoulders looked down at petite, brunette Suzy—her skin tanned from a week in the Caribbean with her boyfriend. At first sight Suzy was sure Mickey was Scandinavian. With his light-colored hair and piercing-blue eyes, she had no idea he was Israeli.

During those days Mickey hardly saw daylight. He was working all hours of the day and late into the night at the law firm under the harsh neon lights. It was the most difficult, demanding year in his whole life. He had never worked that hard before. He swore to himself once his internship was over he was never going to sell his soul to his career ever again. Or his body to Bernard, the senior partner at the firm and Mickey’s patron who enjoyed Mickey’s body in a humiliating twice-weekly routine. Mickey swore he was going to find a way to build finances that would allow him to control his own life, and no moral inhibitions were going to get in his way. “My friends call me Bernie,” whispered Bernard into Mickey’s ear after their first intercourse, and Bernie he called him from then on.

The year was 1990, and the hi-tech bubble was starting to generate its first young millionaires—creative, talented entrepreneurs from the computer and communication fields. The growing bubble attracted more money and capital than ever before, and Mickey too was dreaming of exploiting it to make his own wealth. What he lacked was that Archimedean point—that financial base he could leverage to infinity. The day he met Suzy at the law firm, he still didn’t know he had found his Archimedean point, which in this case was covered in pure gold. They spent the entire week working closely together and sharing late dinners. On the night before Suzy was meant to return to Connecticut, she invited Mickey to stay with her at the luxurious Marriott on Times Square.

“My treat,” she said before he had the chance to be scared by the six-hundred-dollar-a-night expense. It was pretty much the equivalent of his weekly income at the law firm, not including the bonuses he was given twice a week by his patron in exchange for sexual favors. Two weeks later Mickey was already spending the weekend at the Berkowitz family residence in New Haven.

At the end of their
Shabbat
dinner together, the whole family, including Suzy’s brother, Erwin, and his usually judgmental wife found Mickey totally charming. Socializing had always been one of his strengths. He was a great storyteller and a pleasant conversationalist, and above all, he knew how to sell himself, his skills, and abilities, and went to great lengths to leave the impression he wanted.

Two months later, Suzy and Mickey announced their intention to get married and to move to Israel. Suzy’s father was happy and proud to hear the news. The generous Jewish philanthropist now had something much more significant to brag about in the community—his own daughter was making
Aliyah
, leaving the paradise of New Haven for the harsh reality of Israel. Suzy’s mother reacted with mixed emotions. On the one hand she was glad the risk of her daughter marrying a gentile was over, but on the other, she hated the thought of her moving halfway across the globe. Their big house was already feeling too empty since Erwin moved out, and now Suzy was going as well.

They had a luxurious wedding at an expensive hotel in New Haven. A few weeks before the wedding, Suzy’s father told Mickey he was setting aside several million dollars that would allow them to buy a house at a prestigious neighborhood in Israel and start Mickey’s law firm.

The father had only one request. “The firm must be named Rush-Berkowitz. As you know, my brother and business partner is also a lawyer and even practiced for a few years before he got sucked into our business. It will be no problem to name him in the title, although you’ll have full ownership. I never made
Aliyah
myself and did not immigrate to Israel, but at least that way my daughter and my name will,” he said, smiling resignedly. Mickey happily agreed to his father-in-law’s request. He knew having an American lawyer in the firm title would benefit business in Israel. Suzy’s father had a part of his dream fulfilled, but Mickey has his life’s dream realized completely—to become rich, and fast.

Just because he was engaged to Suzy, Mickey was not free from fulfilling his sexual obligations to his boss. He was counting the weeks he had left ’til the end of his internship, when he would finally get that saving letter confirming his duties were complete. Until then he was like a puppet on a string, manipulated by Bernard’s sexual appetites.

It was the mid-1980s and Mickey and Bernard were tied to one another by the secret of their homosexual relationship. Neither one of them was going to risk exposing the other man’s secret since they would both pay a terrible price—in their marriages, their professional lives, and the career Bernard had made and Mickey was only starting to establish. Mickey, who left boarding school as a young boy because he couldn’t stand being Avi’s whore, found himself selling his body over and over again and was fine with it. He convinced himself that it was something he was just better at than other people. Women and men wanted him, and he used both sexes to his advantage and physical pleasures. As long as it served his greedy goal—to become rich—it was ok.

In the beginning of 1991, after their honeymoon in Hawaii, Mickey and Suzy moved to Israel. They lived in a fancy apartment hotel on the Herzliya beach and started to house hunt. It took them a few months to find the perfect home, and finally they settled in Kfar Shemaryahu. Mickey started his law firm in Tel Aviv in the most expensive floor of an impressive, new glass skyscraper.

As a US passport holder and a certified American attorney and with recommendations he showed at the Israel-America chamber of commerce, Mickey quickly scored his first clients—companies and individuals that imported or exported to the United States But his insatiable greediness and his desire to prove he could make it on his own without his wife’s family money drove him in search of quick fixes, which he found by associating with a childhood friend who collected debts in the gray market.

Four years went by, and Suzy was already pregnant with their second child when his friend’s criminal entanglements almost took Mickey down as well. He got out by the skin of his teeth but was permanently disbarred and could not practice law anymore.

Mickey’s trip to Belgium the day Reuben met Carolina was short, and when he returned, he immediately called Reuben to let him know he managed to complete the fundraising needed for the investment in Ebocell-Tech. That very afternoon the two of them met for a sunset cocktail on board the yacht to try and finalize the terms of the investment.

Mickey greeted Reuben with his usual friendly disposition, holding two glasses of festive drinks.

“Just a little something I picked up from the bartender at the Brussels Hilton,” said Mickey. As Reuben tried the cocktail, Mickey handed him the cigar box, and Reuben happily chose a small joint.

“I see you’re skipping the main course and going straight to the desert.” Mickey chuckled and took out a full size Cohiba Corona cigar for himself.

“I’ve been waiting for this all week,” said Reuben, embarrassed.

“It’s about time you had a little stock of your own. Really, you can’t just rely on meeting me. Just don’t overdo it. Here you go. You got seven pieces here that should last you a week.” Mickey took a small tin box from his cigar shelf, one that usually holds rolling tobacco, put the seven joints and a small lighter in it, and gave the box to Reuben.

“Thanks. I just need to think of a place to put it so that Ronit doesn’t find out.”

“How’s Eddie doing? When are you going to bring him in on things?” said Mickey, changing the topic.

Until that day, Reuben hadn’t dared tell Eddie how advanced his talks with Mickey were and described them as nothing more than initial contacts. His only hope in convincing Eddie to let Mickey join them was to construct the deal in its entirety and present it to Eddie when opportunity struck—that is, to catch him in a moment of total desperation. Except Reuben waited too long. A few days prior, Eddie went ahead with his plan and injected himself with the weakened Ebola virus.

“You don’t want to know.”

“Why? What is it?” asked Mickey nervously.

Reuben took a deep breath and told Mickey about the experiment Eddie had decided to hold on himself.

“Why didn’t you tell me about this before I left?” asked Mickey in an angry tone.

“It happened the night I was here with Tzipi and your . . . eh . . . Cuban friend. I only found out about it the next morning.”

“But why didn’t you let me know as soon as you found out? You knew I was over there working on your investment. What are the chances of him making it?”

“You’re right Mickey, and I apologize. I should have told you. His condition is still very serious. He’s being treated at my wife’s ward, Ronit’s ward, and she’s taking care of him.”

Mickey’s expression was grave, and Reuben felt intimidated. “Promise me, Reuben that this is the last time you keep anything that has to do with the company from me.”

“I promise, and as I’ve said, I’m truly sorry, Mickey. But it all happened only a few days ago, and to be honest with you, I’m worried and confused by the whole situation myself.”

“If you think about it, there’s actually some good in this,” said Mickey. “If Eddie makes it, that means the shortcut works and that the serum that combines the Ebola Reston you procured from the mice bone marrow has indeed developed antibodies for the Congo Ebola.”

“It certainly does.”

“But we still don’t know how it’s going to react to human cancerous cells.”

“The cancer-infected mouse we injected the substance into has been responding well. Normally it would be dead weeks ago, but it’s still alive and well.”

“So what is there left to prove?”

“That control over the genetic codes of the virus we developed ensures its ability to distinguish between a cancerous cell and a healthy one. Also, we need to repeat the experiment several times to prove it can be reproduced. The next stage would be to test on monkeys or pigs, depending on the resources we have. Monkeys are more expensive. Ideally we would get a monkey that has cancer so that we can decisively confirm our theory. Then there are the clinical trials on humans for which we need the permits from the Ministry of Health. We can’t skip any of these stages, but the shortcut that Eddie took certainly clears all doubt as the feasibility of the process we developed. For you as an investor that means taking a much smaller risk, which should increase the company value. . .”

“You know what? That Eddie is one crazy guy, but he sure is brave,” said Mickey.

“He certainly is crazy, there’s no argument there.” Reuben was all too happy to share some of his troubles with his new partner.

“A good kind of crazy in this case.”

“Easy for you to say, but try living with him day by day with sixteen-hour workdays.”

“That’s how it is. Usually those technological-entrepreneur characters are extremely stubborn, have huge egos and massive amounts of talent; but they are also individualists, and they expect the whole world to march to the beat of their drum.”

“So what are the normal people who work around them and have to develop a company with them supposed to do?”

“Get rid of them when the time is right.”

“What do you mean?”

“In all the companies I’m involved with, I see the same process over and over again. It has to be done. One second after the technology is proven, one minute before it becomes an actual product, you need to neutralize the influence of the technological entrepreneur and narrow his contribution to just the technical level.”

“And what if he doesn’t let you do it?”

“Then you force him.”

“What are you saying?”

“First, you need to remember that after we invest in your company, your shares will be diluted and the control won’t be just in your hands.”

“Yes, but in our case, Rose, as Aubrey’s inheritor, allows us to do what we see right, or more precisely what Eddie sees right; so Eddie will still have control of the company with his shares and Rose’s.”

“I’m not going to invest unless I have control of the company, Reuben.”

“That wasn’t what we talked about.”

“Right, but since then months have passed and your finances have only gotten worse. My partners in Europe insist on this.”

“The cash flow is still negative, you’re right, but the successful test on Eddie is a real significant scientific breakthrough.”

“You said so yourself, it can’t replace the animal trials and certainly not the human trials; so in terms of schedule, we haven’t gained much. Eddie’s experiment doesn’t change how much money you need.”

“But what about the fact that it proves its feasibility?!” protested Reuben.

“That’s important, but it cannot be measured in cash.”

“If Eddie knows this is what you think, you can forget about investing in us.”

“He doesn’t like me any way, but in any case I can’t see how you have much choice.”

Reuben was getting more and more nervous. He had already finished his first joint and with shaky hands was opening the tin box Mickey had given him to take out another one.

“Tonight’s on me.” Mickey stopped him, handed him another joint from his cigar box, and lit it for him. Reuben inhaled the addictive smoke and searched for a bottle of water.

“Come on, I’ll make us another round of drinks, and we can talk about all this calmly.” Mickey tried to get Reuben to relax.

Mickey ceremoniously prepared the cocktails, leaving Reuben to wind down with his joint.

“You can trust me Reuben when I say things will go our way. After all, you and Eddie are very different. You’re a little older and certainly much more experienced. You have a beautiful, intelligent wife, and she won’t let you follow your partner’s whims. It’s about time you started thinking of the company in terms of I, not us. The question you should be asking yourself now is what you get out of all of this, not what Eddie thinks or whether or not he likes me as an investor. Right now if I’m reading the subtext of what you’re saying correctly, I am the only relevant investor you have. I want to invest in your company because I believe in its technology, in its marketing potential, and in you. Not every start-up has a founder that can take the company forward to its business stage. I see that in you, and I put my trust in you. You’re the one I want to have control of the company with.” Reuben’s expression mellowed, and he was intrigued by what Mickey was saying and by the many compliments he showered him with.

“I know Eddie won’t hand over control just like that. Therefore, I suggest that I buy forty percent of the company and give you a loan that will allow you to put in another twenty percent, regardless of the options you’ve been given. Eddie obviously wouldn’t know where your money came from, and you’ll have to come up with some convincing story—perhaps some sort of an inheritance or something like that. Eddie won’t be able to resist if you offer him that move. That way the three of you would each have twenty percent of the shares.”

“And what about the control?”

“Well . . . this is where we get to our little arrangement. You and I will sign a binding agreement that guarantees you always vote with me.”

“Why would I do that?”

“First, because without that I won’t give you the loan. And second, because you care about the future of the company, and you understand Eddie and Rose don’t exactly know much about business.”

“Is this legal?”

“It’s completely legal. Lots of companies have binding voting agreements between partners. The only difference is in our case the rest of the partners can’t know about it. In order for this to be worth your while, I’ll put in two clauses. One that ensures you become CEO within six months of signing the agreement. As CEO, you’ll be guaranteed a bonus of up to a half a year’s salary, depending on the profits the company makes, regardless of your holding percentage. With this bonus, you will return my loan, so you can bet I shall vote for it whatsoever. The second clause will guarantee your shares will not be diluted for two more funding rounds, and if the situation requires that they do, the company will reimburse you with unissued stocks that match the dilution.”

“How are you going to do that?”

“This isn’t something I’ve made up. It’s a standard technique. Don’t worry—the next investors will actually be funding it without even knowing.” Reuben smiled contentedly. With the drug and alcohol in his system, he felt his dream was closer than ever. Here he was, a business man sitting on board a yacht, plotting and scheming and creating new coalitions to further his career and build his wealth. He felt there was a lot for him to learn from Mickey, and he was going to be the most devoted student ever until he became the master. In the next round, he might even use Mickey and toss him just like they’re planning to do to Eddie right now.

I just need him to stay alive, or else it’ll all go to hell
, he thought to himself and reached out a shaky hand to touch glasses with Mickey.

“Here’s to our new alliance,” said Mickey.

“To us,” said Reuben. “And of course to Eddie’s recovery,” he quickly added.

The next morning Reuben and Mickey met at Mickey’s lawyer’s office to draw up the contract between them. The following weeks were extremely stressful for Reuben. On the one hand, he wished and prayed for Eddie’s speedy recovery. Without him the company had no future and the schemes he made with Mickey would go to waste. On the other hand, he dreaded the moment Eddie would be well enough, and he would have to tell him Mickey was going to invest in the company and join in as partner. Two more weeks passed before the danger of infection was over and Eddie was allowed to have visitors. Ronit let Reuben see Eddie but made him promise not to burden him too much with details about the company’s problems. Until that day Reuben kept his interaction with Mickey low profile from Ronit as well since she expressed her aversion toward him several times. During his visit to the hospital, Reuben told Eddie about Mickey’s willingness to invest in the company. He didn’t dare bring up the possibility of investing himself. The conversation was difficult. Eddie did not want Mickey as a partner but realized he had no other options. He was partly reassured by the fact that Mickey would only get 40 percent of the company. The matter of the company value, according to which the size of the investment was to be determined, was still open. The conversation went on. At some point, Ronit came over to tell Reuben off for exhausting Eddie.

“He’s still not well. That’s enough for today.”

“But there are things that need to be closed with Mickey before he changes his mind.”

“Funny how this is the first time I’m hearing of all this.” She turned around and left the room angrily.

“Tell you what you do,” said Eddie, understanding they were out of options. There were no other investors in sight. “Take Shlomo with you to run negotiations with Mickey about the company value.”

“You don’t trust me to do it by myself?”

“I do, but Shlomo is an experienced financier, and even if I could come, I’d still take him with me.”

“Ok. If you think so, I’ll bring him along.”

Shlomo Weiss was recruited to the company a month before Eddie’s serum trial. The decision to bring on a full-time finance manager came about when Reuben and Eddie realized they weren’t making any progress by themselves at making good connections with funds and investors. The business plan they had built themselves was not financially convincing enough, and when their part-time bookkeeper took time off for maternity leave, they decided it was time to find a full-time finance director. They knew it was an expensive move that drove them closer to their financial limit, but they believed a good financial director would increase their chances of finding an investor.