Showing posts with label hedge funds. Show all posts
Showing posts with label hedge funds. Show all posts

25 February 2019

The Uses of Mystery

by Janice Law

Some time ago, Thomas Pluck devoted his last SleuthSayers blog to the proposition that the novel of social realism is alive and well in certain gritty segments of the mystery genre. By coincidence, I had just finished reading Jim Gauer’s wildly ambitious, overly long but brilliantly written Novel Explosives.  

Gauer uses mystery and thriller conventions to depict the unholy nexus of crime, finance, corporate exploitation and weaponry that have devastated Mexico, especially Ciudad Juarez and the unfortunate young women who labor in its maquiladoras.

He presents familiar elements – though often with a surreal twist. Thus we have the cold and cynical Shakespeare quoting crime boss. Plus his two minions, Ray and Eugene, who are on a mission to kill the man we know first as The Poet and later as Douchebag, the erstwhile unsuspecting financial manipulator for the drug ring.

We have a possibly helpful, possibly complicit beauty in Guanajuato, Mexico, and her opposite number, who may or may not be on the side of the angels, up in El Paso. We have enough heavy weaponry to outfit any number of military thrillers and a vet with very serious PTS – but only on odd numbered days. We have police overkill and atrocities on every side and more than this reader could understand about financial chicanery.

The Poet's map was less helpful 
All this is immensely plausible, since Gauer, who is a poet, also worked for the military before making his fortune as a hedge fund executive and a venture capitalist. He is also clearly a man with a big interest in modern philosophy, human physiology, Aztec poetry and many other more abstruse topics. Your enjoyment of the novel probably depends on your own similar tastes.

But from the point of view of mystery/ thriller writers, Novel Explosives – and I should mention the ‘novel’ of the title refers to innovative weapons – is a striking example of the uses of our favorite conventions and an illustration of the fact that every generation only has so many stories.

The 18th century loved tales of female virtue imperiled but defended. The 19th enjoyed the pursuit of love and marriage then switched to the dangers of want and misery. Our side of the Atlantic loved Horatio Alger stories and then the still-popular immigrant experience. In mysteries, we, like Mr. Gauer, are fond of flawed heroes struggling to do right in a corrupt world.  Ray, his hitman, is the most morally alert of his characters, and it will not spoil anyone’s enjoyment of the book to reveal that he has nearly superhuman endurance as well as  exceptional military skills.

The creepy Mr. Big, a staple of popular fiction in print and on screen, also makes an appearance in the predatory drug lord Mr. Gomez, who represents the criminal component of  what the author sees as a corrupting and disastrous web. Drug use (and the War it) on feed profits to the violent Mexican cartels, which in turn corrupt the Mexican police and military. Criminal financiers launder drug profits and outright criminals funnel south the military grade weapons both cops and crooks need.

Exploited on every side are the unfortunate workers of the maquiladoras, often peasants forced off their land by the changes wrought by NAFTA. The workers are heavily female, very young, low paid, exploited, and at risk of rape, torture and murder. Their male counterparts, less desirable to the corporate types running the factories, opt for risky but lucrative work in the drug trade. Altogether crime, corruption and violence make Ciudad Juarez one of the anterooms of Hell.

Over all looms Saint Death 
Where Gauer departs from the mystery/thriller format is in his treatment. The pages’ long paragraphs, the dissertations on everything from Native American medical techniques to 20th century Portuguese poetry, and enough digressions to rival Tristram Shandy take Novel Explosives into more literary territory. Add a strong strain of surreal fantasy and you are in Thomas Pynchon’s neighborhood not Michael Connolly’s.

But despite the literary fireworks, the bones of the thing will be familiar to Sleuthsayers fans: a amnesiac hero pursued by professional hitmen, both of whom have a conscience. A brutal crime lord who never dirties his hands, corrupt financial men behaving like Masters of the Universe, police and military overkill, and the deaths of innocents.

The treatment in Novel Explosives is surreal, fanciful and philosophical, but the structure owes much to popular, even pulp, fiction, illustrating once again the almost endless flexibility of the genre.

For an interesting interview with Jim Gauer – and details of doing research in Juarez –listen in to Eye 94 out of Chicago at Jim Gauer on Eye 94 .

06 December 2018

A Corporate Christmas Carol

by Eve Fisher

It's December, and we've had a lot of news to deal with over the last year, so some things have just gone under the radar.  But it's time to let some of those rats out of the woodwork, and the current scene with nursing homes around the country - including 19 of them here in South Dakota - has enough rats to kill every cat in the country.  That and make Ebenezer Scrooge wonder why he ever listened to the Ghost of Christmas Future when there was money to be made out of starving old folks.

Now I'll admit, I'm fascinated by nursing homes.  My parents lived in a massive retirement center complex in Knoxville, TN, that allowed you to buy a house, then a town home, then an apartment, get assisted living, and then go to their nursing home premises. For ten years, I spent my vacation visiting them and living on-site, and I always found it somewhere between fascinating and scary as hell.  And yes, I've set a few stories in that milieu.  A lot can happen in retirement centers and nursing homes.  In fact, the same things happen there as happen among any other group of people.  Just cause you're old doesn't mean you haven't stopped working on your life, for good or ill.  But it's better when the crazy stuff happens at the instigation of the residents, and not come down from on high.

Back in May, 19 nursing home facilities were going bust in South Dakota, thanks to their (mis)management by Skyline Healthcare of New Jersey. Skyline had gone on a nursing home buying binge between 2015-17:  110 nursing homes in six states at bargain prices, mostly from Golden Living, a large national chain that was sued by the Pennsylvania attorney general in 2015 for providing poor care. Golden Living wanted to lease out a lot of its nursing homes, and Skyline gladly took them over. 

This is the picture you get when you Google
Skyline Healthcare
Now here's one of the problems:  Skyline Healthcare was and isn't a large corporation with the kind of bucks to run 110+ nursing homes. Instead, it's owned by a single family, the Schwartzes (Joseph, Rosie, Michael and Louis), and nursing home industry watchers used to joke about the fact that their office was above a pizza joint in Wood-Ridge, N.J.  

But it wasn't so funny when Skyline quit paying the bills to, among others, nursing home vendor Health Care Services Group in Pennsylvania for housekeeping, laundry and dining and nutrition services. Then they stopped paying in Massachusetts, Florida, Arkansas, Kansas, and most lately, South Dakota. (Kansas City News
According to the complaint argued by Pierre attorney Margo Northrup, Skyline did not pay bills for the facilities, including from vendors and employee salaries. More seriously, “there are hundreds of patients currently residing at the (nursing facilities) who receive varying levels of care and whose health and safety have been put directly at risk by Defendants’ many defaults,” according to the complaint. On April 26, Skyline, the defendants, notified the state health department “that they no longer had sufficient funds to purchase food for the patients.” (Capital Journal)
The former Golden Living Nursing Home in Madison, SD
The result is all the Skyline nursing homes were put in receivership, and most of them are going to close. Where do the residents go? God only knows.

What the hell was the deal? Well, apparently Skyline Healthcare was a classic example of buy, gut, and sell - or outright abandon. And none of the sellers - Golden Living, among them, apparently bothered to check the Better Business Bureau ratings (D+, and God only knows how they got that) or their employee reviews (HERE).   So Skyline Healthcare bought the nursing homes using borrowed money, hosed up all the money in the nursing homes' accounts to repay their debt (and pay themselves, and their investors, of course), and then dumped the nursing homes.  And leaving the residents holding nothing but eviction notes.

And - WARNING, WARNING, WARNING! - this appears to be a (relatively) new trend in elderly care. Witness this article from The Washington Post. Back in 2011, The Carlyle Group bought the ManorCare nursing-home chain - the second-largest nursing-home chain in the United States. The financial deal "extracted $1.3 billion from the [ManorCare] company for investors... Shortly after the maneuver, the company announced hundreds of layoffs. In a little over a year, some nursing homes were not making enough to pay rent. Over the next several years, cost-cutting programs followed, according to financial statements obtained by The Post."

Among those costs were staff, utilities, rent, and patient care:
"The number of health-code violations found at the chain each year rose 26 percent between 2013 and 2017, according to a Post review of 230 of the chain’s retirement homes. Over that period, the yearly number of health-code violations at company nursing homes rose from 1,584 to almost 2,000. The number of citations increased for, among other things, neither preventing nor treating bed sores; medication errors; not providing proper care for people who need special services such as injections, colostomies and prostheses; and not assisting patients with eating and personal hygiene." (The Washington Post


The Carlyle Group is disputing all of these claims.  But the result was bankruptcy and sale, this time to non-profit ProMedica Health.

The Washington Post points out that private-equity firms have been moving - like sharks - into businesses serving some of the nation’s poorest or most vulnerable people, including payday lenders, nursing homes, bail bond providers, low-income homes for rental and prison phone services.

"Ludovic Phalippou, a professor at Oxford who wrote the textbook “Private Equity Laid Bare,” says it is a question of whether private-equity methods are appropriate in all fields. He has praised the ability of private equity to streamline companies but he has also described the firms’ approach as “capitalism on steroids.” (my emphasis)  He said, for example, that while private-equity ownership of nursing homes is accepted in the United States, people in some other countries would be “aghast” at the idea. “People will wonder whether this pure capitalism is appropriate in nursing homes,” Phalippou said. “The health and welfare of the old people who live there depend on them.” (The Washington Post)

But who cares about health and welfare?  That's so oldfashioned!  From The New Yorker:
Ron Shaich, founder of Panera Bread
"Wall Street has embraced the idea that companies exist solely to serve the holders of their stock. Under this way of thinking, managers of companies should focus their actions on driving short-term value for their shareholders, and should pay far less (or no) regard to other constituents who may have a stake in the business, such as employees, customers, or members of the community. [Ron] Shaich... believes that the fixation on short-term profits is jeopardizing the future of American business, and creating social instability that has contributed to our current state of political polarization."

And adding to the fears and worries of a lot of elderly people in nursing homes who literally have nowhere else to go.  Up here in South Dakota, there were 111 nursing homes, so closing 19 of them is taking away 17% of all the nursing homes in this state.  There aren't enough beds left in this state to take all the residents.  Where is Granny going to go for Christmas, this year, anyway?   Does anybody care?