The Timeshare Beat: Jerry Sikes; With Regard to Ego II

“Big egos are big shields for lots of empty space.” - Diana Black -

Reporter Wry was called early on a Tuesday morning to meet with the managing editor of his newspaper. Upon arriving at the editor’s office, Marybeth, the administrative assistant said: “Good Morning Jacob, go on in he is expecting you.” Wry did just that and was greeted by the editor with: “Grab a cup of coffee and take a seat.” Then the editor began to shuffle some of the few papers on his desk. “Do you remember doing this piece on VIVID, Inc., and its CEO Dr. Ego?”

Wry responded: “Yes sir, That was when Dr. Ihave Big Ego announced that he was taking VIVID (Very Important Vacation Interval Developer) public on the basis of some new timeshare concept that was supposed to provide extraordinary profits to those who were wise enough to purchase the IPO’s.” “Good” said the editor, “Early this morning Associated Press indicated that VIVID and Dr. Ego are in serious trouble because they supposedly ‘cooked’ the books to entice investors to purchase those IPO’s.” “I want you go to VIVID’s Really Obnoxious Resort on Glorious Beach where a press conference is to be held at 10:30 this morning.” “Right boss” said Wry “I’m already on my way!” On his way out Wry stopped by his office and picked up his file on VIVID and Ego, grabbed Harry, the photographer, handed him the keys to the company van and said: “Take us out to Glorious Beach, and hurry!”

As Harry sped through the city, Wry began to refresh his memory on both VIVID and Dr. Ego. At the time he had wondered if the doctors background as a phone solicitor, lead generator, swampland speculator, weed importer, repo man, and timeshare resale appraiser qualified him for the position of chief executive of a firm such as VIVID. While Dr. Ego seemed perfectly qualified to be the front man for questionable IPO’s, he seemed lacking in the fundamental management skills necessary to achieve the growth that VIVID had been promoting. Increasing sales of a timeshare product from 2000 units to 20,000 seemed an impossible task, coupled with that, Wry could not remember the specific points that had been promoted. He did however remember it was these points that were the pony on which the IPO bet was placed.

Wry was just finishing the file as Harry pulled up to the valet parking/OPC booth at the Really Obnoxious Resort where the attendant gave Harry both a parking stub that was also an entrance for the current sweepstakes. The agent told him he could retrieve the company van once he had completed the 60-minute complimentary tour of the new resort facility. While Harry was getting the pitch from the valet person, Wry had learned from the doorman that the news conference was being held in the Marvelous Ballroom, which was located in the Promenade level (basement).

“Harry, grab your camera and let’s go” Wry shouted: “We’re already late!” With Harry in tow, Wry dashed down the stairs and into the ballroom only to find that most of the local print, radio and TV media personnel had already staked out the best spots directly in front of the platform from which the presentations were to be made. After some pushing and shoving Wry was able to get his tape recorder attached to the podium just as the VIVID entourage entered from the doorway on the left. One of the underlings proceeded to the podium and said: “Ladies and gentlemen, please be seated. Dr. Ego will be here shortly and he will make a brief statement and then answer any questions you may have.” After 15-minutes, Dr. Ego was escorted to the podium.

“I will begin by reading a statement prepared by the attorney’s for VIVID, Inc.” Dr. Ego stated.

At approximately 4:00 PM yesterday VIVID, Inc., and Dr. IBE, LLC filed for protection under the US Bankruptcy Code. This Chapter 11 filing will allow VIVID to reorganize under the protection of the court. If the reorganization is completed successfully and approved by the court the company may resume its business again. This action will, in effect, provide protection for the firm from its creditors and its minority shareholders while it attempts to return to its prior financial stability. The activities by Bather Danderson & Co, CPA/PC on behalf of VIVID have been suspended until such time as another independent firm can verify the reported income and profit totals for the first half of the year. Any speculation that such incomes and profits were overstated in order to entice investors is currently unfounded, likewise any speculation concerning Dr. IBE, LLC or its principals.

Dr. Ego then stated: “Joining me on the dais at this time are Mr. Very Dull VIVID’s Director of Public Relations, Notso Sharp, Esq., its corporate council and Theo Book-Keeper representing Bather Danderson & Co. Mr. Dull will now assume control and direct the activities of this press conference as we begin to take a few questions from the members of the media.”

Among the raised hands and shouts of those wanting to pose questions Mr. Dull spotted a familiar face. “Jacob Wry” he said: “Do you have a question?” Wry responded: “Yes, this question is for Dr. Ego”. “Sir, during our interview several months ago you indicated that you were going to repackage vacation ownership, modify the marketing approach, create alternative uses of value, promote conversions, reacquire the real property at the resorts and gain control of the resale market. What went wrong with the VIVID plan?”

“Jacob, Dr. Ego replied: I’m not sure that I can answer that question. Nothing actually went wrong! We did repackage the product and change our marketing approach. We anticipated that many more of our owners would actually see the advantage of the alternative use options and at this point convert from the old way. They did not and thus we did not meet expectations. This meant that the acquisition of our resort real property required hard dollars, dollars that were not anticipated.”

“A follow-up question Doctor, if you would? Wry asked: Is it true that VIVID actually sold much of the original resort real property at a deflated price to Dr. IBE, LLC prior to going public and then VIVID actually paid a premium for those it recently purchased?”

“I’ll respond to that question, indicated attorney Sharp: “Prior to going public, VIVID’s cash position was somewhat strained and it did sell off some of its real property assets at a discount. It is true that Dr. IBE, LLC did purchase some of those assets. VIVID’s cash position was enhanced by the income generated through the initial sale of its stock and some of those funds were used to repurchase resort real property from Dr. IBE, LLC. That this business transaction rendered a profit to Dr. IBE, LLC is not at all unusual.”

With that raised hands and shouts began again and Mr. Dull called on the anchor from the local NBC station KPEE-TV. Missy Prissy. “I would like to direct my question to the representative from Bather Danderson & Co.” said Ms. Prissy: “ Mr. Book-Keeper, Is there any truth to the reports which been circulating that when DR. Ego’s repackaged product did not achieve projections, your CPA firm manipulated the income and profits of VIVID, Inc., in order to boost the sale of the IPO?”

“Ms. Prissy, responded Book-Keeper: “Just what is the source of the “reports” to which you make reference? Is it the policy of KPEE-TV to make unfounded allegations? On behalf of my firm and all the hundreds of my fellow associates, I resent the implication that you are making! There is not one shred of evidence to substantiate your claim and I will not lower myself to your level.”

“Mr. Dull, Mr. Dull, the shouts rang out again and again.” Dull pointed to Sam Eger the reporter from the Daily Star. “Sam, do you have a question?” “Yes, for Dr. Ego please. Doctor, my paper has documentation that you received a million dollar bonus on the basis of the sale of the VIVID IPO’s and it is now coming to light that the CPA reports, on which the achievements were based, may have been overstated. It that proves to be fact, will you return the bonus to VIVID?”

Dr. Ego responded: “I did not produce the reports and the achievements to which you make reference were not only criteria for the bonus for the VIVID. Inc., CEO. I assure you that the opinion of the media will not be a determining factor in the bonus I received or in any future bonuses where I am concerned. This filing for protection is just a minor setback and I fully expect that VIVID will very quickly get back on track and begin to achieve the returns on investment that was expected by our investors.”

Final Thought

VIVID, Inc., and Dr. Ego are figments of my imagination, however, one need only listen to the evening news on their favorite radio station, watch and listen to the network news on any of the TV channels and/or pickup any of the (local or national) newspapers to realize where my inspiration came from. Greed, stupidity and enormous egos have been the driving force behind those firms that have dominated our nations headlines. Our industry is not exempt from those kinds of shenanigans and some of the major firms may be heading for a fall. Generally the families that purchased their vacation from such firms or the investors who purchased their stocks are the ones who actually incur loss. The big egos usually live to scam another day. Is this going to always be the legacy of timesharing?