Chapter 69: Chapter 69 Cooperation With The Austrians
At the headquarters of the Austrian Gang, Hardy and Bill met with Fred. Fred shook hands with both of them, feeling quite sentimental.
Before, Bill was just one of his underlings, a minor leader who didn't rank high. Hardy had only temporarily joined the Austrian Gang. Unexpectedly, within a few months, their statuses had rapidly risen. They had seized control of the Spanish gang's territory and business and were now on equal footing with him.
"Hardy, Bill, I didn't expect you to develop so fast. You quietly took over the Spanish gang's territory and business and established your own gang."
"We are all Mr. Sigel's subordinates and we are a family." Hardy smiled.
Fred smiled, "Yes, we are indeed a family. From now on, we will help each other and deal with the provocations of the Irish and Mexicans together."
"You called earlier to discuss something with me. What is it?" Fred asked.
The three of them sat down.
Hardy began, "We control three nightclubs and thirty eight bars. Currently, all our liquor is supplied from the Austrian Gang warehouse. We should be considered major clients now. I hope Boss Fred can offer us a discount."
Liquor supply was no small matter. If Bill and his men started purchasing from the Austrian Gang, it would essentially double the Gang's liquor sales. For the Austrian gang, this was definitely a good thing.
Fred thought for a moment. "I can offer you a 10% discount. That's already quite favorable."
"Deal," Hardy agreed without hesitation.
A 10% reduction was acceptable to Hardy. The Red Bill gang would make some money from that difference, and today, Hardy had come not just to discuss liquor but for a bigger business deal.
"Boss Fred, you must know about the Spanish gang's former casino, right?" Hardy asked.
"You mean McKinsey Club?" Fred asked.
"Yes, that casino was originally managed well by Dani. After we robbed it, it hasn't reopened yet. In reality, it's been under renovation. Now it's completely renovated, even more splendid than before. I'm wondering if Boss Fred would be interested in taking over this business," Hardy said.
Fred was surprised.
"You want to hand over the casino business to me. Why don't you want to run it yourselves?"
Fred knew that the casino Dani had managed was quite popular, located in Hollywood, attracting many wealthy celebrities. It was considered an upscale establishment in Los Angeles, earning 200,000 to $300,000 annually.
He didn't understand why Hardy wouldn't run it himself and instead wanted to transfer it to him.
Moreover, letting the Austrian Gang operate a casino in their territory was akin to allowing the Gang's influence deep into their own territory, something few gangs could tolerate.
Hardy shrugged helplessly.
"I don't have suitable personnel to run a casino."
Running a casino required not only money but also capable individuals to manage it—experts proficient in gambling. It wouldn't be easy to start from scratch.
The Austrian Gang was different, they currently operated several underground casinos and had enough manpower.
"How do you plan to transfer this business?" Fred asked.
Hardy had thought this through.
"The McKinsey Club has a lease for another three years. Renovation costs have exceeded $150,000. If Boss Fred takes over entirely, how about giving me $200,000 for this piece?"
Fred thought $200,000 was not cheap but acceptable.
"Plus, there's an operating fee. If the Austrian Gang enters our territory for business, paying a portion of the operating fee would be reasonable. However, I'm not sure how much it should be," Hardy pondered.
Fred wasn't surprised by the operating fee. Previously, the Spanish gang sold cocaine in the Austrian's territory and had to pay an operating fee, which wasn't low, roughly a third of their income.
Could he demand $100,000 a year if that casino earned two to three hundred thousand annually?
Hardy seemed to suddenly think of something. He looked at Fred and said, somewhat enlightened, "Boss Fred, recently Bill and the others started a small business, placing slot machines and punching machines in taverns and convenience stores."
"How about this, we exchange operating rights. I won't charge the casino's operating fee, and at the same time, the Austrian gang will allow Bill's gang to place slot machines and punching machines in your territory. What do you think?"
Fred had no concept of slot machines and punching machines. To him, they were just small businesses.
Betting a few cents each time, how much money could they make from that?
The only concern he had was that by doing so, Hardy's influence would enter the Austrian Gang's territory. However, he soon relaxed.
Hadn't he also extended his influence into Red Bill's territory?
Besides, both were Mr. Sigel's assets.
The Austrian Gang's liquor was sold all over Bill's territory, so the two factions were already entwined.
"Alright, I agree to exchange operating rights," Fred agreed immediately.
The agreement was reached.
The Austrian Gang would operate the casino in Bill's territory, and Bill's gang would place slot machines and punching machines in the Austrian Gang's territory, with neither side paying territory fees.
That afternoon, Fred accompanied by several henchmen, visited McKinsey Club with Bill. Fred was very pleased with the renovations here, which were much more luxurious than the three underground casinos he managed. They were sure to attract high end clients.
When Bill left, he carried a briefcase containing $200,000 in cash.
Of course, This $200,000 belonged to Boss Hardy and had nothing to do with Bill.
But he also gained greatly, acquiring the operating rights for slot machines and punching machines in the Austrian's territory. From Bill's perspective, this business would be far more profitable than running a casino.
Looking at the cash on the table, Hardy calculated his assets.
The $300,000 check was still in his hands, unconverted into cash, as it was legitimate funds that didn't need laundering and could be used for legal transactions.
Now with an additional $200,000 in cash, he planned to give $100,000 to the security company as operating capital and another $100,000 to Henry and Matthew as a bonus for the previous operation.
He still had the original $100,000 he earned.
In other words, he had access to $400,000 in cash.
He also had the security company, film company, and talent agency.
Thinking of the film company and talent agency, he suddenly remembered that Dani seemed to have left him an inheritance.
Dani also had the adult Film Company and three talent agencies.
He found the documents in a drawer and examined them. All the legal entities were registered under Dani's name. How could he transfer these assets to himself?
Hardy thought of Simon.
He was Dani's advisor and a financial accountant, so he must know these things. He called out to the door and a subordinate came in.
"Go to the loan company and call Simon over. Tell him that I have something to ask him."
Hardy looked at the documents in his hand and thought to himself that he should find a good financial accountant as soon as possible. In the future, as his business will increase, someone must help him in this area.
There are so many gang bosses, but few of them have been sentenced for criminal cases. Instead, they have been imprisoned for tax evasion.
But it is very difficult to find a qualified and trustworthy economic manager, because your economist has almost all your secrets.
When Simon received the notice that Mr. Hardy was looking for him, he felt extremely uneasy and his body was slightly stooped when he stood in front of Hardy.
"Hello, Mr. Hardy."
Hardy pushed the documents for the film company and talent agencies toward Simon. "Simon, Dani owns a significant stake in these companies. Now that Dani is dead, is there a way to retrieve these assets?"
Simon looked at the documents, very familiar with them.
Because he had set them up for Dani back then.
"Mr. Hardy, obtaining ownership is not easy, involving legal regulations and economic treaties. However, obtaining the assets themselves is not difficult," Simon replied.
Hardy thought, "Okay, I want the assets how do we do it?"
"For example, these talent agencies lease their premises, which are not valuable. The most valuable assets are the contracts with those actors. We can transfer these actor contracts at a low price to our own company."
"As for the price, it could be $100 or even $1."
"Also, with the film company, Dani was a major shareholder, while the person in charge there is a minor shareholder, holding a 12% stake. I know that person. Originally just a small director, he started his own film studio, which caught Dani's eye and led to the establishment of that film company."
"We can package the film company's assets and sell them to another company. As for the price, we can negotiate. I believe as long as we let the minority shareholder get his share back, he won't interfere."
"Then these companies will be left with empty shells that we can discard."
Hardy felt Simon's proposal was excellent.
This approach might not work for others, but they were a Gang, and adding some coercive tactics would naturally make those people obedient.
Hardy handed over the agreements to Simon. "You handle this matter. Help Bill retrieve his uncle's assets."
Simon took them quickly.
"Very well, Mr. Hardy. I'll take care of this matter."
Shortly after Simon left, Lancer, the head of the security company, entered Hardy's office with a somewhat helpless expression.
"Today, I met with two bank managers again, but it was unsuccessful. Our security company has just been established, with no reputation. They simply aren't willing to cooperate."
The security company was transitioning away from the mafia into legitimate operations. Hardy had tasked Lancer with running daily operations, during which Lancer and his team had visited various banks, hoping to find clients.
Banks were the best clients for a security company.
According to statistics, there were over 14,000 financial institutions in the entire United States. Los Angeles was the second largest city in the country, with over 160 banks. There were countless branches and offices, and as long as HD Security found a few major banks to partner with, they would be set.
However, these banks had either signed contracts with other companies or had their own security forces. In addition, HD Security was newly established and unknown, and despite Lancer's efforts to approach dozens of banks, none were willing to cooperate.
Hardy smiled indifferently.
"There's no rush. We'll find clients eventually. We're a small company, so as long as we find two partners to work with, we can survive and then expand slowly."
Hardy planned to heavily develop legitimate business in the future and had a comprehensive plan for the future. HD Security held a significant position in his economic layout, and even if it didn't make money, he would support it.
"Lancer, tomorrow, I plan to go out." Hardy said.
"Where to?"
"To New Mexico, to see Ava."