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Chapter 199: Organizing a Group to Make Money is Called a Consortium
Luke, a well-known director, found himself at the center of a major scandal that immediately attracted significant attention. The incident involved Gina, who publicly complained about being threatened and assaulted during filming. This led to widespread media coverage and major newspapers reporting the story.
Gina had been coerced into performing degrading acts on set, and when she protested, she was physically attacked. The situation escalated when she was threatened again in her hotel room. She stopped the film production, demanding compensation for the damages and risking further confrontation. Ultimately, she endured four separate incidents of assault.
The report of these events created immense pressure on Luke. With only a third of his film completed, Columbia Pictures terminated his contract and sought to replace him with other directors.
Columbia Pictures faced a difficult decision. The Actors' Union had sent a letter demanding a thorough investigation into the allegations. They warned that without compliance, they would mobilize all members to boycott Columbia Pictures, which put the company in a tough position.
Admitting fault would damage their reputation, while denying the allegations would likely lead to further trouble from the union. The company initially sought to delay the issue, but the next day, a group of demonstrators gathered outside Columbia Pictures, protesting the company's lack of management and responsibility.
An ABC TV reporter filmed the protest, and the news spread nationwide. The public outcry and media reports put further strain on Columbia Pictures, leading to a sharp drop in their stock price. Shareholders were outraged and demanded immediate action from the company's president.
The president of Columbia Pictures contacted Hardy, seeking to resolve the issue. "Mr. Hardy, Luke is just a contracted director at Columbia. We have terminated his contract unilaterally, hoping this will make the protesters withdraw."
Hardy responded, "I've heard from our lawyer that you invested in the movie and that the staff involved were all from Columbia. The lawyer faced significant resistance while collecting evidence from the crew."
The accusations against Luke included assault and deliberate misconduct on set. Although Luke denied these claims, the presence of numerous witnesses made the evidence compelling.
The president of Columbia Pictures agreed to instruct the crew to cooperate with the lawyer in gathering evidence. Sacrificing a director seemed a small price to pay for the company's benefit.
Two days later, evidence collection confirmed that the script lacked explicit content initially, but Luke had imposed a scene with degrading elements, including an offensive shot involving Gina. Gina's protests were met with physical violence, witnessed by the entire crew.
With Columbia's cooperation, the union withdrew the protesters, and Columbia Pictures was able to recover from the crisis.
Andy reported to Hardy that he had shorted Columbia Pictures' stock and made a profit of 1.2 million dollars. The impact of the scandal continued, with the focus shifting to the lack of direct evidence for the hotel room coercion. Nonetheless, the confirmed abuse and Luke's damaged reputation would make it difficult for him to find future work.
The incident served as a warning to others in the industry, reinforcing Hardy's influence and reputation among actors and media.
With union matters temporarily settled, Hardy turned his attention to his own affairs. After over two months of preparation, Andy and his team had organized the information and procedures for forming the Hardy Group.
"Boss, according to our previous discussions, the Hardy Group will include eight companies: HD Security, HD Films, HD Brokers, Playboy Magazine, HD Toy Factory, HD Airlines, Global Times, and ABC TV," Andy reported.
"As for Estee Lauder, Walsh Mining Company, MEBO TV Factory, Rocky Mountain Mineral Water Factory, the auction company, and two wineries, these will remain personal investments and not be included in the group management. I plan to establish a 'Personal Asset Management Company' to handle these assets."
"Additionally, there are investment projects such as the motorcycle factory, clothing factory, and chocolate factory shares. We'll form an 'Investment Company' to manage these investments."
"The Hardy Hotel will continue to be managed separately due to its unique nature."
"My Andy Investment Financial Management Company and Baker McKenzie Law Firm, where you own shares but do not manage, will also be included in personal investment management."
In this way, Hardy's business interests were clearly organized.
"Boss, I've done a preliminary calculation. The total assets of Hardy Group amount to 150 million dollars, personal assets to 50 million, and Hardy Hotel to 50 million, totaling over 250 million dollars. Listing certain industries, such as casinos or ABC TV, could significantly increase your net worth."
Hardy shook his head. "I don't need money right now, and I'm not interested in pursuing market value for its own sake. Remember, Hardy Group's core assets will never be listed. The listed assets are only for raising funds and can be discarded at any time."
Andy nodded in understanding.
"Boss, we plan to register the group in Las Vegas. Nevada has low taxes and no personal income tax. Setting up a headquarters there would be very advantageous. If you agree, I'll submit the application to the Las Vegas government."
Nevada, with its favorable investment environment, including low business taxes and minimal filing requirements, is an attractive location. California's 20% personal income tax is a stark contrast.
"Go ahead with the application. By the way, have you found a suitable headquarters building?" Hardy asked.
"I have a few options and brought the information for you to review. If none are suitable, I can find more options," Andy replied, handing Hardy the information.
Los Angeles, being within a major seismic zone, has limited high-rise buildings. Hardy chose a ten-floor building in downtown Los Angeles to serve as the interim headquarters for Hardy Group, with a prominent neon sign on top. He preferred renting over buying due to his personal dislike for the building style.
"Later, we'll build a true Hardy Group headquarters in Las Vegas. I have a plot of land there, but that's something we can plan for in ten years," Hardy said.
After making these decisions, Hardy smiled at Andy. "From now on, you will officially take the position of President of Hardy Group. You are the most suitable person for the job."
"Thank you for your trust, boss. I will manage the company well," Andy replied.
"Well, form the management team for Hardy Group. You're more capable in that regard than I am," Hardy said with a smile, patting Andy on the shoulder.
Having not seen Taylor for a while, Hardy called her to go out and have some fun. Taylor was excited and quickly prepared, with Sara helping her choose clothes.
Taylor opted for a long skirt and a loose cashmere sweater, accessorized with a small woolen hat. Hardy's car arrived, and Taylor happily got in. Sara watched her daughter depart and noticed her kissing Hardy in the car, feeling a mix of emotions.
Sara had initially hoped for her daughter to marry a wealthy man, but Hardy had exceeded all expectations. Now, Hardy's power, money, and status seemed beyond her imagination.
"I've missed you, Mr. Hardy," Taylor said playfully, holding Hardy's arm.
"How's the script coming along? Filming for 'Beauty and the Beast' starts in a month, right?" Hardy asked with a smile.
"The script is manageable, but there's a singing scene I want to perform myself, so I've hired a vocal coach to help me," Taylor replied.
"If it doesn't work out, you can always dub it," Hardy suggested.
"No, I want to do it myself," Taylor insisted.
They first visited the mall, bought some items, and then went to Hardy's manor, where they enjoyed a relaxed time together. Taylor returned home late that night.
Sara observed her daughter's behavior closely, relieved to see nothing unusual.
The next day, Hardy received a call from Director Nolan, who asked him to come and view the finished film. When Hardy arrived, the main actors, Heidi Ramah and Lee Gen, as well as the HD Pictures executives, were present.
The movie, a pure urban film with minimal special effects, was showcased. When the theme song "Human Ghost Love Is Not Over" played, it made a strong impression. Hardy credited the song, performed by Bill Medley and Bobby Hetfield from HD Records, as a key factor in the film's success.
After watching the film, Hardy applauded, and others joined in. "The performances by Heidi and Lee Gen were outstanding. Director Nolan's skills are impressive. I'm confident this movie will be a hit."
Everyone was pleased with Hardy's comments. Hardy instructed Edward to create a five-minute promotional video for ABC TV and to ensure the theme song was broadcast. He also planned to send a record to radio stations for additional promotion.
For distribution, Hardy decided to contact Meyer. "Mr. Meyer, the movie 'Human Ghost Is Coming' is ready for release. Can MGM assist with distribution?"
"Of course, I'll inform the distribution department to get in touch with HD Pictures," Meyer replied.
Meyer also mentioned, "Regarding the casino project, we've added two more investors. You'll meet with them soon. The partners include Bank of America, Mersey Pharmaceuticals, Croke Agricultural Products Company, Pepsi-Cola Company, and Lockheed Aircraft Manufacturing Company."
Hardy realized these companies were part of the California Consortium—a group organized to make money. He wondered if they had other motives.
"Meeting them will be beneficial," Hardy said, noting the prominent involvement of these major companies.