The world of big business and corporate finance is a shady place. When profits and personal gain are the primary motivations for success, then inevitably a company will attract some questionable characters. Greedy, sharky narcissists and grifters sometimes claw their way to the top. Slick deal makers invade the boardrooms and moral guardrails get flushed down the toilet. Our culture of economics celebrates those who accumulate the most wealth regardless of their character or usefulness to society as a whole. Organized crime syndicates are little more than the shadow side of big business. It is no surprise that such an environment would attract some pathological predators. It is also no surprise that some libertarian lunatics will lionize these scumbags for being an exotic breed of amoral heroes. Vesco by Arthur Herzog gives a biographical account of one such sleazy businessman who eventually ended up on the lam.
Robert Vesco had an unimpressive childhood. His family were part of the Midwestern blue collar class, living without frills or fortune. After getting bored with mundane factory work, Vesco got into the habit of buying businesses. He developed a talent for buying failing businesses and turning them around to be either resold or else used to buy other businesses. He built up a network of them and then set his sights higher, using the profits to buy his way onto the board of the Investors Overseas Service or IOS. This high-finance corporation was already being run by some shady people and had actually been banned from doing business in America. So Vesco tried to take over IOS and along the way, stashed investors’ money in offshore bank accounts and shell companies in the Caribbean and Central America. The American SEC caught on to what he was doing and tried to take him down. After a joke of a trial in which the government struggled to define what crime Vesco had committed, let along prove their case, the rogue businessman had already become one of the richest men in the world. Instead of risking more harassment from the government, Vesco fled the country, spending most of his time making banking and business deals in the Bahamas and then making a semi-permanent move to Costa Rica.
That much of the biography is interesting if you can manage to extract so much meaning from Herzog’s text. Unfortunately, there are three identifiable problems that muddy up the narrative waters. One is that a lot of space is taken up with details of banking and corporate business management. There is nothing inherently wrong with that and it would be expected in a book about white collar crime. The problem is that it is alienating to readers who are not familiar with these business practices which can be assumed to be most people. Herzog doesn’t explain this side of the story sufficiently enough for those of us who have never been inside a corporate boardroom. Another problem is that Robert Vesco disappears for a long stretch from his own biography. Herzog goes into too much detail about the lifestyles of the IOS managers, especially that of Bernard Cornfeld who dominates such a long portion of the writing that you might forget who this is meant to be a biography of. And that is not the only time that happens in this book. The third major error is that the author writes about how Vesco has such a charming and attractive personality, but this never comes across in the writing. The book actually lacks sufficient detail to drive this point home. Herzog could have included more personal testimony or anecdotes from people who knew Vesco to make him come to life more as the central figure of the story rather than being so one dimensional.
Robert Vesco settled in Costa Rica after the American government put pressure on the Bahamas to extradite him. There he made friends with the president Jose Figeres Ferrer. Vesco was the wealthiest man in that tiny, impoverished nation and Figeres urged him to invest money in the national infrastructure. Subsequent presidents warmed up less to Vesco but tolerated his presence as long as he didn’t meddle with the national media. Public opinion in Costa Rica was divided and the presence of Vesco was a prominent news item for several years. Despite living lavishly, Vesco’s fortunes were growing smaller and he began investing in more dangerous business ventures like drug smuggling and arms running to keep himself afloat. He got too hot for the Costa Ricans to handle, so after secretly bouncing around from Antigua and Panama to Nicaragua, he eventually settled in Cuba. It can be said that the communists allowed him to stay in Havana simply to annoy the American government, but they probably wanted some of his money and access to his business contacts as well. The sections about Vesco’s life in exile are somewhat interesting, but again, he disappears from the story for unnecessarily long periods including passages about an illegal arms deal with Libya in which Vesco only had a tenuous connection.
As far as the writing quality goes, the best part, meaning the clearest and easiest to follow, comes in the final chapter when Herzog goes to Cuba to interview Robert Vesco and show him a transcript of his biography. Actually nothing especially interesting happens there and the chapter does almost nothing to add to the bigger picture of who Vesco really was, but it is the best written part of the whole book. This is important because Herzog wrote about what he saw in Cuba. The rest of the book lacks that kind of vision. Herzog can’t be faulted for not being in the room with Vesco throughout his entire life, but the author never actually sees what he writes about. There are lots of listed details, but he never actually puts you, as a reader, right into the action the way a good writer does. Reading this book has the feel of trying to follow a TV show while sitting in a separate room and listening to it through the wall without any visual input.
Robert Vesco was a man who got into too much too soon. He obviously had a natural talent for business, but he moved too fast for his own good. He didn’t learn the lesson of Icarus whose wings made of wax melted when he flew too close to the sun. If Vesco hadn’t been so reckless he might have survived longer in the world of corporations and banks. Maybe he would have even gotten away with squirreling some money in offshore bank accounts. White collar crime is just as common as kids stealing candy from the supermarket and probably gets prosecuted less often.
Arthur Herzog’s Vesco doesn’t qualify as a great biography. It has too much detail about things I don’t understand without sufficient explanation to make them comprehensible and not enough detail about the things that make Robert Vesco interesting even though he can’t be sympathized with. Unless you have a burning passion for corporate business, financial institutions, and white collar crime, this probably isn’t a book worth your time.