Around January 21st1998 a meeting, or series of meetings, took place at Green Hills Software, Inc., between Dan O’Dowd and Glenn Hightower. The meeting included on their agenda approval of a false stock option agreement to replace the award of shares made to Craig Franklin in 1996.
This was the final step Dan needed to take before exercising the sudden death partnership agreement between himself and Hightower, who had provided the original funding which allowed Green Hills to open its doors in 1982. More on Hightower can be read here.
Dan had cut a deal with Franklin, agreeing to help him evade characterization of the stock award as marital property in exchange for Franklin’s assistance to prevent Hightower from exercising his right to buy out the company for 47 million, far less than the approximately 350 million it was actually worth.
Franklin’s wife, Melinda, had no idea her husband was divorcing her, though later she would find out he had filed the day he returned from their Hawaiian vacation with the entire family of six children on January 1st. It was planned not as a divorce but as take-no-prisoners war.
Melinda had every reason to believe their marriage was stable. The previous year she had saved Craig from the tax disaster his non-filing of returns had caused. He had, in fact, never filed until Melinda forced the issue the previous year when she discovered the reason they were bankrupt was Franklin’s non-filing.
Other things she did not know came very close to killing her and the couple’s son, Arthur.
Hightower found out about the plan just after the meeting during which he was persuaded to sign off on Franklin’s new share agreement. Dan informed him the sudden death partnership agreement had been exercised.
Shocked, Hightower returned to Pasadena and began to make arrangements to raise the capital. This, he believed, would not be difficult for him. He had started and still owned other companies. He was wrong only because he did not know Craig was to persuade the other vice presidents and critical employees to agree to walk out if he owned Green Hills. Craig did just this the next summer. When the due diligence team came to Green Hills a walk-out occurred. Lavish promises of additional stock and other benefits had been made to the senior personnel. Not all promises were kept, but after the fact there was little they could do about it.
Over the next nearly two years the outcome of the Hightower buyout remained in question because Glenn, outraged by Dan’s manipulations, which had begun with a restraining order keeping him from making contact with employees, filed a law suit after the orchestrated walk out. Law suit, Exhibit 7 “Morgan Pillsbury – Franklin Transcript”
Dan, who has all of the human skills of a piranha, evidently finally realized he needed someone to create a more human face for the corporation. Since Dan hoped to take Green Hills public this should also be someone with an impressive corporate resume able to make affirmative introductions to potentially useful board members, essential to acquiring credibility.
And thus entered a new member for the GHS Team.
John B. Douglas III, Unlikely Addition to the Green Hills Team
Mr. Douglas bio, as per the Green Hills Site:
Douglas’ association with Green Hills Software actually began simultaneous with the time Dan was feverishly working to ensure he had the 47 million locked down to buy Green Hills himself. Reading the various and carefully worded resumes which abound on the Internet for Jack you find this phrasing at Bloomberg Business Week. “Mr. Jack Douglas has been Vice Chairman at Green Hills Software since April 2003. Mr. Douglas served as Chief Executive Officer to obtain multiple forms of debt and equity financing and on other strategic initiatives. Mr. Douglas also acts as a key advisor to other growing companies. ”
Chief Executive Officer of Green Hills Software during the time they were attempting to go public? Of course, it could be a mis-statement by an online site which was perpetuated through reposting. But there are other indications money was tight during the period of 1998 – 2003 when Green Hills became a government contractor.
Dan borrowed a million dollars from Dr. Carl Franklin, Craig’s father, supposedly to pay for Craig’s stock options. It would have seemed reasonable for Craig to then use the generous dividends being paid from 1998 on to repay this, but evidently this did not happen. The money was extracted from Dan. Craig never repays loans since he has better uses for the money. This has been true his entire life, with only a few exceptions.
This ‘loan,’ for whatever reason it was made, was not repaid when expected and only firm action on the part of Dr. Franklin’s other two sons, Sterling and Larry, both attorneys, resulted in extracting the money from Dan.
Someone with Jack’s qualifications must have seemed like a dream come true for Dan at the time because along with Jack’s connections he also brought a far more normal personal manner than either Dan or Craig had to offer as officers of the company.
Also, there was Dan, strapped for money, with Hightower suing and only Craig to provide him with comfort and ideas.
Craig at this time, late 1998 through 1999, had become obsessed with having a hit man kill his wife, according to affidavits given later by those talking to him every day. (Affidavit, Middle of Page 2) This came about because Melinda was, like Hightower, not following the carefully scripted plan he and Dan had laid out. She was supposed to die during the divorce from her heart condition, as Hightower was supposed to just go away. Therefore, it is doubtful Dan found their daily lunches together very comforting. Craig’s public ranting probably made Dan, who is far more cautious, uneasy.
Craig looks far more normal here than he actually is. Despite appearances, he is highly intelligent with an I. Q. of 180, making him smarter than Einstein.
Jack not only looks normal, he looks charming, sophisticated, and intelligent. His resume, which includes his graduation, summa cum laude from Harvard Law, speaks for itself. Jack could be depended on not to shock potential investors with his table manners, too, an iffy proposition with Craig.
Additionally, Jack’s masterful analysis for running an in-house division for corporate counsel, “The Reebok Rules,” is filled with sage advice, some of which Jack might have found useful himself.
Now, what motivated John B. (Jack) Douglas III, to go to work at Green Hills, besides money? Jack had received stock when he was working for Apple and, presumably, his income from the stellar corporations, including Reebok, where he held senior executive positions, “helping Reebok grow to over $3 billion in revenue,” also provided substantial remuneration, as did Millennium Pharmaceuticals, Inc.
Each of these jobs seems to have grown shorter in duration. Jack was at Reebok for ten years, the others for far shorter periods, compressed into the time he had also assumed a consulting role with Green Hills.
By all reports, if they are to be believed, it was not any problem with his professional performance which caused him to move on. That leaves personal considerations and, of late, we have had indications all was not normal with Jack’s personal life.
On April 17th Jack was arrested for committing an act of, “Lewdness, open and gross, c 272 s16 (272/16)” in plain sight of a family seated for a meal at the Olive Garden Restaurant in Taunton, Massachusetts. The father of the children, an off duty police officer immediately confronted Jack, this leading to his arrest and arraignment. The event took place at 3:49pm. The facts are recounted in the police report.
Evidently, Jack is an exhibitionist, a form of sexual perversion, “known by several names including: flashing, apodysophilia, and Lady Godiva syndrome, according to Thrive Boston.
According to the same site “Some exhibitionists have a conscious desire to shock or upset the person or persons they are exposing themselves to. In contrast, a high percentage of exhibitionists hope or fantasize that the target of their exposure will become sexually aroused and want to engage in sexual activity with them.
In some cases an exhibitionist will masturbate while exposing him or herself.”
The first part of this accords with Jack’s reported activity.
The Defense Human Resources Activity (DHRA) site provides the outcome of studies which state male exhibitionists may be sexually inhibited, or even impotent, this starting before age 18 in most cases. Most common in men in their twenties the impulse supposedly diminishes during the 30s and 40s, becoming less common. Another study found, “that the typical exhibitionist is married, has above average intelligence, is satisfactorily employed, and shows no other evidence of serious emotional problems.132 and that, the absence of other emotional problems has been a consistent finding in a number of studies. 130“
The condition is reported to be treatable and treatment programs are available which lower the rate of recidivism to ‘rare.’ Today Jack is entering his sixties, however, making him somewhat unusual for an exhibitionist.
It is therefore unlikely the incident in Taunton was the first time Jack exhibited himself, raising the possibility his changes in employment and frequent changes of address are not unrelated to this condition.
It is conceivable Green Hills provided a safe harbor for Jack because events in his personal life had overcome him. By leaving Millennium and ‘hiring on’ at Green Hills he could continue to live in Massachusetts and still have an active professional profile, even if it was one which radically changed his previous, far more prestigious, trajectory.
Also, he did not actually have to live in Santa Barbara and see very much of Dan and Craig. But he knew, through his interactions with them, beginning in 1998, the company would cover for him if questions about his personal life were raised. Dan had certainly provided this service to Craig, who was guilty of raping women in his office during working hours, to say nothing of his after-hours activities.
And, given the arrest cited above, it is very likely he knew it would be well to have an understanding and helpful employer.
Despite not inconsiderable research on the web there is actually very little to be found about Jack’s personal life. Those with which he is associated are better understood as extensions of his professional life.
Unlike his fellow Team members Jeff Hazarian and Jason Issacs, he appears to be uninvolved in his local community in any not-for-profit organization. Hazarian and Issacs both joined Green Hills after the events of 1998 and are in stable marriages. Hazarian is very active in his church. Issacs and his wife contribute and participate in local charities, which other members of the GHS management team, do not appear to do.
In effect, Dan provided a sanctuary for those employees inclined to engage in personally unethical behavior. This became a perk of employment, where it obtained the services of individuals who otherwise would not have tolerated his unwillingness to share profits and a business strategy which included providing weapons used to commit human rights violations around the world.
The score card for the management team can be read like this:
Dan and Craig – Psychopathic.
Dave Kleidermacher and Dave Chandler – Caught by greed and their complicity in Dan’s 1998 fraud.
Jack – Sexually Deviant, needs assistance in finding an effective treatment program.
Chris Smith – Unknown.
Tim Reed – Cal Tech graduate, still researching.
Jeff and Jason – Tolerant of the corporate culture which financially benefits them.Don't forget to Like Freedom Outpost on Facebook, Google Plus, & Twitter. You can also get Freedom Outpost delivered to your Amazon Kindle device here.