MLMs are the mirror-world version of community organizing
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
In her unmissable 2023 book Doppelganger, Naomi Klein paints a picture of a "mirror world" of right wing and conspiratorial beliefs that are warped, false reflections of real crises:
For example, Qanon's obsession with "child trafficking" is a mirror-world version of the real crises of child poverty, child labor, border family separations and kids in cages. Anti-vax is the mirror-world version of the true story of the Sacklers and their fellow opioid barons making billions on Oxy and fent, with the collusion of corrupt FDA officials and a pliant bankruptcy court system. Xenophobic panic about "immigrants stealing jobs" is the mirror world version of the well-documented fact that big business shipped jobs to low-waged territories abroad, weakening US labor and smashing US unions. Cryptocurrency talk about "decentralization" is the mirror-world version of the decay of every industry (including tech) into a monopoly or a cartel.
Klein is at pains to point out that other political thinkers have described this phenomenon. Back in the 19th century, leftists called antisemitism "the socialism of fools." Socialism – the idea that working people are preyed upon by capital – is reflected in the warped mirror as "working people are preyed upon by international Jewish bankers."
The mirror world is a critical concept, because it shows that far right and conspiratorial beliefs are often uneasy neighbors with real, serious political movements. The swivel-eyed loons have a point, in other words:
Once you understand the mirror world, you start to realize that many right wing conspiracists could have been directed into productive movements, if only they'd understood that their problems were with systems, not sinister individuals (this is why Trump has ordered a purge of any federally funded research that contains the word "systemic"):
This also explains why the "tropes" of right wing conspiratorialism sometimes echo left wing, radical thought. I once had a (genuinely unhinged) dialog with a self-described German "progressive" who told me that criticizing the finance industry as parasitic on the real economy was "structurally antisemitic." Nonsense like this is why Klein's "mirror world" is so important: unless you understand the mirror world, you can end up believing that "progressive" just means "defending anything the right hates."
Historian Erik Baker is the author of a new book, Make Your Own Job: How the Entrepreneurial Work Ethic Exhausted America, which has some very interesting things to say about the mirror world:
https://www.hup.harvard.edu/books/9780674293601
In a recent edition of the always-excellent Know Your Enemy podcast, the hosts interviewed Baker about the book, and the conversation turned to the subject of pyramid schemes, the "multilevel marketing systems" that are woven into so many religious, right-wing movements:
MLMs have it all: prosperity gospel ("God rewards virtue with wealth"), atomization ("you are an entrepreneur and everyone in your life is your potential customer"), and rabid anti-Communism ("solidarity is a trick to make you poorer").
The rise of the far right can't be separated from the history of MLMs. The modern MLM starts with Amway, a cultlike national scam that was founded by Jay Van Andel and Richard DeVos (father-in-law of Betsy DeVos).
Rank-and-file members of the Amway cult lived in dire poverty, convinced that their financial predicament was their own fault for not faithfully following the "sure-fire" Amway method for building a business. Andrea Pitzer's gripping memoir of growing up in an Amway household offers a glimpse of the human cost of the cult:
Amway – and MLMs like it – don't just bleed out their members by convincing them to buy mountains of useless crap they're supposed to sell to their families, while enriching the people at the top of the pyramid who sell it to them. The "toxic positivity" of multi-level marketing cults forces members deep into debt to pay for seminars and retreats where they are supposed to learn how to repair the personal defects that keep them from being "successful entrepreneurs." The topline of the cult isn't just getting rich selling stuff – they're making bank by selling false hope, literally, in Hilton ballrooms and convention centers across the country, where hearing an MLM scammer berate you for being a "bad entrepreneur" costs thousands of dollars.
Amway destroyed so many lives that Richard Nixon's FTC decided to investigate it. The investigation wasn't going well for Amway, which was facing an existential crisis that they were rescued from by Nixon's resignation. You see, Nixon's successor, Gerald Ford, was the former Congressman of Amway co-founder Jay Van Andel, who was also the head of the US Chamber of Commerce, the most powerful business lobbyist in America.
At Ford's direction, the FTC exonerated Amway of all wrongdoing. But it's even worse than that: Ford's FTC actually crafted a rule that differentiated legal pyramid schemes from illegal ones, based on Amway's destructive business practices. Under this new rule, any pyramid scheme that had the same structure as Amway was presumptively legal. Every MLM operating in America today is built on the Amway model, taking advantage of the FTC's Amway rule to operate in the open, without fear of legal repercussions.
MLMs prey on the poor and desperate: women, people of color, people in dying small towns and decaying rustbelt cities. It's not just that these people are desperate – it's that they only survive through networks of mutual aid. Poor women rely on other poor women to help with child care, marginalized people rely on one another for help with home maintenance, small loans, a place to crash after an eviction, or a place to park the RV you're living out of.
In other words, people who lack monetary capital must rely on social capital for survival. That's why MLMs target these people: an MLM is a system for destructively transforming social capital into monetary capital. MLMs exhort their members to mine their social relationships for "leads" and "customers" and to use the language of social solidarity ("women helping women") to wheedle, guilt, and arm-twist people from your mutual aid network into buying things they don't need and can't afford.
But it's worse, because what MLMs really sell is MLMs. The real purpose of an MLM sales call is to convince the "customer" to become an MLM salesperson, who owes you a share of every sale they make and is incentivized to buy stock they don't need (from you) in order to make quotas. And of course, their real job is to sign up other salespeople to work under them, and so on.
An MLM isn't just a pathogen, in other words – it's a contagion. When someone in your social support network gets the MLM disease, they don't just burn all their social ties with you and the people you rely on – they convince more people in your social group to do the same.
Which brings me back to the mirror world, and Erik Baker's conversation with the Know Your Enemy podcast. Baker starts to talk about who gets big into Amway: "people who already effectively lead by the force of their charisma and personality many other people in their lives. Right? Because you're able to sell to those people, and you're able to recruit those people. What are we talking about? Well, they're effectively recruiting organizers, people who have a natural capacity for organizing and then sending them out in the world to organize on behalf of Christian capitalism."
Listening to this, I was thunderstruck: MLM recruiters are the mirror world version of union organizers. In her memoir of growing up in Amway, Andrea Pitzer talks about how her mom would approach strangers and try to lead them through a kind of structured discussion:
Everywhere we went—the mall, state parks, grocery stores—she’d ask people whether they could use a little more money each month. “I’d love to set up a time to talk to you about an exciting business opportunity.” The words should have seemed suspect. Yet people almost always gave her their number. Her confidence and professionalism were reassuring, and her enthusiasm was electric, even, at first, to me. “What would you do with $1 million?” she’d ask, spinning me around the kitchen.
This kind of person, having this kind of dialog, is exactly how union organizers work. In A Collective Bargain, Jane McAlevey's classic book on labor organizing, she describes how she would seek out the charismatic, outgoing workers in a job-site, the natural leaders, and recruit them to help bring the other workers onboard:
Organizer training focuses on how to have a "structured organizing conversation," which McAlevey described in a 2019 Jacobin article:
“If you had a magic wand and could change three things about life in America [or her town or city or school], what would you change?” The rest of your conversation needs to be anchored to her answers to that question.
The MLM conversation and the union conversation have eerily similar structures, but the former is designed to commodify and destroy solidarity, and the latter is designed to reinforce and mobilize solidarity. Seen in this light, an MLM is a mirror world union, one that converts solidarity into misery and powerlessness instead of joy and strength.
The MLM movement doesn't just make men like Rich De Vos and Jay Van Andel into billionaires. MLM bosses are heavy funders of the right, a blank check for the Heritage Foundation. Trump is the MLM president, a grifter who grew up on the gospel of Norman Vincent Peale – a key figure in MLM cult dynamics – who tells his followers that wealth is a sign of virtue. Trump boasts about all the people he's ripped off, boasting about how getting away with cheating "makes me smart":
The corollary is that being cheated means you're stupid. Caveat emptor, the motto of the cryptocurrency industry ("not your wallet, not your coins") that spent hundreds of millions to get Trump elected.
Tech has its own mirror world. The people who used tech to find fellow weirdos and make delightful and wonderful things are mirrored by the people who used tech to find fellow weirdos and call for fascism, ethnic cleansing, and concentration camps.
In Picks and Shovels, my next novel (Feb 17), I introduce readers to a fictitious 1980s religious computer sales cult called Fidelity Computing, run by an orthodox rabbi, a Catholic priest and a Mormon rabbi:
Fidelity is a faith scam, a pyramid scheme that is parasitic upon the bonds of faith and fellowship. Martin Hench, the hero of the story – a hard-fighting high tech forensic accountant – goes to work for a competing business, Computing Freedom, run by three Fidelity ex-employees who have left their faiths and their employers to pursue a vision of computers that is about liberation, rather than control.
The women of Computing Freedom – a queer orthodox woman who's been kicked out of her family, a Mormon woman who's renounced the LDS over its opposition to the Equal Rights Amendment, and a nun who's left her order to throw in with the Liberation Theology movement – are all charismatic, energetic, inspirational organizers.
Because of course they are – that's why they were so good at selling computers for the Reverend Sirs who sit at the top of Fidelity Computing's pyramid scheme.
Hearing Baker's interview and reading Pitzer's memoir last week made it all click together for me. Not just that MLMs destroy social bonds, but that within every person who gets sucked into an MLM, there's a community organizer who could be building the bonds that MLMs destroy.
Kickstarting a new Martin Hench novel about the dawn of enshittification
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
Picks and Shovels is a new, standalone technothriller starring Marty Hench, my two-fisted, hard-fighting, tech-scam-busting forensic accountant. You can pre-order it on my latest Kickstarter, which features a brilliant audiobook read by @wilwheaton:
http://martinhench.com
This is the third Hench novel, following on from the nationally bestselling The Bezzle (2024) and Red Team Blues (2023). I wrote Red Team Blues with a funny conceit: what if I wrote the final volume of a beloved, long-running series, without writing the rest of the series? Turns out, the answer is: "Your editor will buy a whole bunch more books in the series!"
My solution to this happy conundrum? Write the Hench books out of chronological order. After all, Marty Hench is a financial hacker who's been in Silicon Valley since the days of the first PCs, so he's been there for all the weird scams tech bros have dreamed up since Jobs and Woz were laboring in their garage over the Apple I. He's the Zelig of high-tech fraud! Look hard at any computing-related scandal and you'll find Marty Hench in the picture, quietly and competently unraveling the scheme, dodging lawsuits and bullets with equal aplomb.
Which brings me to Picks and Shovels. In this volume, we travel back to Marty's first job, in the 1980s – the weird and heroic era of the PC. Marty ended up in the Bay Area after he flunked out of an MIT computer science degree (he was too busy programming computers to do his classwork), and earning his CPA at a community college.
Silicon Valley in the early eighties was wild: Reaganomics stalked the land, the AIDS crisis was in full swing, the Dead Kennedys played every weekend, and man were the PCs ever weird. This was before the industry crystalized into Mac vs PC, back when no one knew what they were supposed to look like, who was supposed to use them, and what they were for.
Marty's first job is working for one of the weirder companies: Fidelity Computing. They sound like a joke: a computer company run by a Mormon bishop, a Catholic priest and an orthodox rabbi. But the joke's on their customers, because Fidelity Computing is a scam: a pyramid sales cult that exploits religious affinities to sell junk PCs that are designed to lock customers in and squeeze them for every dime. A Fidelity printer only works with Fidelity printer paper (they've gimmicked the sprockets on the tractor-feed). A Fidelity floppy drive only accepts Fidelity floppies (every disk is sold with a single, scratched-out sector and the drives check for an error on that sector every time they run).
Marty figures out he's working for the bad guys when they ask him to destroy Computing Freedom, a scrappy rival startup founded by three women who've escaped from Fidelity Computing's cult: a queer orthodox woman who's been kicked out of her family; a radical nun who's thrown in with the Liberation Theology movement in opposing America's Dirty Wars; and a Mormon woman who's quit the church in disgust at its opposition to the Equal Rights Amendment. The women of Computing Freedom have a (ahem) holy mission: to free every Fidelity customer from the prison they were lured into.
Marty may be young and inexperienced, but he can spot a rebel alliance from a light year away and he knows what side he wants to be on. He joins the women in their mission, and we're deep into a computing war that quickly turns into a shooting war. Turns out the Reverend Sirs of Fidelity Computer aren't just scammers – they're mobbed up, and willing to turn to lethal violence to defend their racket.
This is a rollicking crime thriller, a science fiction novel about the dawn of the computing revolution. It's an archaeological expedition to uncover the fossil record of the first emergence of enshittification, a phenomenon that was born with the PC and its evil twin, the Reagan Revolution.
The book comes out on Feb 15 in hardcover and ebook from Macmillan (US/Canada) and Bloomsbury (UK), but neither publisher is doing the audiobook. That's my department.
Why? Well, I love audiobooks, and I especially love the audiobooks for this series, because they're read by the incredible Wil Wheaton, hands down my favorite audiobook narrator. But that's not why I retain my audiobook rights and produce my own audiobooks. I do that because Amazon's Audible service refuses to carry any of my audiobooks.
Here's how that works: Audible is a division of Amazon, and they've illegally obtained a monopoly over the audiobook market, controlling more than 90% of audiobook sales in many genres. That means that if your book isn't for sale on Audible, it might as well not exist.
But Amazon won't let you sell your books on Audible unless you let them wrap those books in "digital rights management," a kind of encryption that locks them to Audible's authorized players. Under Section 1201 of the Digital Millennium Copyright Act, it's a felony punishable with a 5-year sentence and a $500k fine to supply you with a tool to remove an audiobook from Audible and play it on a rival app. That applies even if the person who gives you the tool is the creator of the book!
You read that right: if I make an audiobook and then give you the tools to move it out of Amazon's walled garden, I could go to prison for five years! That's a stiffer sentence than you'd face if you were to just pirate the audiobook. It's a harsher penalty than you'd get for shoplifting the book on CD from a truck-stop. It's more draconian than the penalty for hijacking the truck that delivers the CDs!
Amazon knows that every time you buy an audiobook from Audible, you increase the cost you'll have to pay if you switch to a competitor. They use that fact to give readers a worse deal (last year they tried out ads in audiobooks!). But the people who really suffer under this arrangement are the writers, whom Amazon abuses with abandon, knowing they can't afford to leave the service because their readers are locked into it. That's why Amazon felt they could get away with stealing $100 million from indie audiobook creators (and yup, they got away with it):
https://www.audiblegate.com/about
Which is why none of my books can be sold with DRM. And that means that Audible won't carry any of them.
For more than a decade, I've been making my own audiobooks, in partnership with the wonderful studio Skyboat Media and their brilliant director, Gabrielle de Cuir:
https://skyboatmedia.com/
I pay fantastic narrators a fair wage for their work, then I pay John Taylor Williams, the engineer who masters my podcasts, to edit the books and compose bed music for the intro and outro. Then I sell the books at every store in the world – except Audible and Apple, who both have mandatory DRM. Because fuck DRM.
Paying everyone a fair wage is expensive. It's worth it: the books are great. But even though my books are sold at many stores online, being frozen out of Audible means that the sales barely register.
That's why I do these Kickstarter campaigns, to pre-sell thousands of audiobooks in advance of the release. I've done six of these now, and each one was a huge success, inspiring others to strike out on their own, sometimes with spectacular results:
Today, I've launched the Kickstarter for Picks and Shovels. I'm selling the audiobook and ebook in DRM-form, without any "terms of service" or "license agreement." That means they're just like a print book: you buy them, you own them. You can read them on any equipment you choose to. You can sell them, give them away, or lend them to friends. Rather than making you submit to 20,000 words of insulting legalese, all I ask of you is that you don't violate copyright law. I trust you!
Speaking of print books: I'm also pre-selling the hardcover of Picks and Shovels and the paperbacks of The Bezzle and Red Team Blues, the other two Marty Hench books. I'll even sign and personalize them for you!
http://martinhench.com
I'm also offering five chances to commission your own Marty Hench story – pick your favorite high-tech finance scam from the past 40 years of tech history, and I'll have Marty bust it in a custom short story. Once the story is published, I'll make sure you get credit. Check out these two cool Little Brother stories my previous Kickstarter backers commissioned:
Spill
https://reactormag.com/spill-cory-doctorow/
Vigilant
https://reactormag.com/vigilant-cory-doctorow/
I'm heading out on tour this winter and spring with the book. I'll be in LA, San Francisco, San Diego, Burbank, Bloomington, Chicago, Richmond VA, Toronto, NYC, Boston, Austin, DC, Baltimore, Seattle, and other dates still added. I've got an incredible roster of conversation partners lined up, too: John Hodgman, Charlie Jane Anders, Dan Savage, Ken Liu, Peter Sagal, Wil Wheaton, and others.
I hope you'll check out this book, and come out to see me on tour and say hi. Before I go, I want to leave you with some words of advance praise for Picks and Shovels:
I hugely enjoyed Picks and Shovels. Cory Doctorow’s reconstruction of the age is note perfect: the detail, the atmosphere, ethos, flavour and smell of the age is perfectly conveyed. I love Marty and Art and all the main characters. The hope and the thrill that marks the opening section. The superb way he tells the story of the rise of Silicon Valley (to use the lazy metonym), inserting the stories of Shockley, IBM vs US Government, the rise of MS – all without turning journalistic or preachy.
The seeds of enshittification are all there… even in the sunlight of that time the shadows are lengthening. AIDS of course, and the coming scum tide of VCs. In Orwellian terms, the pigs are already rising up on two feet and starting to wear trousers. All that hope, all those ideals…
I love too the thesis that San Francisco always has failed and always will fail her suitors.
Despite cultural entropy, enshittification, corruption, greed and all the betrayals there’s a core of hope and honour in the story too.
-Stephen Fry
Cory Doctorow writes as few authors do, with tech world savvy and real world moral clarity. A true storyteller for our times.
-John Scalzi
A crackling, page-turning tumble into an unexpected underworld of queer coders, Mission burritos, and hacker nuns. You will fall in love with the righteous underdogs of Computing Freedom—and feel right at home in the holy place Doctorow has built for them far from Silicon Valley’s grabby, greedy hands."
-Claire Evans, editor of Motherboard Future, author of Broad Band: The Untold Story of the Women Who Made the Internet.
"Wonderful…evokes the hacker spirit of the early personal computer era—and shows how the battle for software freedom is eternal."
-Steven Levy, author of Hackers: Heroes of the Computer Revolution and Facebook: The Inside Story.
What could be better than a Martin Hench thriller set in 1980s San Francisco that mixes punk rock romance with Lotus spreadsheets, dot matrix printers and religious orders? You'll eat this up – I sure did.
-Tim Wu, Special Assistant to the President for Technology and Competition Policy, author of The Master Switch: The Rise and Fall of Information Empires
Captures the look and feel of the PC era. Cory Doctorow draws a portrait of a Silicon Valley and San Francisco before the tech bros showed up — a startup world driven as much by open source ideals as venture capital gold.
-John Markoff, Pulitzer-winning tech columnist for the New York Times and author of What the Doormouse Said: How the Sixties Counterculture Shaped the Personal Computer Industry
You won't put this book down – it's too much fun. I was there when it all began. Doctorow's characters and their story are real.
-Dan'l Lewin, CEO and President of the Computer History Museum
Kickstarting the Red Team Blues audiobook, which Amazon won't sell (read by Wil Wheaton!)
Red Team Blues is my next novel, a post-cyberpunk anti-finance finance thriller; it’s a major title for my publishers Tor Books and Head of Zeus, and it’s swept the trade press with starred reviews all ‘round. Despite all that, Audible will not sell the audiobook. In fact, Audible won’t sell any of my audiobooks. Instead, I have to independently produce them and sell them through Kickstarter:
If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
Audible is Amazon’s monopoly audiobook platform. It has a death-grip on the audiobook market, commanding more than 90% of genre audiobook sales, and every single one of those audiobooks is sold with Amazon’s DRM on it. That means that you can’t break up with Amazon without throwing away those audiobooks. Under the 1998 Digital Millennium Copyright Act, I can’t give you a tool to convert my own copyrighted audiobooks to a non-Amazon format. Doing so is a felony carrying a five year prison sentence and a $500,000 fine for an act that in no way infringes anyone’s copyright! Indeed, merely infringing copyright is much less illegal than removing Amazon’s mandatory DRM from my own books!
I’ve got amazing publishers who support my crusade against DRM, but they’re not charities. If they can’t sell my audiobooks on the platform that represents 90% of the market, they’re not going to make audio editions at all. Instead, I make my own audiobooks, using brilliant voice actors like Amber Benson and @neil-gaiman, and I sell them everywhere except Audible.
Doing this isn’t cheap: I’m paying for an incredible studio (Skyboat Media), a world-class director (Gabrielle de Cuir), top-notch sound editing and mastering, and, of course, killer narrators. And while indie audiobook platforms like Libro.fm and downpour.com are amazing, the brutal fees extracted by Apple and Google on app sales means that users have to jump through a thousand hoops to shop with indie stores. Most audiobook listeners don’t even know that these stores exist: if a title isn’t available on Audible, they assume no audiobook exists.
That’s where Kickstarter comes in: twice now, I’ve crowdfunded presales of my audiobooks through KS, and these campaigns were astoundingly successful, smashing records and selling thousands of audiobooks. These campaigns didn’t just pay my bills (especially during lockdown, when our household income plunged), but they also showed other authors that it was possible to evade Amazon’s monopoly chokepoint and sell books that aren’t sticky-traps for Audible’s walled garden/prison:
For starters, there’s the narrator: @wilwheaton, whose work on my previous books is outstanding, hands-down my favorite (don’t tell my other narrators! They’re great too!):
https://wilwheaton.net/
Beyond Wil’s narration, there’s the subject matter. The hero of Red Team Blues is a hard-charging forensic accountant who’s untangled every Silicon Valley finance scam since he fell in love with spreadsheets as as a MIT freshman, dropped out, got his CPA ticket, and moved west. Now, at the age of 67, Marty Hench is ready to retire, but a dear old friend — a legendary cryptographer — drags him back for one last job — locating the stolen keys to the backdoor he foolishly hid in a cryptocurrency that’s worth more than a billion dollars.
That’s the starting gun for a “grabby next-Tuesday thriller” that sees Marty in between three-letter agencies and international crime syndicates, all of whom view digital technology as a carrier medium for scams, violence and predation. Marty’s final adventure involves dodgy banks, crooked crypto, and complicit officials in a fallen paradise where computers’ libertory promise has been sucked dry by billionaire vampires.
It’s a pretty contemporary story, in other words.
I wrote this one before SVB, before Sam Bankman0Fried and FTX — just like I wrote Little Brother before Snowden’s revelations. It’s not that I’m prescient — fortune-telling is a fatalist’s delusion — it’s that these phenomena are just the most spectacular, most recent examples in a long string of ghastly and increasingly dire scandals.
Red Team Blues blasted out of my fingertips in six weeks flat, during lockdown, when technology was simultaneously a lifeline, connecting us to one another during our enforced isolation; and a tool of predatory control, as bossware turned our “work from home” into “live at work.”
The last time I wrote a book that quickly, it was Little Brother, and, as with Little Brother, Red Team Blues is a way of working out my own anxieties and hopes for technology on the page, in story.
These books tap into a nerve. I knew I had something special in my hands when, the night after I finished the first draft, I rolled over at 2AM to find my wife sitting up in bed, reading.
“What are you doing?” I asked.
“I had to find out how it ended,” she answered.
The next day, my editor sent me a four-line email:
That.
Was.
A! Fucking! Ride!
Whoa!
Within a week, he’d bought Red Team Blues…and two sequels. I finished writing the second of these on Monday, and all three are coming out in the next 22 months. It’s gonna be a wild ride.
Kickstarter backers can get the usual goodies: DRM-free audiobooks and ebooks, hardcovers (including signed and personalized copies), and three very special, very limited-run goodies.
First, there’s naming rights for characters in the sequels — I’m selling three of these; they’re a form of cheap (or at least, reasonably priced) literary immortality for you or a loved one. The sequels are a lot of fun — they go in reverse chronology, and the next one is The Bezzle, out in Feb 2024, a book about prison-tech scams, crooked LA County Sheriff’s Deputy gangs, and real-estate scumbags turned techbros.
The third book is Picks and Shovels (Jan 2025), and it’s Marty’s first adventure after he comes west to San Francisco and ends up working for the bad guys, an affinity scam PC company called “Three Wise Men” that’s run by a Mormon bishop, a Catholic priest and an orthodox rabbi who fleece their faithful with proprietary, underpowered computers and peripherals, and front for some very bad, very violent money-men.
Next, there’s three Marty Hench short story commissions: the Hench stories are machines for turning opaque finance scams into technothrillers. While finance bros use MEGO (“my eyes glaze over”) as a weapon to bore their marks into submission, I use the same performative complexity as the engines of taut detective stories. Commissioning a Hench story lets you turn your favorite MEGO scam into a science fiction story, which I’ll then shop to fiction websites (every story I’ve written for the past 20 years has sold, though in the event that one of these doesn’t, I’ll put it up under a CC license).
Finally, there’s a super-ultra-limited deluxe hardcover edition — and I do mean limited, just four copies! These leather-bound editions have Will Staehle’s fantastic graphic motif embossed in their covers, and the type design legend John D Berry is laying out the pages so that there’s space for a hidden cavity. Nestled in that cavity is a hand-bound early draft edition of The Bezzle, the sequel to Red Team Blues. The binding is being done by the fantastic book-artist John DeMerritt. Each copy’s endpapers will feature a custom cryptographic puzzle created especially for it by the cryptographer Bruce Schneier.
I often hear from readers who want to thank me for the work I do, from the free podcast I’ve put out since 2006 to the free, CC BY columns I’ve written for Pluralistic for the past three years. There is no better way to thank me than to back this Kickstarter and encourage your friends to do the same:
Preselling a ton of audiobooks, ebooks, and print books is a huge boost to the book on its launch — incomparable, really. Invaluable.
What’s more, helping me find a viable way to produce popular, widely heard audiobooks without submitting to Amazon’s DRM lock-in sets an example for other creators and publishers: we have a hell of a collective action problem to solve, but if we could coordinate a response to Audible demanding the right to decide whether our work should have their DRM, it would force Audible to treat all of us — creators, publishers and listeners — more fairly.
I’ll be heading out on tour to the US, Canada, the UK and Germany once the book is out. I’m really looking forward to as many backers in person as I can! Thank you for your support over these many long years — and for your support on this Kickstarter.
Today (Mar 22), I’m doing a remote talk for the Institute for the Future’s “Changing the Register” series.
[Image ID: A graphic showing a phone playing the Red Team Blues audiobok, along with a quote from Booklist, 'Jam-packed with cutting-edge ideas about cybersecurity and crypto. Another winner from an sf wizard.']
NEXT WEEKEND (June 7–9), I'm in AMHERST, NEW YORK to keynote the 25th Annual Media Ecology Association Convention and accept the Neil Postman Award for Career Achievement in Public Intellectual Activity.
No one was better positioned to tell the tale of the largest sting operation in world history than veteran tech reporter Joseph Cox, and tell it he did, in Dark Wire, released today:
Cox – who was one of Motherboard's star cybersecurity reporters before leaving to co-found 404 Media – has spent years on the crimephone beat, tracking vendors who sold modded phones (first Blackberries, then Android phones) to criminal syndicates with the promise that they couldn't be wiretapped by law-enforcement.
It's possible that some of these phones were secure over long timescales, but all the ones we know about are ones that law enforcement eventually caught up with, usually by capturing the company's top founders explicitly stating that the phones were sold to assist in the commission of crimes, and admitting to remote-wiping phones to obstruct law-enforcement options. It's hard to prove intent but it gets a lot easier when the criminal puts that intent into writing (that's true of tech executives, too!):
But after a particularly spectacular bust landed one of the top crimephone sales reps in the FBI's power, they got a genuinely weird idea: why not start their own crimephone company?
The plan was to build an incredibly secure, best-of-breed crimephone, one with every feature that a criminal would want to truly insulate themselves from law enforcement while still offering everything a criminal could need to plan and execute crimes.
They would tap into the network of crimephone distributors around the world, not telling them who they were truly selling for – nor that every one of these phones had a back-door that allowed law-enforcement to access every single message, photo and file.
This is the beginning of an incredible tale that is really two incredible tales. The first is the story of the FBI and its partners as they scaled up Anom, their best-of-breed crimephone business. This is a (nearly) classic startup tale, full of all-nighters, heroic battles against the odds, and the terror and exhilaration of "hockey-stick" growth.
The difference between this startup and the others we're already familiar with is obvious: the FBI and its global partners are acting under a totally different set of constraints to normal startup founders. For one thing, their true mission and identity must be kept totally secret. For another, they have to navigate the bureaucratic barriers of not one, but many governments and their courts, constitutions and procedures.
Finally, there are the stakes: while the bulk of the crimes that the FBI targets with Anom are just the usual futile war-on-drugs nonsense (albeit at a never-before seen scale), they also routinely encounter murders, kidnappings, tortures, firebombings, and other serious crimes, either in the planning phase, or after they have been committed. They have to make moment-to-moment calls about when and whether to do something about these, as each action taken based on intercepts from Anom threatens to tip the FBI's hand.
That's one of the startup stories in Cox's book. The other one is the crime startup, the one that the hapless criminal syndicates that sign up to distribute Anom devices find themselves in the middle of. They, too, are experiencing hockey-stick growth. They, too, have a fantastically lucrative tiger by the tail. And they, too, have a unique set of challenges that make this startup different from any other.
The obvious difference is that they are involved in global criminal conspiracies. They have to both grow and remain hidden. The tradecraft and skullduggery are fascinating, in the manner of any great crime procedural tale. But there's another constraint: these criminals are competing with one another to corner the market on these incredibly lucrative phones. Being part of violent, global criminal conspiracies, they don't confine themselves to the normal Silicon Valley crimes of violating antitrust law – they are engaged in all-out warfare.
These two startups are, of course, the same startup, but only one side knows it. As Cox weaves these two tales together – along with glimpses into the lives of the hapless gig-work developers in Asia who are developing and maintaining the Anom platform – we get front seat in a series of high-speed, high-stakes near-collisions between these two groups.
And it's not always the cops who have the advantage. When an ambitious mobster figures out how to clone the "black boxes" that initialize new Anom phones, the FBI are caught flatfooted as the number of Anom devices in the hands of criminals balloons, producing a volume of intercepts that vastly exceeds their processing capacity.
Cox has been on this story for a decade, and it shows. He has impeccable sourcing and encyclopedic access to the court records and other public details that allow him to reproduce many of the most dramatic scenes in the Anom caper verbatim. This really shines in the final section of the book, when the FBI and its partners decide to roll up the company with a series of global arrests that culminate in a triumphant press-conference in which the true masters of Anom are revealed.
As a privacy and encryption advocate, there were moments in this story that made me a little uncomfortable. There are places where the FBI is chafing at the constitutional limits on its surveillance powers where we can't help buy sympathize with these "good guys" going after "bad guys." But this the the FBI, a lawless, unaccountable secret police who routinely bypass those limits by secretly buying data from sleazy data-brokers, or illegally sharing data with the NSA.
The conclusion really hammers home the point that the FBI's problem isn't constitutional niceties. Despite seizing hundreds of tons of illegal drugs and arresting thousands of high-ranking criminal syndicate bosses, Anom made no difference in the drug trade. Prohibition, after all, just makes criminals more wealthy and powerful. The Anom raids were, at worst, the cost of doing business – and at best, they were a global reset that cleared the board of established actors so that other criminals could seize their turf.
But even though Anom didn't triumph over crime, Dark Wire is a triumph. The book's out today, and there will shortly be a Netflix adaptation based on it, directed by Jason Bateman:
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
Picks and Shovels is a new, standalone technothriller starring Marty Hench, my two-fisted, hard-fighting, tech-scam-busting forensic accountant. You can pre-order it on my latest Kickstarter, which features a brilliant audiobook read by Wil Wheaton.
My next novel is Picks and Shovels, out next month. It's tells the origin story of Martin Hench, my hard-charging, scambusting, high-tech forensic accountant, in a 1980s battle over the soul of a PC company:
I'm currently running a Kickstarter to pre-sell the book in every format: hardcover, DRM-free ebook, and an independently produced, fabulous DRM-free audiobook read by Wil Wheaton, who just nailed the delivery:
Picks and Shovels opens with a long prologue that recounts Marty's misadventures as a failing computer science student at MIT, his love-affair with computers, and his first disastrous startup venture. It ends with him decamping to Silicon Valley with his roommate Art, a brilliant programmer, to seek their fortune.
Chapter one opens with Marty's first job, working for a weird PC company (there were so many weird PC companies back then!). I've posted Wil's audio reading of chapter one as a teaser for the Kickstarter:
The audio is great, but I thought I'd also serialize the text of Chapter One here, in five or six chunks. If you enjoy this and want to pre-order the book, please consider backing the Kickstarter:
Fidelity Computing was the most colorful PC company in Silicon Valley.
A Catholic priest, a Mormon bishop, and an Orthodox rabbi walk into a technology gold rush and start a computer company. The fact that it sounded like the setup for a nerdy joke about the mid-1980s was fantastic for their bottom line. Everyone who heard their story loved it.
As juicy as the story of Fidelity Computing was, they flew under most people’s radar for years, even as they built a wildly profitable technology empire through direct sales through faith groups. The first time most of us heard of them was in 1983, when Byte ran its cover story on Fidelity Computing, unearthing a parallel universe of technology that had grown up while no one was looking.
At first, I thought maybe they were doing something similar to Apple’s new Macintosh: like Apple, they made PCs (the Wise PC), an operating system (Wise DOS), and a whole line of monitors, disk drives, printers, and software.
Like the Mac, none of these things worked with anything else—you needed to buy everything from floppy disks to printer cables specially from them, because nothing anyone else made would work with their system.
And like the Mac, they sold mostly through word of mouth. The big difference was that Mac users were proud to call themselves a cult, while Fidelity Computing’s customers were literally a religion.
Long after Fidelity had been called to the Great Beyond, its most loyal customers gave it an afterlife, nursing their computers along, until the parts and supplies ran out. They’d have kept going even then, if there’d been any way to unlock their machines and use the same stuff the rest of the computing world relied on. But that wasn’t something Fidelity Computing would permit, even from beyond the grave.
I was summoned to Fidelity headquarters—in unfashionable Colma, far from the white-hot start-ups of Palo Alto, Mountain View, and, of course, Cupertino—by a friend of Art’s. Art had a lot more friends than me. I was a skipping stone, working as the part-time bookkeeper/accountant/CFO for half a dozen companies and never spending more than one or two days in the same office.
Art was hardly more stable than me—he switched start-ups all the time, working for as little as two months (and never for more than a year) before moving on. His bosses knew what they were getting: you hired Art Hellman to blaze into your company, take stock of your product plan, root out and correct all of its weak points, build core code libraries, and then move on. He was good enough and sufficiently in demand to command the right to behave this way, and he wouldn’t have it any other way. My view was, it was an extended celebration of his liberation from the legal villainy of Nick Cassidy III: having narrowly escaped a cage, he was determined never to be locked up again.
Art’s “engagements”—as he called them—earned him the respect and camaraderie of half the programmers and hardware engineers in the Valley. This, in spite of the fact that he was a public and ardent member of the Lavender Panthers, wore the badge on his lapel, went to the marches, and brought his boyfriend to all the places where his straight colleagues brought their girlfriends.
He’d come out to me less than a week after I arrived by the simple expedient of introducing the guy he was watching TV with in our living room as Lewis, his boyfriend. Lewis was a Chinese guy about our age, and his wardrobe—plain white tee, tight blue jeans, loafers—matched the new look Art had adopted since leaving Boston. Lewis had a neat, short haircut that matched Art’s new haircut, too.
To call the Art I’d known in Cambridge a slob would be an insult to the natty, fashion-conscious modern slob. He’d favored old band T-shirts with fraying armpit seams, too-big jeans that were either always sliding off his skinny hips or pulled up halfway to his nipples. In the summer, his sneakers had holes in the toes. In the winter, his boots were road-salt-crusted crystalline eruptions. His red curls were too chaotic for a white-boy ’fro and were more of a heap, and he often went days without shaving.
There were members of the Newbury Street Irregulars who were bigger slobs than Art, but they smelled. Art washed, but otherwise, he looked like a homeless person (or a hacker). His transformation to a neatly dressed, clean-shaven fellow with a twenty-five-dollar haircut that he actually used some sort of hairspray on was remarkable. I’d assumed it was about his new life as a grown-up living far from home and doing a real job. It turned out that wasn’t the reason at all.
“Oh,” I said. “That makes a lot of sense.” I shook Lewis’s hand. He laughed. I checked Art. He was playing it cool, but I could tell he was nervous. I remembered Lucille and how she listened, and what it felt like to be heard. I thought about Art, and the things he’d never been able to tell me.
There’d been a woman in the Irregulars who there were rumors about, and there were a pair of guys one floor down in Art’s building who held hands in the elevator, but as far as I knew up until that moment, I hadn’t really ever been introduced to a homosexual person. I didn’t know how I felt about it, but I did know how I wanted to feel about it.
So Art didn’t just get to know all kinds of geeks from his whistle-stop tour of Silicon Valley’s hottest new tech ventures. He was also plugged into this other network of people from the Lavender Panthers, and their boyfriends and girlfriends, and the people he knew from bars and clubs. He and Lewis lasted for a couple of months, and then there were a string of weekends where there was a new guy at the breakfast table, and then he settled down again for a while with Artemis, and then he hit a long dry spell.
I commiserated. I’d been having a dry spell for nearly the whole two years I’d been in California. The closest I came to romance was exchanging a letter with Lucille every couple of weeks—she was a fine pen pal, but that wasn’t really a substitute for a living, breathing woman in my life.
Art threw himself into his volunteer work, and he was only half joking when he said he did it to meet a better class of boys than you got at a club. Sometimes, there’d be a committee meeting in our living room and I’d hear about the congressional committee hearing on the “gay plague” and the new wave of especially vicious attacks. It was pretty much the only time I heard about that stuff—no one I worked with ever brought it up, unless it was to make a terrible joke.
It was Murf, one of the guys from those meetings, who told me that Fidelity Computing was looking for an accountant for a special project. He had stayed after the meeting and he and Art made a pot of coffee and sat down in front of Art’s Apple clone, a Franklin Ace 1200 that he’d scored six months ahead of its official release. After opening the lid to show Murf the interior, Art fired it up and put it through its paces.
I hovered over his shoulder, watching. I’d had a couple of chances to play with the 1200, and I wanted one more than anything in the world except for a girlfriend.
“Marty,” Art said, “Murf was telling me about a job I thought you might be good for.”
The Ace 1200 would have a list price of $2,200. I pulled up a chair.
Fidelity Computing’s business offices were attached to their warehouse, right next to their factory. It took up half of a business park in Colma, and I had to circle it twice to find a parking spot. I was five minutes late and flustered when I presented myself to the receptionist, a blond woman with a ten – years – out – of – date haircut and a modest cardigan over a sensible white shirt buttoned to the collar, ring on her finger.
“Hello,” I said. “I’m Marty Hench. I—uh—I’ve got a meeting with the Reverend Sirs.” That was what the executive assistant I’d spoken to on the phone had called them. It sounded weird when he said it. It sounded weirder when I said it.
The receptionist gave me a smile that only went as far as her lips. “Please have a seat,” she said. There were only three chairs in the little reception area, vinyl office chairs with worn wooden armrests. There weren’t any magazines, just glossy catalogs featuring the latest Fidelity Computing systems, accessories, consumables, and software. I browsed one, marveling at the parallel universe of computers in the strange, mauve color that denoted all Fidelity equipment, including the boxes, packaging, and, now that I was attuned to it, the accents and carpet in the small lobby. A side door opened and a young, efficient man in a kippah and wire-rim glasses called for me: “Mr. Hench?” I closed the catalog and returned it to the pile and stood. As I went to shake his hand, I realized that something had been nagging me about the catalog—there were no prices.
“I’m Shlomo,” the man said. “We spoke on the phone. Thank you for coming down. The Reverend Sirs are ready to see you now.”
He wore plain black slacks, hard black shiny shoes, and a white shirt with prayer-shawl tassels poking out of its tails. I followed him through a vast room filled with chest-high Steelcase cubicles finished in yellowing, chipped wood veneer, every scratch pitilessly lit by harsh overhead fluorescents. Most of the workers at the cubicles were women with headsets, speaking in hushed tones. The tops of their heads marked the interfaith delineators: a block of Orthodox headscarves, then a block of nuns’ black and white scarves (I learned to call them “veils” later), then the Mormons’ carefully coiffed, mostly blond dos.
“This way,” Shlomo said, passing through another door and into executive row. The mauve carpets were newer, the nap all swept in one direction. The walls were lined with framed certificates of appreciation, letters from religious and public officials (apparently, the church and state were not separate within the walls of Fidelity Computing), photos of groups of progressively larger groups of people ranked before progressively larger offices—the company history.
We walked all the way to the end of the hall, past closed doors with nameplates, to a corner conference room with a glass wall down one side, showing a partial view of a truck-loading dock behind half-closed vertical blinds. Seated at intervals around a large conference table were the Reverend Sirs themselves, each with his own yellow pad, pencil, and coffee cup.
Shlomo announced me: “Reverend Sirs, this is Marty Hench. Mr. Hench, these are Rabbi Yisrael Finkel, Bishop Leonard Clarke, and Father Marek Tarnowski.” He backed out of the door, leaving me standing, unsure if I should circle the table shaking hands, or take a seat, or—
“Please, sit,” Rabbi Finkel said. He was fiftyish, round-faced and bear-shaped with graying sidelocks and beard and a black suit and tie. His eyes were sharp behind horn-rimmed glasses. He gestured to a chair at the foot of the table.
I sat, then rose a little to undo the button of my sport coat. I hadn’t worn it since my second job interview, when I realized it was making the interviewers uncomfortable. It certainly made me uncomfortable. I fished out the little steno pad and stick pen I’d brought with me.
“Thank you for coming, Mr. Hench.” The rabbi had an orator’s voice, that big chest of his serving as a resonating chamber like a double bass.
“Of course,” I said. “Thanks for inviting me. It’s a fascinating company you have here.”
Bishop Clarke smiled at that. He was the best dressed of the three, in a well-cut business suit, his hair short, neat, side-parted. His smile was very white, and very wide. He was the youngest of the three—in his late thirties, I’d guess. “Thank you,” he said. “We know we’re very different from the other computer companies, and we like it that way. We like to think that we see something in computers—a potential—that other people have missed.”
Father Tarnowski scowled. He was cadaverously tall and thin, with the usual dog collar and jacket, and a heavy gold class ring. His half-rim glasses flashed. He was the oldest, maybe sixty, and had a sour look that I took for habitual. “He doesn’t want the press packet, Leonard,” he said. “Let’s get to the point.” He had a broad Chicago accent like a tough-guy gangster in The Untouchables.
Bishop Clarke’s smile blinked off and on for an instant and I was overcome with the sudden knowledge that these two men did not like each other at all, and that there was some kind of long-running argument simmering beneath the surface. “Thank you, Marek, of course. Mr. Hench’s time is valuable.” Father Tarnowski snorted softly at that and the bishop pretended he didn’t hear it, but I saw Rabbi Finkel grimace at his yellow pad.
“What can I help you Reverend Sirs with today?” Reverend Sirs came more easily now, didn’t feel ridiculous at all. The three of them gave the impression of being a quarter inch away from going for each other’s throats, and the formality was a way to keep tensions at a distance.
“We need a certain kind of accountant,” the rabbi said. He’d dated the top of his yellow pad and then circled the date. “A kind of accountant who understands the computer business. Who understands computers, on a technical level. It’s hard to find an accountant like that, believe it or not, even in Silicon Valley.” I didn’t point out that Colma wasn’t in Silicon Valley.
“Well,” I said, carefully. “I think I fit that bill. I’ve only got an associate’s degree in accounting, but I’m a kind of floating CFO for half a dozen companies and I’ve been doing night classes at UCSF Extension to get my bachelor’s. I did a year at MIT and built my own computer a few years back. I program pretty well in BASIC and Pascal and I’ve got a little C, and I’m a pretty darned good debugger, if I do say so myself.”
Bishop Clarke gave a small but audible sigh of relief. “You do indeed sound perfect, and I’m told that Shlomo spoke to your references and they were very enthusiastic about your diligence and . . . discretion.”
I’d given Shlomo a list of four clients I’d done extensive work with, but I hadn’t had “discretion” in mind when I selected them. It’s true that doing a company’s accounts made me privy to some sensitive information—like when two employees with the same job were getting paid very different salaries—but I got the feeling that wasn’t the kind of “discretion” the bishop had in mind.
“I’m pretty good at minding my own business,” I said, and then, “even when I’m being paid to mind someone else’s.” I liked that line, and made a mental note about it. Maybe someday I’d put it on my letterhead. Martin Hench: Confidential CPA.
The bishop favored me with a chuckle. The rabbi nodded thoughtfully. The priest scowled.
“That’s very good,” the bishop said. “What we’d like to discuss today is of a very sensitive nature, and I’m sure you’ll understand if we would like more than your good word to rely on.” He lifted his yellow pad, revealing a single page, grainily photocopied, and slid it over the table to me. “That’s our standard nondisclosure agreement,” he said. He slid a pen along to go with it.
I didn’t say anything. I’d signed a few NDAs, but only after I’d taken a contract. This was something different. I squinted at the page, which was a second- or third-generation copy and blurry in places. I started to read it. The bishop made a disgusted noise. I pretended I didn’t hear him.
I crossed out a few clauses and carefully lettered in an amendment. I initialed the changes and slid the paper back across the table to the bishop, and found the smile was gone from his face. All three of them were now giving me stern looks, wrath-of-God looks, the kind of looks that would make a twenty-one-year-old kid like me very nervous indeed. I felt the nerves rise and firmly pushed them down.
“Mr. Hench,” the bishop said, his tone low and serious, “is there some kind of problem?”
It pissed me off. I’d driven all the way to for-chrissakes Colma and these three weirdo God-botherers had ambushed me with their everything – and – the – kitchen – sink contract. I had plenty of work, and I didn’t need theirs, especially not if this was the way they wanted to deal. This had suddenly become a negotiation, and my old man had always told me the best negotiating position was a willingness to get up from the table. I was going to win this negotiation, one way or another.
“No problem,” I said.
“And yet you appear to have made alterations to our standard agreement.”
“I did,” I said. That’s not a problem for me, I didn’t say.
He gave me more of that stern eyeball-ray stuff. I let my negotiating leverage repel it. “Mr. Hench, our standard agreement can only be altered after review by our general counsel.”
“That sounds like a prudent policy,” I said, and met his stare.
He clucked his tongue. “I can get a fresh one,” he said. “This one is no good.”
I cocked my head. “I think it’d be better to get your general counsel, wouldn’t it?”
The three of them glared at me. I found I was enjoying myself. What’s more, I thought Rabbi Finkel might be suppressing a little smile, though the beard made it hard to tell.
“Let me see it,” he said, holding his hand out.
Bishop Clarke gave a minute shake of his head. The rabbi half rose, reached across the table, and slid it over to himself, holding it at arm’s length and adjusting his glasses. He picked up his pen and initialed next to my changes.
“Those should be fine,” he said, and slid it back to me. “Sign, please.”
“Yisrael,” Bishop Clarke said, an edge in his voice, “changes to the standard agreements need to be reviewed—”
“By our general counsel,” the rabbi finished, waving a dismissive gesture at him. “I know, I know. But these are fine. We should probably make the same changes to all our agreements. Meanwhile, we’ve all now had a demonstration that Mr. Hench is the kind of person who takes his promises seriously. Would you rather have someone who doesn’t read and signs his life away, or someone who makes sure he knows what he’s signing and agrees with it?”
Bishop Clarke’s smile came back, strained at the corners. “That’s an excellent point, Rabbi. Thank you for helping me understand your reasoning.” He collected the now-signed contract from me and tucked it back under his yellow pad.
“Now,” he said, “we can get down to the reason we asked you here today.”
Check out my Kickstarter to pre-order copies of my next novel, Picks and Shovels!
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
I'm on tour with my new novel The Bezzle! Catch me next in SALT LAKE CITY (Feb 21, Weller Book Works) and SAN DIEGO (Feb 22, Mysterious Galaxy). After that, it's LA, Seattle, Portland, Phoenix and more!
Today, I'm bringing you part one of an excerpt from Chapter 14 of The Bezzle, my next novel, which drops on Feb 20. It's an ice-cold revenge technothriller starring Martin Hench, a two-fisted forensic accountant specialized in high-tech fraud:
Hench is the Zelig of high-tech fraud, a character who's spent 40 years in Silicon Valley unwinding every tortured scheme hatched by tech-bros who view the spreadsheet as a teleporter that whisks other peoples' money into their own bank-accounts. This setup is allowing me to write a whole string of these books, each of which unwinds a different scam from tech's past, present and future, starting with last year's Red Team Blues (now in paperback!), a novel that whose high-intensity thriller plotline is also a masterclass in why cryptocurrency is a scam:
Turning financial scams into entertainment is important work. Finance's most devastating defense is the Shield Of Boringness (h/t Dana Clare) – tactically deployed complexity designed to induce the state that finance bros call "MEGO" ("my eyes glaze over"). By combining jargon and obfuscation, the most monstrous criminals of our age have been able to repeatedly bring our civilization to the brink of collapse (remember 2008?) and then spin their way out of it.
Turning these schemes into entertainment is hard, necessary work, because it incinerates the respectable suit and tie and leaves the naked dishonesty of the finance sector on display for all to see. In The Big Short, they recruited Margot Robbie to explain synthetic CDOs from a bubble-bath. And John Oliver does this every week on Last Week Tonight, coming up with endlessly imaginative stunts and gags to flense the bullshit, laying the scam economy open to the bone.
This was my inspiration for the Hench novels (I've written and sold three of these, of which The Bezzle is number two; I've got at least two more planned). Could I use the same narrative tactics I used to explain mass surveillance, cryptography and infosec in the Little Brother books to turn scams into entertainment, and entertainment into the necessary, informed outrage that might precipitate change?
The main storyline in The Bezzle concerns one of the most gruesome scams in today's America: prison-tech, which sees America's vast army of prisoners being stripped of letters, calls, in-person visits, parcels, libraries and continuing ed in favor of cheap tablets that bilk prisoners and their families of eye-watering sums for every click they make:
But each Hench novel has a variety of side-quests that work to expose different kinds of financial chicanery. The Bezzle also contains explainers on the workings of MLMs/Ponzis (and how Gerry Ford and Betsy DeVos's father-in-law legalized one of the most destructive forces in America) and the way that oligarchs, foreign and domestic, use Real Estate Investment Trusts to hide their money and destroy our cities.
And there's a subplot about music-royalty theft, a form of pernicious wage theft that is present up and down the music industry supply-chain. This is a subject that came up a lot when Rebecca Giblin and I were researching and writing Chokepoint Capitalism, our 2022 book about creative labor markets:
https://chokepointcapitalism.com/
Two of the standout cases from that research formed the nucleus of the subplot in The Bezzle, the case of Leonard Cohen's batshit manager who stole millions from him and then went to prison for stalking him, leaving him virtually penniless and forced to keep touring to keep himself fed:
The other was George Clinton, whose manager forged his signature on a royalty assignment, then used the stolen money to defend himself against Clinton's attempts to wrestle his rights back and even to sue Clinton for defamation for writing about the caper in his memoir:
That's the tale that this excerpt – which I'll be serializing in six parts over the coming week – tells, in fictionalized form. It's not Margot Robbie in a bubble-bath, it's not a John Oliver monologue, but I think it's pretty goddamned good.
I'm leaving for a long, multi-city, multi-country, multi-continent tour with The Bezzle next Wednesday, starting with an event at Weller Bookworks in Salt Lake City on the 21st:
I hope you'll come out for the tour (and bring your friends)!
Between 1972 and 1978, Steve Soul (a.k.a. Stefon Magner) had a string of sixteen Billboard Hot 100 singles, one of which cracked the Top 10 and won him an appearance on Soul Train. He is largely forgotten today, except by hip-hop producers who prize his tracks as a source of deep, funky grooves. They sampled the hell out of him, not least because his rights were controlled by Inglewood Jams, a clearinghouse for obscure funk tracks that charged less than half of what the Big Three labels extracted for each sample license.
Even at that lower rate, those license payments would have set Stefon up for a comfortable retirement, especially when added to his Social Security and the disability check from Dodgers Stadium, where he cleaned floors for more than a decade before he fell down a beer-slicked bleacher and cracked two of his lumbar discs. But Stefon didn’t get a dime. His former manager, Chuy Flores, forged his signature on a copyright assignment in 1976. Stefon didn’t discover this fact until 1979, because Chuy kept cutting him royalty checks, even as Stefon’s band broke up and those royalties trickled off. In Stefon’s telling, the band broke up because the rest of the act—especially the three-piece rhythm section of two percussionists and a beautiful bass player with a natural afro and a wild, infectious hip-wiggle while she played—were too coked up to make it to rehearsal, making their performances into shambling wreckages and their studio sessions into vicious bickerfests. To hear the band tell of it, Stefon had bad LSD (“Lead Singer Disease”) and decided he didn’t need the rest of them. One thing they all agreed on: there was no way Stefon would have signed over the band’s earnings to Chuy, who was little more than a glorified bookkeeper, with Stefon hustling all their bookings and even ordering taxis to his bandmates’ houses to make sure they showed up at the studio or the club on time. Stefon remembered October of ’79 well. He’d been waiting with dread for the envelope from Chuy. The previous royalty check, in July, had been under $250. The previous quarter’s had been over $1,000. This quarter’s might have zero. Stefon needed the money. His 1972 Ford Galaxie needed a new transmission. He couldn’t keep driving it in first.
The envelope arrived late, the day before Halloween, and for a brief moment, Stefon was overcome by an incredible, unbelieving elation: Chuy’s laboriously typewritten royalty statement ended with the miraculous figure of $7,421.16. Seven thousand dollars! It was more than two years’ royalties, all in one go! He could fix the Galaxie’s transmission and get the ragtop patched, and still have money left over for his back rent, his bar tab, his child support, and a fine steak dinner, and even then, he’d end the month with money in his savings account.
But there was no check in the envelope. Stefon shook the envelope, carefully unfolded the royalty statement to ensure that there was no check stapled to its back, went downstairs to the apartment building lobby and rechecked his mailbox.
Finally, he called Chuy.
“Chuy, man, you forgot to put a check in the envelope.”
“I didn’t forget, Steve. Read the paperwork again. You gotta send me a check.”
“What the fuck? That’s not funny, Chuy.”
“I ain’t joking, Steve. I been advancing you royalties for more than three years, but you haven’t earned nothing new since then—no new recordings. I can’t afford to carry you no more.”
“Say what?”
Chuy explained it to him like he was a toddler. “Remember when you signed over your royalties to me in ’76? Every dime I’ve sent you since then was an advance on your future recordings, only you haven’t had none of those, so I’m cutting you off and calling in your note. I’m sorry, Steve, but I ain’t a charity. You don’t work, you don’t earn. This is America, brother. No free lunches.”
“After I did what in ’76?”
“Steve, in 1976 you signed over all your royalties to me. We agreed, man! I can’t believe you don’t remember this! You came over to my spot and I told you how it was and you said you needed money to cover the extra horns for the studio session on Fight Fire with Water. I told you I’d cover them and you’d sign over all your royalties to me.”
Stefon was briefly speechless. Chuy had paid the sidemen on that session, but that was because Chuy owed him a thousand bucks for a string of private parties they’d played for some of Chuy’s cronies. Chuy had been stiffing him for months and Stefon had agreed to swap the session fees for the horn players in exchange for wiping out the debt, which had been getting in the way of their professional relationship.
“Chuy, you know it didn’t happen that way. What the fuck are you talking about?”
“I’m talking about when you signed over all your royalties to me. And you know what? I don’t like your tone. I’ve carried your ass for years now, sent you all that money out of my own pocket, and now you gotta pay up. My generosity’s run out. When you gonna send me a check?”
Of course, it was a gambit. It put Stefon on tilt, got him to say a lot of ill-advised things over the phone, which Chuy secretly recorded. It also prompted Stefon to take a swing at Chuy, which Chuy dived on, shamming that he’d had a soft-tissue injury in his neck, bringing suit for damages and pressing an aggravated-assault charge.
He dropped all that once Stefon agreed not to keep on with any claims about the forged signature; Stefon went on to become a good husband, a good father, and a hard worker. And if cleaning floors at Dodgers Stadium wasn’t what he’d dreamed of when he was headlining on Soul Train, at least he never missed a game, and his boy came most weekends and watched with him. Stefon’s supervisor didn’t care.
But the stolen royalties ate at him, especially when he started hearing his licks every time he turned on the radio. His voice, even. Chuy Flores had a fully paid-off three-bedroom in Eagle Rock and two cars and two ex-wives and three kids he was paying child support on, and Stefon sometimes drove past Chuy Flores’s house to look at his fancy palm trees all wrapped up in strings of Christmas lights and think about who paid for them.
ETA: Here's part two!
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
Picks and Shovels is a new, standalone technothriller starring Marty Hench, my two-fisted, hard-fighting, tech-scam-busting forensic accountant. You can pre-order it on my latest Kickstarter, which features a brilliant audiobook read by Wil Wheaton.
This week, I'm serializing the first chapter of my next novel, Picks and Shovels, a standalone Martin Hench novel that drops on Feb 15:
The book is up for presale on a Kickstarter that features the whole series as print books (with the option of personalized inscriptions), DRM-free ebooks, and a DRM-free audiobook read by Wil Wheaton:
Rivka Goldman was the only woman in Sales Group One, this being the group that serviced and supported synagogues and their worshippers. She’d traveled all around the country, sitting down with men who owned garment factories, grocery stores, jewelry stores, delis, and other small businesses, training their “girls” in the use of the Fidelity system. It could handle business correspondence, company books, payroll, and other functions that used to be handled by four or five “girls”—who could all be replaced with just one.
Rivka was the only woman, and often it wasn’t she who made the sale, because the men who owned these businesses talked to other men. It was her male colleagues in Sales Group One who closed those sales and pocketed the commissions, but Rivka never complained.
“She was very good at it,” the rabbi told me. “She had a knack for computers, and for explaining them. The girls she trained, they learned. When they had troubles, they wanted to talk to her.”
Sister Maria-Eva Fernandez led a very large, all-woman team that ran mostly autonomously within Sales Group Two, a group that exclusively serviced parochial schools across the U.S., with a few customers in Central America. She was a product of these schools—she’d graduated from Christ the King in Denver and gone straight from there into the order, doing some student teaching before finding her way to Fidelity Computing via an internal talent search that filtered down to the convent from the archdiocese.
Like Rivka, Sister Maria-Eva was a natural: she could patiently train school administrators, their secretaries, department heads, and even individual teachers on the use of the Fidelity system. A couple of schools—fat with money from wealthy patrons—had bought entire classrooms’ worth of machines, creating programming labs for ambitious high-schoolers, and they were universally a success.
“We valued her, we praised her, we sent her to the national sales conference to lead workshops and share her expertise,” Father Marek said. “She was a star.” He spat the word.
Elizabeth Amelia Shepard Taylor didn’t have to go on a mission, but there was never any question but that she would. Her family had been prominent in the Church of Jesus Christ of Latter-day Saints for over a century, and, as the eldest of eleven kids, she had a familial duty to set an example.
She had hoped for a posting in Asia—she’d studied Cantonese and Japanese in high school—but instead she drew San Jose, California. She staffed the Mission House, helping the boys who knocked on doors all day, serving as den mother, big sister, and the object of innumerable crushes.
She’d found a women’s computing club via a notice at the local library and had taken turns with four other women—two her age, and two retirees—prodding at a pair of Commodore PET computers, learning BASIC. Her letters home to her family were filled with the excitement of discovery and mastery, the esoteric world of assembly language that she’d dived into with the help of books and magazines from the library.
When her father heard that Fidelity was recruiting, he wrote her a letter. The same day she’d received it, she’d written a letter to Fidelity Computing Ltd., typing it up on the used ZX80 she’d bought at a swap meet (“for the Mission House”). It arrived at Fidelity in a #10 envelope, three neatly printed pages with the rough edges of fanfold paper that had had its perforations separated. The last page was all code examples.
She was promised a job by return post, starting the day she finished her mission, and she never ended up going back to Salt Lake City—just got a Caltrain train to the Daly City station and met with a Bishop Clarke’s personal assistant, a young man named John Garn who had done his mission in Taipei and chatted with her the whole way to the office in Taiwanese, which she laboriously parsed into Cantonese.
“She whipped Sales Group Three into a powerhouse,” Bishop Clarke said, with a sad shake of his head. “We went from last to first in under a year. Outsold the other two divisions combined, and we were on track to doubling this year.”
The three women had met at the annual sales conference, a huge event that took over the Fort Mason Center for a long weekend. Most of the event was segregated by sales group, but there were plenary sessions, mixers, and keynote addresses from leading sales staff that helped diffuse the winningest tactics across the whole business.
“We think they met in a women’s interfaith prayer circle,” Rabbi Finkel said. Father Marek made another of his disgusted grunts, which were his principal contributions to the conversation. Rabbi Finkel inclined his head a little in the priest’s direction and said, “Not everyone agreed that they were a good idea at first, but the girls loved them, and they created bonds of comity that served them well.”
“We don’t have a lot of turnover,” Rabbi Finkel said. “People like working here. They do well, and they do good. People from our faith communities sometimes feel like the future is passing them by, like their religion is an anchor around their necks, keeping them stuck in the past. A job here is a way to be faithful and modern, without sacrificing your faith.”
The bishop nodded. “When they turned in their resignation notices, of course we took notice. As Rabbi Finkel says, we just don’t get a lot of turnover. And of course, these three girls were special to us. So we took notice. I met with Elizabeth myself and asked her if there was anything wrong, and she refused to discuss it. I asked her what she did want to discuss and she went off on these wild tangents, not making any sense. I wrote a letter to her father, but I never heard back.”
“Rivka is a good girl,” the rabbi said. “She told me that she still loved God and wanted to live a pious, modest life, but that she had ‘differences’ with the teachings. I asked her about these ‘differences,’ but that was all she could say: ‘differences, differences.’ What’s a difference? She wants to uncover her hair? Eat a cheeseburger? Pray with men? She wouldn’t say.”
Father Marek cleared his throat, made a face, glared. “When Sister Maria-Eva ignored my memo asking her to come see me, I called her Mother Superior and that’s when I discovered that she’d left the order. Left the order! Of course, I assumed there was a man involved, but that wasn’t it, not according to her Mother Superior. She had taken new orders with a . . . fringe sect. It seemed she was lost to us.”
Check out my Kickstarter to pre-order copies of my next novel, Picks and Shovels!
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
I'm on tour with my new novel The Bezzle! Catch me next in SALT LAKE CITY (Feb 21, Weller Book Works) and SAN DIEGO (Feb 22, Mysterious Galaxy). After that, it's LA, Seattle, Portland, Phoenix and more!
Today, I'm bringing you part two of this week's serialized excerpt from The Bezzle, my new Martin Hench high-tech crime revenge thriller:
Though most of the scams that Hench – a two-fisted forensic accountant specializing in Silicon Valley skullduggery – goes after in The Bezzle have a strong tech component, this excerpt concerns a pre-digital scam: music royalty theft.
This is a subject that I got really deep into when researching and writing 2022's Chokepoint Capitalism – a manifesto for fixing creative labor markets:
https://chokepointcapitalism.com/
My co-author on that book is Rebecca Giblin, who also happens to be one of the world's leading experts in "copyright termination" – the legal right of creative workers to claw back any rights they signed over after 35 years:
https://pluralistic.net/2021/09/26/take-it-back/
This was enshrined in the 1976 Copyright Act, and has largely languished in obscurity since then, though recent years have seen creators of all kinds getting their rights back through termination – the authors of The Babysitters Club and Sweet Valley High Books, Stephen King, and George Clinton, to name a few. The estates of the core team at Marvel Comics, including Stan Lee, just settled a case that might have let them take the rights to all those characters back from Disney:
Copyright termination is a powerful tonic to the bargaining disparities between creative workers. A creative worker who signs a bad contract at the start of their career can – if they choose – tear that contract up 35 years later and demand a better one.
Turning this into a plot-point in The Bezzle is the kind of thing that I love about this series – the ability to take important, obscure, technical aspects of how the world works and turn them into high-stakes technothriller storylines that bring them to the audience they deserve.
If you signed something away 35 years ago and you want to get it back, try Rights Back, an automated termination of tranfer tool co-developed by Creative Commons and Authors Alliance (whose advisory board I volunteer on):
https://rightsback.org/
All right, onto today's installment. Here's part one, published on Saturday:
It was on one of those drives where Stefon learned about copyright termination. It was 2011, and NPR was doing a story on the 1976 Copyright Act, passed the same year that was on the bottom of the document Chuy forged.
Under the ’76 act, artists acquired a “termination right”— that is, the power to cancel any copyright assignment after thirty-five years, even if they signed a contract promising to sign away their rights forever and a day (or until the copyright ran out, which was nearly the same thing).
Listening to a smart, assured lady law professor from UC Berkeley explaining how this termination thing worked, Stefon got a wild idea. He pulled over and found a stub of a pencil and the back of a parking-ticket envelope and wrote down the professor’s name when it was repeated at the end of the program. The next day he went to the Inglewood Public Library and got a reference librarian to teach him how to look up a UC Berkeley email address and he sent an email to the professor asking how he could terminate his copyright assignment.
He was pretty sure she wasn’t going to answer him, but she did, in less than a day. He got the email on his son’s smartphone and the boy helped him send a reply asking if he could call her. One thing led to another and two weeks later, he’d filed the paperwork with the U.S. Copyright Office, along with a check for one hundred dollars.
Time passed, and Stefon mostly forgot about his paperwork adventure with the Copyright Office, though every now and again he’d remember, think about that hundred dollars, and shake his head. Then, nearly a year later, there it was, in his mailbox: a letter saying that his copyright assignment had been canceled and his copyrights were his again. There was also a copy of a letter that had been sent to Chuy, explaining the same thing.
Stefon knew a lawyer—well, almost a lawyer, an ex–trumpet player who became a paralegal after one time subbing for Sly Stone’s usual guy, and then never getting another gig that good. He invited Jamal over for dinner and cooked his best pot roast and served it with good whiskey and then Jamal agreed to send a letter to Inglewood Jams, informing them that Chuy no longer controlled his copyrights and they had to deal with him direct from now on.
Stefon hand-delivered the letter the next day, wearing his good suit for reasons he couldn’t explain. The receptionist took it without a blink. He waited.
“Thank you,” she said, pointedly, glancing at the door.
“I can wait,” he said.
“For what?” She reminded him of his boy’s girlfriend, a sophomore a year younger than him. Both women projected a fierce message that they were done with everyone’s shit, especially shit from men, especially old men. He chose his words carefully.
“I don’t know, honestly.” He smiled shyly. He was a good-looking man, still. That smile had once beamed out of televisions all over America, from the Soul Train stage. “But ma’am, begging your pardon, that letter is about my music, which you all sell here. You sell a lot of it, and I want to talk that over with whoever is in charge of that business.”
She let down her guard by one minute increment. “You’ll want Mr. Gounder,” she said. “He’s not in today. Give me your phone number, I’ll have him call.”
He did, but Mr. Gounder didn’t call. He called back two days later, and the day after that, and the following Monday, and then he went back to the office. The receptionist who reminded him of his son’s girlfriend gave him a shocked look.
“Hello,” he said, and tried out that shy smile. “I wonder if I might see that Mr. Gounder.”
She grew visibly uncomfortable. “Mr. Gounder isn’t in today,” she lied. “I see,” he said. “Will he be in tomorrow?”
“No,” she said.
“The day after?”
“No.” Softer.
“Is that Mr. Gounder of yours ever coming in?”
She sighed. “Mr. Gounder doesn’t want to speak with you, I’m sorry.”
The smile hadn’t worked, so he switched to the look he used to give his bandmates when they wouldn’t cooperate. “Maybe someone can tell me why?”
A door behind her had been open a crack; now it swung wide and a young man came out. He looked Hispanic, with a sharp fade and flashy sneakers, but he didn’t talk like a club kid or a hood rat—he sounded like a USC law student.
“Sir, if you have a claim you’d like Mr. Gounder to engage with, please have your attorney contact him directly.”
Stefon looked this kid up and down and up, tried and failed to catch the receptionist’s eye, and said, “Maybe I can talk this over with you. Are you someone in charge around here?”
“I’m Xavier Perez. I’m vice president for catalog development here. I don’t deal with legal claims, though. That’s strictly Mr. Gounder’s job. Please have your attorney put your query in writing and Mr. Gounder will be in touch as soon as is feasible.”
“I did have a lawyer write him a letter,” Stefon said. “I gave it to this young woman. Mr. Gounder hasn’t been in touch.”
Perez looked at the receptionist. “Did you receive a letter from this gentleman?”
She nodded, still not meeting Stefon’s eye. “I gave it to Mr. Gounder last week.”
Perez grinned, showing a gold tooth, and then, in his white, white voice, said, “There you have it. I’m sure Mr. Gounder will get back in touch with your counsel soon. Thank you for coming in today, Mr.—”
“Stefon Magner.” Stefon waited a moment, then said, for the first time in many years, “I used to perform under Steve Soul, though.”
Perez nodded briskly. He’d known that. “Nice to meet you, Mr. Magner.” Without waiting for a reply, he disappeared back into his office.
ETA: Here's part three!
If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
