negotiationshadsouredbutsaidshehadmorecontracts
comingthatwouldoffsetthelostrevenue.Overtime,Pierce
raised$270millionfromCIPandFrenchinvestmentbank
NatixisSA.“Thereweresignsthingswerescrewy,”says
a Quintillionbacker.“Youwantedtobelieveinthegood
shewasdoing.Howmanypeoplewereputtingtogether
billion-dollarprojectsinAlaska?”A Natixisspokeswoman
declinedtocomment.
Thisperceptioncontributedtoanaurora-likeglowaround
Pierce,whoseearnest-soundingpitchforclosingthedigital
divideinAlaskamadehera staroftelecomconferences.In
August2016,GovernorBillWalkerjoinedherata mediaevent
intheAleutianIslands.FederalCommunicationsCommission
memberAjitPai,who’ssincebecometheFCCchairman,even
flewtoAlaskatotourUtqiagvik,wherehemetPierceandlater
appointedherchairofanadvisorycommitteeonruralbroad-
band.Paideclinedtocomment.
Still,the mountingpressures begantotakea tollon
Quintillion’sCEO.FriendsassumedPierce’ssevererespira-
toryissues,whichtheysayledtorepeatedcasesoffluand
otherillnesses,werea resultofthestressesof14-hourdays
andfrequenttravel.Laterthey’dattributetheseproblemsto
cripplinganxiety,whichseemedtokeepherforeveronthe
brinkofa breakdown.
During thistime,Pierce’sincomeaveragedatleast
$146,000peryearinsalaryandotherbenefits,according
topublicrecords.Sheandherhusband,William,livedin
a four-bedroomhome.On
the side, they ran a con-
struction business out of a
garage-turned-office near
Quintillion’s Anchorage
headquarters. Quintillion
operated in the former
garage, too, before mov-
ing into a brick building
that could double as a rural
post office, recall three peo-
ple familiar with the matter.
Elizabeth’s assistant sat in a
hallway near Bill’s truck.
Unusual financing sup-
ported the family’s lifestyle.
In 2013, Pierce mentioned
an opportunity to invest in
Quintillion to an old work
acquaintance, Julian Jensen,
who says he thought the proj-
ect was “strategically viable.”
In May that year, accord-
ing to court documents, he
wrote her the first of three
checks totaling $325,000, a
third of his savings.
Pierce deposited the
initialcheck,for$100,000,intoherpersonalbankaccount,
courtdocumentsindicate.Thatsameday,thesedocuments
show,sheestablishedherownretirementplanatWellsFargo
& Co.andtransferred$30,500intotheaccount.Shealsoused
Jensen’sfundstopayoffherandBill’screditcardbillsand
mortgage,coverhouseholdexpenses,andinvest$10,000
intotheirconstructionbusiness.Atonepoint,shecuttheir
sona $500check,jotting“justbecause”inthememoline.
Piercedidallocatea portionofJensen’scapitaltoQuintillion:
Prosecutorslaterclaimedshe“loaned”$43,300tothecom-
panyandspent$28,000toacquiresharesinherownname.
Bytheend,therewas$49leftinherWellsFargoaccount.
(Athertrial,Piercedeniedopeninga retirementaccount
withJensen’sinvestments,whichshesaidshemostlyused
forQuintillion.)
In2015,Piercefoundanothersourceofincomeaftera
Quintillionworkerandformercoffeeshopbarista,EricaBlair,
inquiredaboutinvesting.(Blair’srealnamewasredactedin
courtfilings.ShespoketoBloombergBusinessweekonthecon-
ditionthatshebeidentifiedonlybya pseudonym.)Piercetold
herthatif shecouldcomeupwith$40,000,thatwouldbuy
her 225 Quintillionshares.Blaircobbledtogetherthecash
fromfamily,hopingit wouldturnintoa nesteggforherkin.
PiercedepositedthosefundsintoherWellsFargoaccount,
accordingtocourtdocuments.
The followingyear,Quintillionkickedoffconstruc-
tionofitssubseacablenetwork,partneringwithAlcatel
SubmarineNetworksLtd.
But the seabed was stiffer
than expected, and weather
conditions quickly wors-
ened. Pierce had to cease
operations and delay the
project a year.
The costly setback made
investors skittish. But when-
ever Jensen and Blair would
ask for shareholder documen-
tation, Pierce convinced them
their investments were solid.
She gave Jensen a spread-
sheet showing his shares had
gained in value. Murphy and
the CIP team also pressed
for greater insight into
Quintillion’s contracts, but
Pierce insisted that Alaskans
simply didn’t trust outsiders
and that it would be better for
her to keep managing every-
thing alone.In early 2017, a Quintillion
employee prepared to
send out invoices for65Bloomberg Businessweek October 14, 2019
Internet cables
mapped to Utqiagvik
customers’ addresses