Red Swallow Freight was a company with a near-monopoly on international trade stationed in Borrel, the former capital of Pemembras. It was a massive part of the local economy, bringing in millions of aunders in profits to Borrel a year. It was owned by Recnor Morceff, who was the Merchant of International Trade on the Merchant’s Council, and therefore one of the rulers of Pemembras.
In spring of 768, Morceff’s son and heir Jaisom Morceff was caught in a magical explosion. The nineteen-year-old son was supposedly sent to doctors outside of Themble to treat his failing eyesight. Morceff’s niece, Genaia Morceff, became the new heir apparent.
However, in spring of 769, Red Swallow Freight was accused of money laundering, smuggling, and tax embellishment and invasion through an anonymous source. This accusations came with substantial evidence and proved to be true. As a major member of the Merchant’s Council, Morceff faced massive backlash filled with hypocrisy as the other Merchants saw an opportunity to take him down.
By the end of the year, Red Swallow Freight was forced to file for bankruptcy. To avoid a trial and the following jail sentence, Recnor Morceff fled Themble. His heir, Genaia Morceff, was proven mostly innocent, and after paying considerable fines, was cleared of all charges.
The fall of Red Swallow Freight was a considerable hit to the Pemembran economy, as the near-monopoly revealed the illegal activities of several other companies. Each Merchant did their best to defend their own illegal dealings while throwing the other members under the bus, leading to complete chaos. The economy tanked in all sectors and chaos ruled without a strong oligarchy topped by a useless figurehead king.
It is believed that the fall of Red Swallow Freight and the resulting weakening of Pemembras’ economy was a major reason that the Pemembran government failed to prevent the Black King’s invasion in 772 and lost the Second Maithan War in 774.