Companies often give out credit cards to their employees which can be used to deal with prospective clients. Now this may include your regular wining and dining and perhaps no eyebrows would be raised. However as this IT company’s CEO found out that if you go beyond wining and dining then there are severe consequences.
A CEO of US-based tech startup has allegedly been fired after he spent vast sums of money at strip clubs. According to a report by Bloomberg, Eric Gilmore, CEO of Turvo spent over $75,000 (K1,059,921) at “adult entertainment venues” using company credit cards. Another report by Business Insider said that the money was spent over a period of three years. The expenses came to light when the company’s chief financial officer reviewed company credit card expense reports. The total expenses incurred by Gilmore on the company’s credit card were in excess of $1,25,000 (K1,766,523).
Gilmore filed a case against Turvo in August but interestingly he didn’t deny claims against the expenses. Instead, he had filed the case saying that the company didn’t follow the proper procedure in sacking him. The case, as per reports, was settled in September. Gilmore meanwhile remains on the company’s board of directors and is also the biggest shareholder of the company.
Turvo was co-founded by Gilmore in 2014 as platform for supply chain management and was reportedly valued at $435 million.
Instances like these are not that common but last year it came to light that a Chinese smartphone company’s CEO had lost billions of dollars in gambling. In December 2018, it was reported that Chinese smartphone company’s CEO had lost over $1.4 billion while gambling in a casino. The Chinese company’s chairman Liu Lirong admitted that he had gambled the money when it was announced that the company had filed for bankruptcy. IT CEO fired after allegedly spending over $75,000 at strip clubs.