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-NEW YORK, Oct 24 (Reuters) - Savvis Communications Corp. (SVVS.O: Quote, Profile, Research) said on Monday it had placed its chief executive on unpaid leave and will launch an internal probe related to a credit card company lawsuit alleging he was two years late in paying $241,000 in charges at a Manhattan strip club.
The telecommunications carrier said Robert McCormick was placed on unpaid leave effective Monday, pending the outcome of the investigation. Jack Finlayson, president and chief operating officer, has been appointed acting CEO. The lawsuit, brought by American Express against McCormick and Savvis last week, charges that the two were late in paying charges rung up on McCormick's corporate credit card at Scores, a trendy New York strip club. Savvis said earlier on Monday that McCormick did not seek reimbursement for the $241,000 in charges and that the St. Louis-based company has not made any payment to American Express related to the charges. The tab is at the center of a lawsuit filed last week by American Express. Savvis has said it was responding to the suit. American Express claimed that McCormick rang up the charges in a single visit to the club, while entertaining a small group of business acquaintances. The bulk of the charges were for tips that McCormick gave to lap dancers who were entertaining his party in a VIP room known as the President's Club, according to Scores spokesman Lonnie Hanover. Savvis also said it had retained law firm Sullivan & Cromwell LLP, and that, upon completion of its investigation, the board's audit committee would recommend appropriate action to the full board. "Savvis officials do not intend to comment further on this matter pending completion of the investigation," the company said in a statement issued late on Monday evening. McCormick and a company spokesman did not return earlier calls seeking comment. http://today.reuters.com/business/ne...&imageid=&cap= I call BS on Scores. |
It's hard to say, I read in a different article that for every large expenditure ($10k was the example given), the customer must get on the phone with his credit card and approve the amount, and that everything is well documented.
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Here was an interesting quote on another forum in which I read this.
Quote:
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if dubs' fact are correct, scores am a disgrace.
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That is why I am going to Showgirl III tomorrow. [img]smile.gif[/img] Good times never cease from taking place there.
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i wish there were stripclubs where i live but the nearest ones are in Bangkok! Yeeeha~!
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Wow! I am sorry to hear that man. There is nothing like sitting with buddies, drinking beer, and getting titties rubbed in your face.
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Those are the actual costs of drinks at Scores!, no doubt
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Maybe they picked up the tab for everyone in the club for that night?
-UB |
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