[napscoordinator]

Then why are owners getting arrested for embezzlement all the time? I am not saying that paying a hotel room for one of the employees is embezzlement but it gets sticky. What about the employees that are not getting free housing? Shouldn't they get something extra too? That is out and out favoritism. We will see how this plays out but he could have a lawsuit on his hands if an employee wants to make an issue out of it.

[Bob]

Then why are owners getting arrested for embezzlement all the time?

There's a huge difference between the owner of a privately-held company, such as this sutuation, and the "owners" (I think you meant officers) of publicly-held companies. In this case - his company, his money. In the other - "their" company, the stockholders' money.

[slowhandluke]

You can't embezzle from yourself.

You can embezzle if you are only one of the owners of a partnership.

Newspapers might confuse embezzlement with tax fraud, since both involve taking money from the till without the right paperwork.

Favoritism is legal. Unless, of course, there is a union to make sure the only basis for raises etc. is seniority.