Robert A.McCormick
Chairman and Chief Executive Officer
Savvis Telecommunications
Posted on 10/25/2005 7:26:05 AM PDT by Calpernia
NEW YORK (Reuters) - Savvis Communications 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 centre 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.
That must have been SOME lapdance.
He could have saved a little by going at lunch for the free buffet.
"Late on Monday evening?" When was closing time?
Face-saving move by the company.
His leave will end after the publicity dies down.
(The fool was on the cover of the NY Daily News for two days last week.)
Jeff Skilling, former CEO of Enron, pulled this stunt many a time.
Robert A.McCormick
Chairman and Chief Executive Officer
Savvis Telecommunications
Do we not have rules on this board? Are we mere savages? What about pictures?
I think the company challenging the bill would be wise to investigate every single "employee" of the club that's involved in this,along with the owners (can you say "Mafia"?)
CEO=15 to 50 million a year...Pocket change to him...
I don't get the need to business clients out to, as we Texans would say, a T*tty Bar. A bunch of doofusses on a bachelor party is one thing, but these guys who hang out at strip clubs look pathetic.
What part of business ethics did sleep through, anyone, anyone? Bueller?
Uh...somehow I just can't get to sleep... By the way, who's at the helm???
I agree.
Skilling 'pulled this stunt' many times? Going to strip clubs? Giving big tips? I don't remember reading about this. Could you elaborate?
Sorry, but you're wrong.
This happens kind of often!
It's how clubs get rich.
Man Sues Over $129,626 Strip Joint Tab
I don't think I'm aloud to post pictures of Scores.
Here:
http://blogs.indiewire.com/indiewendy/archives/scores.jpg
>>>>That strip club had better have signed receipts for every single charge because,without them,nobody in their right mind will believe that anyone can run up a quarter of a million dollar bill in a few hours.
Read the article again. Most of the money came from time in the VIP room.
He better of had a "happy ending" for that lap dance!
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