Company says he submitted falsified financial reports to hide the relationship. What do financial reports have to do with a relationship? This makes no sense. Next step should be SEC investigating what the board is saying (or not saying)>
Do you remeber the $100,000's that was reported for the Mark Hurd family meals that was sweeped aways a few years back? This has been going on for a while. The guy is a 5' jerk with a Napolian complex.
He should not have submitted any receipts for dinner for this women. Just like any employee should not submit receipts for personnel expenses, expecially if the personnel expenses are ones that might raise questions. Why not submit receipts for drug deals, casino losses, personal legal issues, DWI fines, a hitman, etc.?
, is a hooker tax deductible as a business expense?
Yes, depending on the busihess case. If you are recruiting for the Bunny Ranch, for instance, or auditioning for a porn film. Actually, it's no different than hiring a bellhop to carry your lugage or payig a hotel to launder your your underware. If you can make a business case, you're golden.
I don't have any more facts than you do, but the woman was a contractor. One conceivable scenario is that she submitted invoicess to the company for her efforts off-site and he endorsed them. When the spot-checkers couldn't confirm what goods had been delivered and disallowed the invoice(s), an investigation followed. What makes the matter more significant than the trivial amounts involved is that a tax audit could have revealed the mislabeling of the expense, leading to a much more intensive audit.
I agree with a previous poster: I would much rather have an honest but incompetent CEO at HPQ than a competent dishonest one, but then again I own Big Blue.
<<We are not getting the true story. The guy made $10M or $20M per year. He did not need to mess with false expense reports for a few kilobucks. There is something we are not clever enough to figure yet without some more clues. They will surely come out. >>
These guys think that they are god on earth and a hubris takes over. They feel that a bed of roses should cushion their every step they should be greeted with garlands of flowers and every check should be picked up by soneone else. A little humility is not a bad thing. They should try it sometime.
As one SeekingAlpha.com commenter suggested, he could have paid for his mistress hotel and meals expenses as part of his travel expense claim. Don't know why he did what he did. If he were smart, and supposedly CEO should be crooked and smart, he would have let his mistress pay for her room and meals and hand cash to her, like the Mifia always do...
That would have drawn more attention to the affair. If he was trying to hide it, he would have paid the expenses out of his own pocket. What he did was file false reports because he was greedy and too stupid to think that would link him with the affair. Probably not the brainpower you want running a company.