Ex-CEO blew $445,000 in company money on lavish lifestyle, escorts — even giving

avatar for jackslash
jackslash
Detroit strip clubs
Finally a CEO who is not boring.

"In late 2007, Grimstad and another iPayment employee visited the Spearmint Rhino strip club in Las Vegas, where they “became acquainted with an employee of that establishment who also worked as a personal escort,” papers charge.

Grimstad offered the escort $4,000 for “certain sexual activities,” according to the suit.

The pair established a bond, and Grimstad hired the prostitute as an employee in 2008 “despite lacking any apparent qualifications for the job for which she was hired,” papers read."

http://www.nydailynews.com/new-york/nyc-…

9 comments

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avatar for Dominic77
Dominic77
8 years ago
It saws he is a co-founder. So he built and organization and put women** on the payroll. Well done, sir. Well done.

**the escort and the escort's mother.
avatar for HoHoHoDetwaah
HoHoHoDetwaah
8 years ago
Wow. The guy was golfing 100 times a year. Basically, twice a week. Dropping big bucks of company funds at strip clubs, had a hot stripper working for him, who he was probably boning in the office and at hotels nearby, and even had a pretty wife. He was living the high life. Will probably wind up in Fed Pen now though. I've heard of ipayment. It's funny because their website says they are a pillar of integrity, etc., etc.
avatar for shailynn
shailynn
8 years ago
Man what an amateur, last time I was at Rhino I only had about $700 tied up in an OTC session by the end of the night.
avatar for etsutwigg222
etsutwigg222
8 years ago
He was putting women to work in high paying positions. Seems that the liberals and feminist groups should be marching for his release!!!
avatar for vincemichaels
vincemichaels
8 years ago
Give em time, women will march for anything these days.
avatar for JohnSmith69
JohnSmith69
8 years ago
I love stories about guys who pay more than I do for sex. It makes me feel just a tiny bit less pathetic.
avatar for pensionking
pensionking
8 years ago
I hate stories about guys paying more than I pay -- fucking curve breakers! LOL
avatar for san_jose_guy
san_jose_guy
8 years ago
One question I would ask was, how closely held were that company's shares? If very closely held, who is being defrauded, except maybe for the tax man.

Now if it were public, no you cannot do that.

Jim and Artie Mitchell had put their mother on the payroll, as Corporate Astrologer.

www.nydailynews.com/new-york/nyc-crime/e…

Well, someone fired him, and someone filed the lawsuit. So he must not have singular control of the company. And also, one could never get away with doing things quite his way.

SJG
avatar for Corvus
Corvus
8 years ago
Sounds like he spent $445,000 having a great time, and just wasted the rest of his money.
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