Friday, October 21, 2005

A pathetic report on so many levels

Some people have more credit than sense.

American Express is suing the CEO of a communications company for payment of $241,000 worth of disputed credit card charges at a Manhattan topless club.

American Express says in papers filed in state court that Savvis Inc. chief executive officer Robert A. McCormick was in the club Scores in October 2003 with at least three other men.

After McCormick got the $241,000 corporate credit card bill, Savvis called American Express and complained that some of the charges were fraudulent, the lawsuit says. The communications company said its chief disputed all but about $20,000, according to the lawsuit.

"We firmly believe that Mr. McCormick was the victim of fraud," said Deena Williamson, Savvis's deputy general counsel. She declined to comment further.

If that is the case, Savvis and Mr. McCormick's argument is not with the company's credit card provider but with the club. Even a junior high school student could figure that out. The club says it goes through an elaborate procedure, including fingerprinting of its customers, when a bill exceeds $10,000. Apparently even a lap dance there can cost that much.

Part of McCormick's woes stem from the fact that he may have ignored AmEx's bill and did not bother to respond in writing for several months.

Court papers say American Express asked McCormick several times to provide in writing his basis for calling the charges fraudulent. McCormick failed to respond, and when he was billed again he once again objected to the charges, the lawsuit says.

American Express says McCormick finally responded in writing in September 2004, reiterating that some charges on the Scores bill were bogus, the lawsuit says.

Scores has been paid in full, American Express's court papers say, while neither Savvis nor McCormick has paid any of the charges. Failure to pay is a violation of the American Express corporate credit card agreement, court papers say.

Some judgmental people might conclude that a CEO who has no better sense than to frequent an expensive hootchie-kootchie club would be a candidate for a pink slip, even if the bill was only $20,000 (the undisputed amount) instead of $241,000.

We would be among them.

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