The Top 5 Most Egregious Expense Report Abuses
Lawyers have the bad rep for expensing ridiculous charges to their clients . However, a close look at some expense reports abuses by politicians and executives show that lawyers are not alone, reports Huffington Post.
The takeaway with these individuals appears to be that when someone else is footing the bill, you should try to get away with as much as possible.
Here are the top five most egregious expense report abuses from haircuts to strip clubs to outright fraud:
- James Kwon. A director at the government agency Port of Oakland allegedly spent $4,537 at an establishment called D. Houston Inc. Upon further investigation, D. Houston Inc. turned out to be the corporate name of Houston-based strip club Treasures. Kwon reportedly had drinks and a dinner reception at the strip club for clients. Kwon has been suspended from his position.
- John Edwards. Prior to being disgraced for a different scandal, Edwards made news for spending $800 on two haircuts. It was reported that Edwards wanted the best haircuts in the areas he was in. It has not been confirmed if Edwards' hair was in fact the "best," but the haircuts were certainly expensive.
- Michael Mclntyre. The Morgan Stanley broker was fired in 2009 for allegedly submitting false dinner expense reports totaling $4,109. The broker argued that he was entitled to the money as part of his compensation package and not as reimbursement for allowable business expenses. Nevertheless, he was charged with misappropriating funds and fired.
- Sarah Palin. Palin spent $150,000 on a makeover as a vice-presidential candidate in 2008. This included $50,000 spent at Saks Fifth Avenue, $75,000 at Neiman Marcus, plus other items from high-end department stores like Barney's New York and Bloomingdale's, writes the Huffington Post. Palin disputes the tab and says she returned the clothes.
- Larry B. Seabrook. The former New York City Councilman racked up a $175 tab. While this amount does not appear high, the tab was for a bagel and a soda. Seabrook was later convicted of corruption for siphoning around $1.5 million to his family, friends and mistress.
Related Resources:
- How to Deduct Coffee, Donuts as Biz Expenses (FindLaw's Free Enterprise)
- Casino Losses Aren't Deductible Biz Expenses, Judge Tells Gambler (FindLaw's Legally Weird)
- Tax Attorney Deducts Sex Workers as Medical Expense (FindLaw's Legally Weird)