Charging it at Pokertek…
Three weeks ago, we footnoted about the situation with Pokertek’s (PTEK) CFO, Chris Daniels, who had been placed on administrative leave following an independent investigation into use of the company’s credit cards.
On Friday, Daniels, 34, who had been CFO since July 2004, was shown the door, according to this 8K the company filed on Monday. The filing notes that under the separation agreement, Daniels is required to “facilitate the transfer of 244,000 frequent flyer miles to the company” which has to be one of the stranger clauses in a separation agreement that I’ve ever run across.
It also seems to indicate that Daniels was using the corporate credit card and banking the miles for some future trip. Assuming that Pokertek’s credit cards works like most other credit cards, $1 dollar in charges equals 1 mile, which makes for a lot of charging and a shocking lack of oversight. Then again, which accounting clerk is going to question the CFO’s spending habits before processing the expense report? And, given that this was an issue with the CFO, it seems like there might be other numbers that are worthy of a closer look here.
Daniels is also required to reimburse the company for $6,000 in charges he made, though the company doesn’t say for what. Oh, and there’s also the standard “without admission of liability” clause.