Wednesday, June 13, 2018

RCI Gives CEO's Relative a Loan, and He Defaults!


Loan to Relative of CEO: In 2005, RCI Hospitality filed a debt collection case against Patrick Langan, a relative of the CEO (RCI v Langan, Patrick). Why is the company giving loans to relatives of the CEO? How many other loans are out there? It would be highly unlikely that the first and only loan to a relative ended in default and a legal case.






Car Allowances: RIck's Cabaret gives its executives car allowances, including an egregiously high $55,140 for its CEO last year. It was hard to fathom how the number could be so high until I came across this additional disclosure in the 2014 10-K:  “Mr. Langan and his family also received the use of certain automobiles in each year.“  

Apparently the CEO’s relatives get company loans AND automobiles.

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