CCA Industries Inc V.CAW.P

Co-CEO's expenses (excerpts from Spec Report Rec'vr)

[AndyNewmark]

On February 26, 2019, the Company demanded that the Former CEOs reimburse DIG for all expenses the Company deemed as personal. An email sent by the Company to Lanni demanding such repayment, which attached details as to the expense amounts incurred by Lanni deemed by the Company as personal (the “Lanni List of Expenses”), is attached as Appendix “F”. The Receiver understands that the same email was sent to Alex Agius with details of his expenses, a list of which is attached as Appendix “G” (the “Agius List of Expenses”). To date, and to the knowledge of the Receiver, the Former CEOs have not repaid those amounts…

The Receiver seeks repayment from the Former CEOs of the following four categories of expenses:
 
a.Travel expenses ($207,556 in total): including a family vacation for eight people to Hawaii for Agius’ family and extended family.
b.Leisure ($33,724 in total): excessive leisure expenses that do not appear to have been for the benefit of DIG;
c.Personal Storage ($17,511 in total): primarily the rental of lockers for the purpose of storing personal luxury automobiles; and
d.Chop Restaurant ($42,588 in total): expenses incurred by the Former CEOs who regularly attended a steakhouse near DIG’s office for lunch.

Only 50% of charges at this establishment are being sought by the Receiver.