Chapter 13 - The board investigation
Hartwell Hospitality’s board hired outside counsel.
Julian complained:
“My father-in-law is using the family mess to take over.”
Robert laughed when he heard.
“I own four and a half percent.”
He had no takeover path.
Outside counsel reviewed:
Chloe’s supplementary consulting contract.
Expense reimbursements.
Travel.
Company-paid apartment furniture.
Two promotional trips where Julian and Chloe stayed additional personal days.
What they found was messy.
Not a giant embezzlement.
Chloe had done real work outside her normal duties.
Brand redesign.
Influencer partnerships.
Vendor coordination.
But the $4,500 monthly supplement had weak documentation and had never been approved by the compensation committee despite policy requiring it for certain related transactions.
Julian signed.
Company-paid travel mixed business and personal expenses.
Some weekends had legitimate Monday meetings.
Some did not.
The audit ultimately identified approximately $61,000 in unsupported or personal expenses connected to Julian and Chloe over fourteen months.
Not millions.
Still unacceptable.
Chloe reimbursed part voluntarily during the investigation.
Julian disputed some categories.
A civil employment settlement handled the rest.
The affair did not make every business expense fraudulent.
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The audit separated them.
That mattered.
