The CEO of a Silicon Valley startup was quietly fired after allegedly spending over R1 million at strip clubs and charging it to a company credit card
- Eric Gilmore, the CEO of Silicon Valley startup Turvo, was fired back in May after it was discovered he spent more than R1 million at strip clubs and expensed it to a company credit card, Bloomberg reported.
- Gilmore allegedly expensed $76,120 at "adult entertainment venues" over a three-year period, according to a legal filing.
- Gilmore filed a lawsuit against Turvo, but didn't deny the claims around his expenses. Rather, he argued that the board didn't follow proper procedure when it released him from the role. The suit settled in September, Bloomberg reports.
- Turvo named a new CEO in November named Scott Lang. The company, which makes software for the logistics industry, was last valued at R6.3 billion, according to Pitchbook.
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The cofounder of a Silicon Valley software startup was fired as CEO earlier this year after he allegedly used his company credit card to expense over $75,000 – more than R1 million – spent at strip clubs while entertaining clients.
Bloomberg was the first to report that Eric Gilmore, the cofounder of Turvo, was fired back in May from his position as CEO. Over a three-year period, Gilmore allegedly expensed $76,120 of costs from "adult entertainment venues," according to a legal filing reviewed by Business Insider.
All told, Gilmore allegedly expensed "at least $125,000 in entertainment charges," discovered in May when Turvo's chief financial officer reviewed company credit card expense reports, according to the filing.
That filing is in connection with a lawsuit that Gilmore filed against Turvo in August. In the suit, Gilmore didn't deny the claims regarding his expenses, but argues that the company's board didn't adhere to proper procedure in removing him from his position as CEO. The suit was ultimately settled in September, Bloomberg reports.
"Turvo has no further comment. The matter has been resolved and the company has moved on," said a spokesperson.
Gilmore could not be reached by Business Insider, but declined to comment to Bloomberg. However, Gilmore remains on Turvo's board of directors, and is still its largest shareholder, Bloomberg reports.
Turvo was started back in 2014 as a platform for various pieces of the supply chain, including shippers and carriers, to work together. The three cofounders - Gilmore, Sai Nagboth, and Jeff Dangelo - all took C-suite positions at the startup, which was last valued at $435 million (R6.3 billion), according to Pitchbook.
According to PitchBook, Turvo has raised $89 million from investors, including prominent figures like former Nest CEO Tony Fadell, Box CEO Aaron Levie, and Square Product Engineering Lead Gokul Rajaram.
Meanwhile, Turvo announced in November it had appointed a new CEO, Scott Lang, to take over for Gilmore. In an interview with Bloomberg, Lang was asked if he has tried to "win over prospective clients at stripper joints."
"Never have. Never will," Lang told Bloomberg.
Read the full legal filing here.
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