Bloomberg

(Bloomberg) -- The U.S. Securities and Exchange Commission doesn’t have to pay for what a judge called the "bacchanalian adventure" of two executives after agreeing to cover their travel costs to be questioned in a lawsuit. 

The regulator’s obligation to pick up the tab for taking depositions of the two men, principals of a defunct Panamanian broker-dealer firm, Verdmont Capital SA, doesn’t extend to “exquisite" expenses like first-class flights to London, a five-star hotel, $1,000 bar tab and a two-day side trip to Madrid, U.S. District Judge William Pauley in Manhattan said in a ruling Thursday.

Pauley also denied expense requests from the two, Glynn Fisher and Taylor Housser, for a $100 bottle of Bierzo el Rapolao Perez, “a well-regarded Mencia varietal from the Leon Province of Spain,” and a tour of St. Paul’s Cathedral in London.

"The request that the government reimburse Verdmont’s principals for their saturnalian revelries is beyond the pale," Pauley wrote in a three-page order.

To contact the reporter on this story: Bob Van Voris in federal court in Manhattan at rvanvoris@bloomberg.net. To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Peter Blumberg, Michael Hytha

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