ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Thursday, February 3, 2005

Going native

No one paid much attention when an "incredibly respectable" British oil executive in Houston had the company issue a $2,500-a-month services contract to an entity called LB Evaluation, Inc.

But the stuff hit the fan when the executive, Philip Garrod, left Hydro Projects Group to go into competition with it.  A subsequent audit showed that "LB Evaluation, Inc." was actually a 39-year-old American prostitute named Lina Burger, whose notarized contract required her to "love" Garrod and let him have visitation rights with her dog.

Hydro Projects says Garrod misappropriated almost $400,000, spending much of it on prostitutes, massage parlors, and strip clubs—about $212,000 is just "unaccounted for."  Garrod agreed to plead guilty to "misappropriation of fiduciary property"—and was ordered to return $43,000 and do 160 hours of community service.

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