The Hyatt Corp., one of the largest hotel chains in the United States, has disclosed the details of personal business dealings of its officers and directors which led to the forced resignations of two top executives recently.
In an 8-K statement filed with the Securities and Exchange Commission. Hyatt disclosed that its former president, Hugh M. Friend Jr., improperly used for personal purposes about half a million dollars in company funds.
Friend's sister is married to Jay Pritzker, the Hyatt chairman. The Pritzker family of Chicago controls 34 per cent of Hyatt's stock.
The SEC filing also disclosed that Friend and another executive were involved in a series of questionable transactions with Donald E. Werby, a San Francisco real estate developer who managed a 255-unit luxury apartment building there for Hyatt. Through the end of June. Friend had a total of $330,000 indebtedness to Werby-related business. The document noted that Hyatt paid $500,000 to Werby personally and $340,000 to his management firm during 1975 and 1976 in questionable prepaid commissions and fees.
The filing said Friend recently paid back the questionable amounts from funds borrowed from his brother-in-law, Jay Pritzker.
Friend currently is a Hyatt vice president Pritzker now holds the six top titles at Hyatt and ordered the California company's headquarters moved to Chicago to consolidate them with the rest of the Pritzker enterprises.