A former employee of the American Apparel company who has been in the news recently after a police investigation revealed he was being paid hundreds of thousands of dollars a month has quit the job to move to South Korea.
In January, American Apples CEO Richard Jacobs quit after it was revealed he had received millions in cash payments.
His former boss, Scott Rippon, has since been forced to step down from his role as the company’s chief financial officer.
The revelation that he was receiving $800,000 a year in cash was made public by the Daily Beast newspaper in May.
“Scott Rippo is resigning as CEO,” a spokeswoman for American Appares confirmed to The Guardian newspaper.
Rippo had been with the company for nearly a decade and was known as a good manager.
He had previously been with American Appels since 2007.
But this was not the case with Jacobs.
According to reports in the Daily Mail and The New York Post, he was making about $600,000 in cash a month while running the company.
A new job in the country has meant Ripps salary is down to $300,000.
As part of his resignation, Rippos compensation will be frozen and he will not be able to collect a bonus.
However, his pay will still be paid.
American Apples said that it was a “committed move” to move Rippons salary.
It is understood that Rippoes salary was “substantially lower than anticipated”, according to reports.
This will mean that the former chief financial office will not receive any bonuses from American Appals next year.
There was a period when Rippom was paid nearly $3 million a year, but that was due to a one-off payout in 2017.
After the payout, Rrippos salary fell to about $2 million.
Following the news, Jacobs said he was happy to be leaving the company and was “looking forward to my next chapter in life”.
“The decision to step aside as CEO was made for a number of reasons including the need to focus on personal life,” Jacobs said in a statement.
Jacobs will also have to give up his ownership interest in American Applies shares, which are owned by the firm’s employees, after he resigned.
Mr Jacobs, who will be in South Korea for a few weeks, has also been asked to hand over any money he receives from AmericanApples from foreign governments.
Last week, a former employee, who did not want to be named, told The New Yorker that she was told by Jacobs that she would not be paid any money from the company, despite her having been working for it for years.
‘It was like we were in a prison’In a recent interview, Rinds former co-worker, who is also a friend of Rippow, said she was shocked by Jacobs’ actions and told him he was “fucking paranoid”.
She told The Guardian that Jacobs told her he was paranoid because of the “money in our bank account”.’
It looked like a war zone'”A former colleague told The Daily Beast that he found it “really weird” that he received the money while he was still employed by American Appears.
I think he was getting paid out of his own pocket.
I mean, it looked like he was in a war.
He just wanted to take it all and run around the city and get rich, he told the newspaper.
The former employee said he thought he was going to lose his job.
What we are hearing is that he is moving to South Korean, where he will work as a lawyer.”
I think it’s really strange, especially because he was paid out from American, which is a foreign company,” he said.
Other employees were also upset that they were not being paid for work done on the AmericanApparel site. “
[He] did not deserve it,” he told The Magazine.
Other employees were also upset that they were not being paid for work done on the AmericanApparel site.
Employees of American Appear told The Associated Press that they did not know what to expect when they received the $500,000, which came from a company called World Financial Group, which was run by a US citizen.
World Financial Group was bought by a Chinese company last year.
The company did not immediately respond to the AP’s request for comment.
An American Appames spokeswoman said it was “aware of this matter”.
“As part for a transition and to ensure we are focused on continuing to serve our clients, we have removed Mr Jacobs from his duties,” she said.