The Ashford companies were among the biggest recipients of federal money that was intended to help small businesses survive the coronavirus pandemic.
The companies disclosed in a regulatory filing this week that they received subpoenas from the
All three companies were founded and are run by
Ashford said the companies are responding to the SEC’s request for documents and other information and can't predict the outcome. However, it said the investigation could harm its business, and if the
Ashford indicated that the
Such transactions aren’t illegal but can draw scrutiny because of the potential for helping company insiders at the expense of shareholders or creditors.
The Wall Street Journal has reported that lawyers for another company locked in a dispute with
The companies own upscale hotels including some under the Marriott and Ritz Carlton brands. The hospitality industry has been under severe strain as the pandemic chokes off both personal and business travel.
The Ashford companies came under public scrutiny after applying for up to
The three companies received at least
The companies declined to say how much they received.
Bennett and dozens of other companies have blamed confusing federal guidance about the relief program.
News of the
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