Well, if someone was overpaying using funds that actually belonged to someone else...

you never know.

I doubt this is the case, but it IS possible that management was doing this without the owners' knowledge.

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Criminal? I don't think it's illegal to overpay someone.

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Generally I agree since it happens everyday across America. On the other hand though, it can be illegal. Just two quick examples.

1) You overpay yourself all profits to avoid certain corporate taxes based upon earnings. Legality depends upon the structure under which you incorporated the business.
2) You pay someone as an "employee" to avoid paying gift taxes and reduce corporate earnings, thus leading to lower corporate taxes. Yes, you pay employment taxes, but there are circumstances in which you might come out better financially.

Either way the issue is really about intent.