NOBLESVILLE, Ind. — Marsh Supermarkets has filed a lawsuit against the chain’s former chief executive officer, Don E. Marsh, accusing him of spending corporate funds on a vast itinerary of international travel for himself and his family as the regional chain’s finances were deteriorating.
The suit, filed in Hamilton County Superior Court here, was prompted by an IRS audit of the company’s finances, according to the complaint.
“As CEO of a regional grocery chain, [Don] Marsh used millions of dollars of the company’s funds to travel the world, to maintain vacation homes, and inappropriately to finance personal relationships,” the lawsuit states. The suit claims he did this by creating a system of “executive vouchers” that were “outside the company’s normal accounting procedures.”
Don Marsh could not be reached for comment, but reports quoted his attorney as stating that the allegations are false and are "extreme misrepresentations."
Marsh executives and directors were also the subject of a shareholder lawsuit filed in 2006, accusing them of fraud and mismanagement, and Don Marsh's son, David Marsh, the former president, has also been involved in a lawsuit with the company, which was acquired by private equity firm Sun Capital Partners in 2006.
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