Former Marsh CEO Defends Spending

INDIANAPOLIS — Don Marsh, the former chief executive officer of Marsh Supermarkets [3], testified in court here this week that his use of company resources for gifts and trips fit within the parameters of his responsibilities as CEO, according to reports.

Don Marsh is being sued by the company, which accuses him of misusing company funds and is seeking repayment. Marsh left the company, which had been founded by his father, in 2006 when it was sold to private equity investors Sun Capital Partners.

According to reports on Indystar.com, Don Marsh testified Wednesday and Thursday that he was given broad latitude by the company’s board of directors to travel for industry events and as a member of various trade groups.

Read more: Marsh Taps O'Boyle as Chairman, CEO [4]

The suit was filed in 2009 after an IRS audit of the company’s finances.

“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 stated. The suit claims he did this by creating a system of “executive vouchers” that were “outside the company’s normal accounting procedures.”

Neither Don Marsh nor his attorney could not be reached for comment Thursday.

Suggested Categories More from Supermarketnews
[15]