Travel Expenses Examined In Marsh Trial
Continuing testimony in the civil trial of Marsh Supermarkets Inc. v. Don Marsh centers on the former chief executive officer’s personal expenses being paid for by the company during the final part of his tenure.
One of the company’s directors, Stephen Huse, owner of St. Elmo’s Steakhouse, testified Friday, Feb. 8. His daughter is also married to Marsh’s son, Arthur, which put him in a precarious position as the board pursued the sale against Marsh’s wishes in 2005.
Huse noted that the board was forced to restrict Marsh’s company travel expenses to Indiana, Ohio and Michigan where grocery stores were located. Marsh even threatened to fire Huse, which he couldn’t do because only shareholders can fire a board of directors member. Other people who were fired and rehired also took the witness stand Friday, including former Chief Financial Officers Doug Dougherty and John Elbin.
Monday brought the testimony of former corporate pilot Patrick Boggs. He flew the company jet from 2000 to 2006 verifying that Marsh took frequent trips to New York City to visit a mistress.
First, Boggs said he didn’t know why the flights were taken, but his memory was jogged by a deposition he gave previously. Other trips “to meet someone” were also taken to Smyrna, Tenn. According to the Indianapolis Star, Marsh’s attorney did not dispute the number of trips Marsh took to visit mistresses.
Also on Monday, Michelle Skeen, tax director of Marsh Supermarkets, said the company had to pay back corporate taxes for 2005-2006 totaling about $3 million for improper accounting of travel and entertainment expenses claimed by Don Marsh. About $1 million was spent by the company on legal, accounting and professional fees due to the IRS audit.
The trial is expected to conclude this week.