Marsh Trial Reveals New Side Of Defendent
The trial of Don Marsh, who is being sued by Sun Capital Partners for allegedly using company funds for his own personal expenses, continued in an Indianapolis courtroom Thursday.
Marsh is accused of spending $2 million for personal expenses during part of the time he was CEO of Marsh Supermarkets Inc. Sun Capital bought the Marsh grocery chain in 2006.
Upon the purchase, Sun Capital terminated Don Marsh “without cause,” claims the defense. Sun Capital stopped paying Marsh’s severance in early 2008 after it claimed it discovered widespread personal expenses Marsh charged to the company.
Don Marsh is counter-suing Sun Capital for $2 million in severance pay that he claims remains unpaid.
Jeff Swiatek of the Indianapolis Star said, “Forget about the gallivanting, free-spending CEO who had mistresses on the side. The Don Marsh depicted in court Thursday by his attorney was a grocery innovator who worked 24/7 seeding out new products and management ideas to improve Marsh Supermarkets.”
He continued, “The Don Marsh [who] came across to the nine jurors in federal courtroom during the fourth day of trial stood in stark contrast to the defensive and sometimes argumentative responses Marsh gave from the witness stand the previous two days as he was grilled by a company attorney.”
Scott Olson of the Indianapolis Business Journal pointed out that Marsh admitted on Thursday that he owes the Internal Revenue Service $518,892 in back taxes from his final years as the CEO of Marsh Supermarkets. The tax debt comes from an IRS audit that found “disallowed deductions” for personal expenses from April 2004 to September 2006.
A fifth mistress, who was also an employee that received generous pay and severance package, was revealed.
Marsh started his career in his father’s business as a stockboy and told how he became a sought-after foods expert. He worked in the business for 47 years and was CEO from 1968 until 2006. Marsh also discussed his family and his 54-year marriage and the fact that his wife also traveled often with him on business trips.
According to reports, both sides are still expected to call dozens of witnesses in the trial that should last at least another week.
During Marsh’s tenure as head of the company, Dan Marsh built and opened Arthur’s Supermarket in Syracuse, where is also a summer resident of Lake Wawasee. Don and Marilyn Marsh own a cottage on Vawter Park Drive, according to Kosciusko County tax records.
Arthur’s in Syracuse was ultimately closed by the company because it was an unprofitable operation. Marsh Supermarkets still has a store in Warsaw.