The trustee overseeing the Chapter 7 bankruptcy of a Montana-based appliance store has sued the company's former CEO and CFO, arguing their actions drove "a moderately successful company into financial ruin" and caused its employee stockholders to lose $9.2 million.
KECI-TV reports trustee Richard Samson filed the lawsuit in U.S. District Court in Missoula on Aug. 30.
The lawsuit alleges CEO George Manlove and CFO Paul Nisbet caused Vann's Inc. to pay $600,000 per year above market prices in rent for four properties that housed Vann's stores and were owned by LLC's of which Nisbet and Manlove were members. It also alleges Vann's paid over $350,000 in personal expenses for Manlove, who is the son-in-law of company founder Pete Vann.
Vann's Inc. filed for bankruptcy in August 2012 and was sold for $4.5 million.