Attorneys for former top executives of Montana appliance retailer, Vann’s, fired back after a bankruptcy trustee sued them for driving the company into financial ruin.
Vann’s filed for bankruptcy last year. It has since been sold to an out-of-state company. Many of its stores and distribution centers have been closed.
The bankruptcy trustee’s lawsuit against former CEO George Manlove and former Chief Financial Officer Paul Nisbet stems from that bankruptcy filing.
The suit, among other things, claims Vann’s paid $350,000 for George Manlove’s interior decorating expenses, $2,800 for Las Vegas casinos and $13,000 in unexplained credit card charges.
It also lists self-approved bonuses and says Nisbet failed to implement or enforce procedures to ensure expenses were in the best interest of shareholders.
NBC Montana found newly filed court documents from Manlove and Nisbet’s attorney.
In them, the attorney denies the allegations and says Manlove and Nisbet did nothing illegal and deny using company money for private expenses.
Both men are demanding a jury trial.