David Peeler once was CEO and Group Publisher of Kellogg Media Group (KMG). KMG is a leading provider of value-rich content aimed at the travel, leisure, and hospitality industries. Its focus is on gaming, nightlife and entertainment markets including Las Vegas and Atlantic City. KMG owns and operates “What’s On The Las Vegas Guide”. The CEO of “What’s On, The Las Vegas Guide” bilked the company of more than $500,000, Kellogg Media Holdings claims. Kellogg Media Holdings claims David Peeler used the money to pay his mortgage, fix up a Porsche and a Mercedes he kept 2,000 miles away, take vacations and buy lacrosse equipment for his kids, among other things.
Kellogg says it hired Peeler as its first CEO in 2009 to oversee the finances and market its biweekly magazine. The company claims that in the summer of 2010 “KMH’s executives became aware of Peeler’s instructions to subordinate employees to disburse to Peeler vast monies, purportedly expended by Peeler for KMH business purposes, without Peeler providing any substantiation of such expenses …”
Far from being legitimate business expenses, Peeler made personal mortgage payments and paid: (a) for meals at restaurants in Connecticut and elsewhere that were not business related; (b) for more than one vacation; (c) his loan payments, insurance, repairs and new tires for a Porsche (located in Connecticut and not in Nevada); (d) for repairs to a Mercedes Benz (also located in Connecticut and not in Nevada); (e) for lacrosse equipment for his children; and (f) for contributions/donations to schools in Connecticut, among many other leisure and personal consumer items, services and trips. Over a thirteen month period, these personal and non-business expenses amounted to more than $500,000 which were reimbursed by KMG.
KMG eventually noticed decreased revenue in the Vegas market and misappropriation by Peeler of company funds. Peeler has since been fired. Fast cars, money and lacrosse equipment…I wonder which gave it away.
Stick Tap: Court House News