Judgment Granted Against Bookkeeper Ziegler Says Ex-Comptroller Embezzled About $1.2 Million

Tue., June 6, 2000

By Bill Morlin billm@spokesman.com

A $1.6 million default judgment has been entered in Spokane County Superior Court against a former corporate comptroller for Ziegler Lumber Co.

It appears doubtful, however, that the Spokane-based building supply firm will be able to collect the judgment from its former chief bookkeeper.

Ziegler Lumber got the civil judgment against Guy Clifton James Marshall and his wife, Katherine, both of Spokane.

Guy Marshall was an employee of Ziegler Lumber from August 1987 until Jan. 11, 1999, when he resigned as corporate comptroller.

Ziegler Lumber filed a civil suit against Marshall and his wife in May 1999, accusing him of embezzlement.

Criminal charges have not been filed, but the case is being reviewed by the U.S. attorney’s office.

Federal charges probably will be filed soon against Guy Marshall, authorities say.

Guy Marshall couldn’t be reached Monday. His attorney, Carl Hueber, declined comment.

On the day he resigned, Guy Marshall “admitted to embezzling from Ziegler Lumber an amount which is believed to be approximately $1.2 million,” the civil suit alleges.

The Marshalls filed for bankruptcy last year, and that move put the brakes on the civil suit they faced.

But on May 18, U.S. Bankruptcy Judge John Rossmeissl ruled that the $1.2 million the Marshalls owe Ziegler Lumber is not dischargeable under the pending bankruptcy petition.

After that ruling, Ziegler attorney Peter Witherspoon got the default judgment for $1.6 million against the Marshalls in Superior Court. The judgment includes 12 percent interest, which continues accruing.

The judgment was approved Wednesday by Superior Court Judge Sam Cozza.

“I don’t know what realistic ability we have at this point to collect this judgment,” Witherspoon said Monday.

The legal move will allow Ziegler to attempt to collect the money from Marshall if he should acquire new assets.

Witherspoon said most of the money allegedly embezzled from Ziegler Lumber apparently was used to purchase personal items, including expensive stereo equipment.

After the Marshalls filed for bankruptcy, a trustee was appointed to supervise liquidation of their assets.

Stereo equipment, personal watercraft, jewelry and other items not exempt under the bankruptcy proceeding were sold at auction by the trustee, raising approximately $100,000.

When the bankruptcy is finalized, those funds will be disbursed to creditors, including Ziegler Lumber, Witherspoon said.

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