Mars Candy Heiress Sues Lake Sunapee Contractor, Relax & Co., For $10 Million

By DAMIEN FISHER, InDepthNH

Valerie Mars, the billionaire heiress behind the Mars Bar candy fortune, is suing a Lake Sunapee property management company for $10 million, claiming that owner Jim Bruss and his employees scammed her on a project that included one intended to benefit the public.

Bruss’s business, Relax & Co., based in Newport, announced it was closing Tuesday and laying off all staff. The closure announcement, made on social media, came after the company laid off staff in its construction division. Sources tell InDepthNH.org the construction division employees were required to sign non-disclosure agreements the week before they were laid off.

Bruss did not respond to calls and social media messages seeking comment. A Relax & Co. employee answering the door on Tuesday told InDepthNH.org Bruss was in a meeting but would speak to a reporter at some point.

Mars hired Bruss and his business to build and manage two residential properties as well as develop a large parcel that would enhance public access to Lake Sunapee. Attorney Jacqueline Hudkins, Mars’ general counsel and the manager of Mars’s plaintiff organizations Kearsarge Community Common, Secret Cove, and Lookout Extension, told InDepthNH.org Mars wanted to make sure everyone could enjoy the lake.

“Valerie Mars believes everyone should have the opportunity to enjoy New Hampshire’s natural beauty — not just those who can afford it. She acquired over 300 acres of undeveloped forest, wildlife habitats, and shoreline on Lake Sunapee, Blaisdell Lake, and Billings Pond, with the purpose of donating the land for public access, education, and enjoyment. Her focus is on moving these projects forward so that communities may gather, explore, and connect with each other and with nature. Any restitution will be dedicated to preserving and enhancing these public spaces for generations to come,” Hudkins said in a prepared statement.

The lawsuit, filed in Merrimack Superior Court in Concord, states Mars discovered earlier this year that Bruss overcharged her by more than $5 million on three of the projects. When confronted, Bruss agreed that he owed Mars $5.1 million and signed a repayment agreement on July 27, according to the lawsuit.

According to the lawsuit, Bruss did things like add as much as a 95 percent markup to subcontractor bills on Mars projects. One project, known as the Boathouse project, Bruss billed Mars $4.8 million though the actual work done to date cost $832,449.

“The egregious nature of the defendants’ conduct is notably illustrated by the depth of greed that motivated the defendants to divert and misappropriate for Bruss’ and Relax’s personal and self-serving gains Valerie’s funds, with full knowledge that these funds were earmarked by Valerie for the development of recreation centers to be donated to charitable entities and the general public,” the lawsuit states.

In the weeks that followed signing of the repayment agreement, Mars discovered that Bruss also overcharged her on the Secret Cove project by more than $4 million. Secret Cove is a 120-acre property with half a mile of beach access that Mars wanted to donate to the public. Her vision is to create an outdoor recreation area, nature trails, and even a daycare center at the site.

The repayment plan required Bruss to make a $1,076,300 payment on Aug. 5, and then make monthly payments of $100,000. Bruss missed that first payment, and Mars filed the lawsuit on Aug. 8.

According to the lawsuit, Bruss bought a $1.3 million Bradford house for himself with the funds, among other purchases. He agreed to sell the house and give Mars the proceeds of the sale as part of his repayment plan.

The lawsuit alleges Bruss surrounded himself with people at Relax & Co. who helped facilitate his crimes. When one employee, Caroline Humphrey, started to question his billing practices, Bruss had her fired, according to the lawsuit. Humphrey did not respond to a request for comment.

Bruss’ ex-wife and business partner, as well as several other employees are named as defendants. Additionally, the lawsuit names several LLCs Bruss created to manage his various business affairs. The lawsuit alleges he is using the LLC’s to transfer assets and money around to hide them from creditors.

Earlier this week, before the business shut down, Relax and Co. took to social media in an attempt to dispel rumors and plea for kindness from the public.

“The past two weeks have been incredibly challenging, but this moment does not define the many hardworking, loyal people who have dedicated themselves to building and supporting Relax and Company,” the post states.

According to the post, employees were being harassed after the layoff of the construction division.

“However, we must also speak plainly: the behavior of many members of our community in response to recent events has been disheartening and deeply harmful. Our staff - people who have shown up every day with integrity and kindness - have been yelled at in public, shamed online, and made to feel unsafe wearing their company logoed attire. They are scared within their own community,” the post states. “Social media posts, mass emails and texts, and other attempts to damage our relationships with banks, vendors, and clients, do not serve justice, they threaten the livelihoods of over 100 employees and their families. Allegations against any one individual do not erase over a decade of service, excellence, and trust that our team has built.”

On Monday, after that post went live, deputies with the Sullivan County Sheriff’s Department seized Relax & Co. assets as part of a court order. Hudkins suggested people interested in buying any other property from Relax be careful before spending money. It may actually now belong to Mars.

“If anyone is considering purchasing assets from the closed Relax entities, they are encouraged to first do a lien search at the New Hampshire Secretary of State as Relax assets may be subject to a security interest,” Hudkins said.

This article first appeared on InDepthNH.org and is republished here under a Creative Commons license.