Newport firm closes amid alleged embezzlement

A fast-growing property maintenance company suddenly closed its door earlier this month as its owner was accused in a lawsuit of embezzling millions of dollars from one of the richest women in the world.

Relax & Co., which provided an array of services to property owners in the Lake Sunapee area, had already been forced to lay off workers earlier this month.

The collapse of the company came after a member of the billionaire Mars family filed a lawsuit in Merrimack County Superior Court this month against Relax & Co.’s owner James Bruss and associates.

The lawsuit alleges Bruss, of Bradford, diverted millions of dollars the plaintiff paid him for real estate development projects that were either never undertaken or left incomplete, and the costs of which were inflated.

Bruss did not respond to requests for comment sent to his listed email addresses. Relax & Co., which occupied offices on Main Street in Newport, similarly did not respond to messages. An attorney for Bruss did not respond to an email sent for comment.

Valerie Mars, a member of the family that owns candy and snack food maker Mars Inc., filed a 25-page civil complaint against Bruss, his former wife, Gina Bruss, four other Relax & Co. employees and five Bruss-related business entities. Mars has a net worth of about $11.7 billion according to the Bloomberg Billionaires Index, making her the 261st richest person in the world.

The lawsuit alleges that Mars has suffered between $8 million to $10 million in damages and costs as a result of Bruss failing to do work his firms were engaged to perform on four real estate projects in the Lake Sunapee and Sutton areas. The projects include two Mars was developing for public benefit.

Bruss “confessed to a portion” of his misconduct and “acknowledged that he embezzled Valerie Mars’ money for his personal use,” the lawsuit states.

On July 27, Bruss entered into a repayment agreement to repay Mars $5.2 million to cover part of what he is alleged to have siphoned off from Mars’ advance payments, according to the lawsuit. But he failed to make an initial repayment of about $1 million when it was due Aug. 5.

Problems at Relax & Co. began to leak into the public after it laid off an unknown number of employees in its construction and other divisions.

On Aug. 8 — the same day that Mars filed her lawsuit against Bruss — Relax & Co. posted on its Facebook page that despite “rumors circulating … we want you to know that behind the scenes we are working tirelessly to find clarity and navigate forward.”

The Facebook post asked the public to refrain from harassing Relax & Co. employees, who the post said were being “yelled at in public” and “shamed online and made to feel unsafe wearing their company logoed attire.”

“Allegations against any one individual do not erase over a decade of service, excellence and trust that our team has built,” the post said.

On Aug. 12, Relax & Co. posted again on its Facebook page that “with sincere regret” they were closing “effective at the end of all scheduled jobs today.”

By Wednesday morning, the Facebook page of Relax & Co. had been deleted.

Mars, a philanthropist and conservationist, formed Kearsarge Community Common, comprised of land parcels including the former home of the Girl Scout Camp Wabasso around Blaisdell Lake and Billings Pond in Sutton and The Secret Cove, comprising about a half-mile of frontage on Lake Sunapee in New London.

Kearsarge Commons is “envisioned as a donation to the public to create an outdoor recreation area with beach access, nature trails and a daycare facility,” while The Secret Cove “has a goal of granting public access to Lake Sunapee, particularly for those who cannot afford lakefront real estate,” the lawsuit said.

Bruss billed Mars — and she paid — a total of $17.9 million for work on the projects, the lawsuit reports, of which the lawsuit alleges Bruss used between $8 million to $10 million for himself, including the $1.3 million purchase of an inn in Bradford.

The diversion and misappropriation of Mars’ funds have negatively impacted projects that were “earmarked by Valerie for the development of recreation centers to be donated to charitable entities and the general public,” the lawsuit said.

“Valerie Mars believes everyone should have the opportunity to enjoy New Hampshire’s natural beauty, not just those who can afford it,” Jacqueline Hudkins, an attorney for Mars, said via email.

Mars “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.

This article is being shared by partners in the Granite State News Collaborative. For more information, visit collaborativenh.org.