Unfortunately, this happens a lot to family-owned businesses like Taylor Farms. The family (usually second or third generation) is not that involved and turns management over to a “trusted” CEO, who promptly uses the company as a personal piggy bank. It happens with public companies too but there are at least some controls on public companies. The CEO as king is way to common. This guy had the chutzpah to get his wife in on the act too.
This also happens a lot in not-for-profits. The founder is truly dedicated and altruistic. He gets old, uninvolved or his time over-extended. Other take control and are neither as competent, nor as altruistic, and the founder.