BRODHEAD - Seventeen former members of a Brodhead cheese co-op have filed suit in Rock County Court against the co-op cheesemaker, his wife and his accountant, saying they stole millions of dollars from the co-op.
The former members of Decatur Swiss Cheese Co-op allege cheesemaker Steve Stettler and his wife, Glennette, who together own Decatur Dairy, stole money paid by cheese buyers.
The "large sums" of money were to be paid to the members, according to the suit. The Stettlers' "intentional non-payment, cover-up and conspiracy" were assisted by their accountants, who "intentionally misreported and concealed them from their other client, Decatur Swiss Cheese Company Cooperative," the lawsuit states.
The suit names as defendants Decatur Dairy; Steven and Glennette Stettler; the accounting firm Boeke & Associations; the accounting firm's owner, Roger Boeke, and the dairy's insurance companies.
The plaintiffs, who were members of the co-op from 2001 to 2007, are: Robert Atkinson, Dan Ballmer, George Crooks, Dale Heath, James Lawrence, Dean Lederman, Joel Nieman, Brad Saunders, David Schenk, Herman Wellnitz, Joseph Wellnitz, Mark Wellnitz, Phil Wellnitz, James Wilke, Robert Wolfe, Jeff Border and Ken Heller.
The members of the co-op provide milk for processing into cheese at Decatur Dairy and are paid proportionately from the profits of cheese sales. The co-op entered into a contract with Stettler in 1981, and the contract was renewed annually until Dec. 31, 2007.
The lawsuit is the latest chapter in an ongoing dispute between the co-op, its former members and Stettler.
Stettler said he knew the lawsuit was coming but said there's no new evidence and the issues argued by the farmers have already been resolved with the new co-op board and co-op members.
"It's the same thing just dressed differently," Stettler said in reference to the latest lawsuit.
He said charges that his wife altered books came from a misunderstanding of comments she made at an unemployment hearing for a former employee.
Stettler said the farmers sued him in Rock County because they weren't happy with how the previous suit was settled in Green County.
"This is very unfortunate," Stettler said. "The co-op is doing well and we're moving forward."
According to the lawsuit:
Problems started in August 2006, when a bookkeeper for the dairy and a bookkeeper for the co-op discovered the Stettlers' computer records generated by dairy office staff were secretly altered by Glennette Stettler for numerous months since January 2002.
The alterations created "a second set of books."
The co-op hired Brian Holmes of RSM McGladrey to investigate the financial discrepancies. His Nov. 22, 2006, report found "arbitrarily-reduced weights and arbitrary reductions in sales price per pound of cheese reported to the co-op and farmer/patrons totaled over $2.8 million" from Jan. 1, 2002, to at least Sept. 30, 2006.
In addition, a certified fraud examiner/forensics auditor found and Glennette Stettler admitted under oath that she altered the dairy's computer records about cheese returns. The investigator estimated the changes resulted in a loss of more than $590,000 to the co-op's members.
The investigator also found the Stettlers and the dairy shorted the members more than $6,000 for cheese sold at the dairy's retail store.
The lawsuit seeks actual damages, the cost of investigation and litigation, plus triple the amount of actual damages.
- Times reporter Brian Gray contributed to this report.
The former members of Decatur Swiss Cheese Co-op allege cheesemaker Steve Stettler and his wife, Glennette, who together own Decatur Dairy, stole money paid by cheese buyers.
The "large sums" of money were to be paid to the members, according to the suit. The Stettlers' "intentional non-payment, cover-up and conspiracy" were assisted by their accountants, who "intentionally misreported and concealed them from their other client, Decatur Swiss Cheese Company Cooperative," the lawsuit states.
The suit names as defendants Decatur Dairy; Steven and Glennette Stettler; the accounting firm Boeke & Associations; the accounting firm's owner, Roger Boeke, and the dairy's insurance companies.
The plaintiffs, who were members of the co-op from 2001 to 2007, are: Robert Atkinson, Dan Ballmer, George Crooks, Dale Heath, James Lawrence, Dean Lederman, Joel Nieman, Brad Saunders, David Schenk, Herman Wellnitz, Joseph Wellnitz, Mark Wellnitz, Phil Wellnitz, James Wilke, Robert Wolfe, Jeff Border and Ken Heller.
The members of the co-op provide milk for processing into cheese at Decatur Dairy and are paid proportionately from the profits of cheese sales. The co-op entered into a contract with Stettler in 1981, and the contract was renewed annually until Dec. 31, 2007.
The lawsuit is the latest chapter in an ongoing dispute between the co-op, its former members and Stettler.
Stettler said he knew the lawsuit was coming but said there's no new evidence and the issues argued by the farmers have already been resolved with the new co-op board and co-op members.
"It's the same thing just dressed differently," Stettler said in reference to the latest lawsuit.
He said charges that his wife altered books came from a misunderstanding of comments she made at an unemployment hearing for a former employee.
Stettler said the farmers sued him in Rock County because they weren't happy with how the previous suit was settled in Green County.
"This is very unfortunate," Stettler said. "The co-op is doing well and we're moving forward."
According to the lawsuit:
Problems started in August 2006, when a bookkeeper for the dairy and a bookkeeper for the co-op discovered the Stettlers' computer records generated by dairy office staff were secretly altered by Glennette Stettler for numerous months since January 2002.
The alterations created "a second set of books."
The co-op hired Brian Holmes of RSM McGladrey to investigate the financial discrepancies. His Nov. 22, 2006, report found "arbitrarily-reduced weights and arbitrary reductions in sales price per pound of cheese reported to the co-op and farmer/patrons totaled over $2.8 million" from Jan. 1, 2002, to at least Sept. 30, 2006.
In addition, a certified fraud examiner/forensics auditor found and Glennette Stettler admitted under oath that she altered the dairy's computer records about cheese returns. The investigator estimated the changes resulted in a loss of more than $590,000 to the co-op's members.
The investigator also found the Stettlers and the dairy shorted the members more than $6,000 for cheese sold at the dairy's retail store.
The lawsuit seeks actual damages, the cost of investigation and litigation, plus triple the amount of actual damages.
- Times reporter Brian Gray contributed to this report.