Former patrons file suit against cheesemaker
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 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.
The Janesville Gazette was not able to reach Stettler for comment.
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 that 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.

Sep 16, 2008 at 12:03 p.m.
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What kind of mustard, kid? Also, what kind of cheese? Sounds like a good way to spice up a traditional snack...Great timing, too, it being football season and all. Grazing TIME. Let me know, would you?
Sep 16, 2008 at 11:53 a.m.
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tiredoflies....I agree with you, I was just addressing the fact that people were questioning why the other members weren't involved, and just stating that not wanting to be finacially tied up MAY BE one reason, among many. Sorry to offend if I did.
Sep 15, 2008 at 10:47 p.m.
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optimism - Maybe you know some of the farmers that are involved in this case, but I wouldn't be so apt to believe that the others are not involved because they can't afford it. There are plenty of successful farmers that CHOSE not to join in this lawsuit. But I do have to agree with your perspective on monroegirl.
MANURE_EQUALS_MONEY - Those are some pretty big accusations you are throwing around. Boy, one would think you were talking about NYC or LA, not Green County, WI. Just my opinion, but you probably shouldn't throw around those kinds of accusations without proof!! And I highly doubt that you have valid proof of all that you have said.
Sep 15, 2008 at 5:04 p.m.
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One more point, I do PERSONALLY know a few of these farmers who are sueing Decatur, and I can attest that they are successfull farmers, and had the means to bring this to court. Some of the other members may not have the financial stability to get into a lengthy lawsuit. So, those of you who were wondering why not all members were involved, this COULD be the reason. I am not saying I sat down and talked to them personally about this, but I am apt to believe that this is the reason.
Sep 15, 2008 at 5:01 p.m.
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THEKID....I am hoping your mustard doesn't have honey in it...the stickiness would only add to the cotton mouth....hehe. ;o)
Sep 15, 2008 at 5 p.m.
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WANTTOKNOW....not IWANT2KNOW....sorry.
Sep 15, 2008 at 4:59 p.m.
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IWANT2KNOW....what on earth does your sister being a murder victim have to do with a little cheese humor?? Being sued for withholding funds doesn't even touch the measuring scale as far as being equal to the crime of murder (although some see all sin as equal....equal in God's eyes, not in Man's law). Honey, I think there could be a blog about how to weed a garden properly and you would take offense to someone's suggestions. You are in a state of depression, and need help to lift the heaviness off your shoulders. I am so sorry you are in this state of mind, but you need to learn how to laugh again.
Sep 15, 2008 at 4:54 p.m.
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MONROEGIRL....Really, unless you have a seat in the room at the court house in this particular case, your assessments of this situation are just plain assumptions. Throw out all the BUSINESS degree lingo you can muster up, but no amount of educated jargen will change the fact that you don't have valid, factual information. It is bad for our hearts to get all fired up over something we know absolutely nothing about, only think we do. Take a walk.
Sep 15, 2008 at 4:30 p.m.
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Everyone knows if you live in Green County and you get into a little trouble and you happen to either be a drinking buddy, a recreational drug user/supplier, beat someone half to death with a two by four, money launderer, bookie, you will not go to jail because you have to much info that could also take down the local lawyers or judge. Ask Mr. Stettler and his new board why they signed affidavit's that they were BST free and none of their patrons used BST but most of the board uses this drug but sells and labels their product as BST free. If you used the product have the balls to say you use the product. No credibility behind this business what so ever. How can someone water down their milk for that long and a good cheese maker not to know he was.....almighty dollars and greed has a price...
Sep 12, 2008 at 12:48 p.m.
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monroegirl - There you go again, misrepresenting yourself as someone who has inside information on this case. If you knew what you were talking about, you would know that the co-op and Decatur Dairy are two seperate entities so Stettler would not be reporting the co-op's INCOME to anyone. Also, any fees that are to be paid to the state would be the responsibility of the co-op, not the cheesemaker, so what would be his motive in understating a report?? But more importantly, how would you have any idea what was reported on state affadavits?? And as for the hostile takeover, Smart1 is completely correct in stating that the presence of the auditors during that whole process clearly shows their bias in this case. I don't think they were behind the takeover, that was most certainly done by the previous board members, headed up by a disgruntled previous employee of Decatur Dairy. But in any case, it doesn't matter who initiated the takeover, but it is a clear case of bias on the part of the auditors to have been there when it was happening.
Sep 12, 2008 at 10:30 a.m.
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MG – First and foremost, the previous board is responsible for that action. I stand firm that the mere presence of the accounting/audit firm at that takeover was a clear show of Bias. At the very least, we agree on one thing…bad move for the Coop. But now you’re kidding right?? Dept of Ag audits are very rigorous, understating figures and avoiding fees, hmmm so farmers can earn top dollar. That is a very broad statement especially when making reference to the accounting arena.
Sep 11, 2008 at 8:24 p.m.
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tired_of_the_lies - I used my business degree and common sense to come up with that definition. I realize that Stettler pays his farmers more than most. Something he can afford to do when he is understating the coop's income so he doesn't have to pay certain fees to the Dept of Ag. I don't blame the other farmers for not participating in the lawsuit-it has taken up an incredible amount of time and money-which alot of them don't have.
Sep 11, 2008 at 8:13 p.m.
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Smart1one- You're kidding right? You're suggesting the accountants were behind the takeover?? That's actually the reason I decided not to major in accounting-I didn't want to take the course in corporate takeovers. I'm pretty sure the previous board made the decision to fire Stettler while he was out of town (not a move I happen to agree with).
Sep 11, 2008 at 2:59 p.m.
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Monroegirl – your definition of an audit is a good one. In this case, you could hardly state that the auditing firm showed no BIAS when it was their representative at the HELM of that hostile takeover attempt accompanied by actual Board Members and a discharged employee while the opposing party was out of state (all a matter of public record). I am sure the role of the auditing firm was well worth it to them, they were spending the Coop’s dime. It is too bad that the validity of their auditing methods and procedures were not reviewed and their license questioned for their actions. But really…name calling? Bad Form!
Sep 11, 2008 at 2:07 p.m.
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Wow Monroegirl "Crooks" a harsh word, sounds like you have more at stake here then just your opinion. Isn't it still innocent until proven guilty? Your pretty quick to judge with out knowing all the information. There's two sides to every story, have heard BOTH sides? Sounds to me your mind is already made up!
Sep 11, 2008 at 2:02 p.m.
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monroegirl - first off, i know what an independent audit is and i know the consequences if the rules are breached. did you have to look it up on the internet for a definition?? and i am anything but naive. you have said i heard this and that and apparently you just believe everything you hear, so who is the naive one?? and how is it that Stettler is such a crook, but he pays his farmers a higher price for their milk than any other factory around. (just ask any of them and they will tell you) and if this whole thing is so "cut & dried" then why is it that when this whole thing started the co-op had close to 80 patrons but only 17 have filed a lawsuit?? what - the rest of them don't like money??
Sep 11, 2008 at 1:52 p.m.
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whatever is going to happen is going to happen. I just hope everybody gets what they have coming to them, whatever that may be...
Sep 11, 2008 at 1:51 p.m.
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mmmmmmm cheeze and crackers with a little mustard. great munchie food;)
Sep 11, 2008 at 1:15 p.m.
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tired_of_the_lies--An audit is an independent assessment of a company's financial records. Which means it doesn't matter who is paying for it. Those conducting the investigation could have their license removed if they show bias. I doubt it would be worth it. I'm sorry, maybe the mediator didn't use the word "overwhelming" - was it "cut and dried"? Maybe you should check the source of your information. I can't comprehend how people like you can who naively believe crooks like the Stettlers even in the face of hard evidence. Maybe you're related?
Sep 11, 2008 at 1:04 p.m.
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well said Smart1
monroegirl - nothing has been proven true by the auditors. and there was nothing independent about that audit.....who do you think was paying for it?? and the mediator did not say that there was overwhelming evidence against the Stettler's. you better get yourself a new source of information. people like you are the reason for all the misinformation that is circulating about this whole situation. if you don't know what you are talking about, then maybe you should just not say anything.
Sep 11, 2008 at 12:46 p.m.
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Sure some of the evidence was already heard in court - but the judge wasn't ruling on monetary damages. In fact a mediator heard both sides and said that the farmers' case was overwhelming against Stettler. How can the farmers be spreading lies when what they are saying has been proven true by independent auditors/accountants?
Sep 11, 2008 at 10:42 a.m.
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Monroegirl – your “Clarification” heard however not quite so clear…The Coop’s contract and restraining order hearing expanded itself to a whole host of issues brought to the table by the Coop itself, including but not limited to the forensic investigation findings and their expert’s testimony, a hostile takeover also consuming more courtroom time paid for by tax dollars plus more than ample time was allowed for responses by both sides and to facilitate resolution. All this in living color and out there for the public to hear in court or read on the front page, how could it possibly be more clear unless you are one of the collecting lawyers? The attempt to shade the proceedings by slamming court officials doesn’t change the outcome. This was definitely not a quick one day ordeal. Do we really want tax $$ to support yet another Go Round?
Sep 11, 2008 at 9:47 a.m.
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monroegirl-
You don't know what you are talking about either. Jim Beer and Stettler are not friends and if you have evidence to the contrary then lets hear it!! And as for this case being tried twice, that is exactly what has happened. Yes, the case in Green Cty. court was about the restraining order but all this stuff was brought out there (and I was in the courtroom that day so I know this for a fact) Although that was less about a restraining order and more about how the old board waited until they knew that Stettler was out of town and then went in to the factory and told his 23 yr. old daughter that they were firing her dad and taking over. These people didn't even have the guts to tell Steve to his face, but we should feel sorry for them?? I don't think so!! And there was also a hearing before the Lafayette County judge, so Rock County will be the third judge to hear this case. There is alot more to this case than what has been printed and these farmers know it.....they are just greedy and don't want to admit they are wrong....so instead they run around spreading lies about how Steve is friends with Judge Beer and they didn't get a fair hearing. But when they requested a new judge for the second hearing they got it and that didn't go any better for them....so they just decide to drag these people through the mud one more time in another county....so what's next??? If this doesn't go their way, are they going to try Dane County next??
Sep 10, 2008 at 11:38 p.m.
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And just to clarify: the case that was heard in Green Co last year was in regards to Stettler's contract with the coop and the restraining order. So this case has definitely NOT been tried twice!
Sep 10, 2008 at 11:28 p.m.
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Bips-From everything I've heard, you're right on! Green Co Judge Beer is buddies with Stettler so that's why the farmers wanted the case heard in another county.
Sep 10, 2008 at 10:40 p.m.
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Refreshing view Smart1one. If this has gone through the judicial process not once but twice, it seems to me the ones looking to take advantage are these farmers. How many other counties will have to spend countless time and our taxpayer dollars to give another not guilty verdict. This is why America's debt is at a record high. (I'm sure this is not cause however).Sounds to me it's the same just dressed differntly. I would be willing to bet that those families are not the only ones going through tough times with this situation. If money is so tight in this economy maybe you should focus your attention on other things rather than giving all of your money to those money hungry lawyers we all love...cheese and crackers Gary!
Sep 10, 2008 at 4:16 p.m.
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Hey Bips!!! Just knowing that these issues have passed through the judicial systems of not just one but two counties makes it very hard to believe that you “understand” at all. SHAME ON YOU for insinuating that so many individuals and governmental entities could be involved in this case with no discussion or communication and such a huge lack of information. Expressing an opinion is one thing but sharing your “understandings” of details that were shared in the courtroom open to the public and printed in the daily newspapers points out that you must have missed A LOT. Today’s economy has had a strong impact on one and all; farmers, cheesemakers, and most importantly, we the taxpayers. How many times do we allow tax dollars to be used to bring proceedings between the same parties over the same issues? The lawyers have taken your extra bucks!!
Sep 10, 2008 at 1:41 p.m.
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Hey Bips looks like you know more about this case than any of the papers have printed. Your statement is definitely not one of a open-minded person!
Sep 10, 2008 at 9:02 a.m.
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It's unfortunate that these great farmers have been taken advantage of and have to spend their time and money to recoup money that should have been paid to them. Dairy farmers are already stressed in today's economy. Let's give them our support and enjoy our great Wisconsin cheese and milk! Good luck to you guys - hope you get your day in court and your back-pay.
Sep 10, 2008 at 8:19 a.m.
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Bips....You said it all!!
Sep 9, 2008 at 11:18 a.m.
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At least the case is out of the good ole boys playground. I'm not sure what part of 'secretly altered computer records' would be legal by any means. If the cheesemaker, his wife, accountant, or the new board don't have anything to hide, why are they in such a hurry to say it's the same thing, only dressed differently. My understanding is that the new board did not ask one old board member anything about any facts discovered or had any discussion at all with previous boards attorney's, accountants (not the Dairy's) or fraud examiners. SHAME ON THEM! I also understand that the cheesemaker signed false affidavits to the Wisconsin Dept. of Ag. Has the new board looked into that? Did they know that that for any patron to be paid over and above any other patron, the Coop was out of compliance? A patron testified under oath that he was paid a premium that no other patron got. Is that fair? If it's OK with you to work hard, and get paid, not what you earned, but someone arbritrarily decided that you should get, then of course you'd think this form of business is just fine. Personally, I'd love to have a few extra bucks to buy a new Suburban!
Sep 8, 2008 at 11:07 a.m.
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Make that "counseling" with an "s" :)
Sep 8, 2008 at 11:03 a.m.
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You want some cheese with that whine?
Sep 8, 2008 at 9:52 a.m.
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Chill out WouldLikeToKnow - perhaps grief counceling would be a better place for you to vent than attacking those who post in a public forum. "Cheese and Crackers" is as innocuous as Robin exclaiming, "Holy root beer bottles, Batman!"
I went to school with some of the plaintiffs (Wellnitz guys). A good, hardworking family. Hope things turn out well for them.
Sep 8, 2008 at 9:21 a.m.
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I am sorry that you lost your sister, but I have no idea what that could possibly have to do with this story.
Sep 8, 2008 at 9:09 a.m.
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The Great Cheese Scandal of 2008! Wonder if CNN will pick it up (sarcasm).
Sep 8, 2008 at 3:29 a.m.
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mytake4u, all the libbies are too busy trying to diminish all the attention and stir caused by McCain's choice of Sarah as VP. You probably won't even see them on here.
Sep 8, 2008 at 1:52 a.m.
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let me be the first to say.....it's george bush's fault. that should satisfy the libbies.
Sep 7, 2008 at 11:28 p.m.
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garyprimer - No, I had not heard of the expression before, but being the sister of a murder victim I have read many asinine remarks made online while following our court case in the newspapers, so should not be surprised by yours along with those from others that egg you on. In addition, personally knowing one of the families on the plaintiff side in this case it is doubtful that they find anything hilarious about the situation they are in.
Sep 7, 2008 at 11:13 p.m.
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When I read this article, I found myself saying "I bet gary is going to have the 'Cheese and Rice' comment". I was close.
Sep 7, 2008 at 10:21 p.m.
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cheese wiz Gary, you come up with some good ones
Sep 7, 2008 at 7:28 p.m.
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garyprimer-
I think you are hilarious!
Sep 7, 2008 at 4:58 p.m.
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It is an exclamation. A verbal expression of surprise. Have you never heard that expression before?
Sep 7, 2008 at 4:11 p.m.
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hopefully for the partons, the cheesemaker isn't drinking buddies with the rock county judge.
Sep 7, 2008 at 3:22 p.m.
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garyprimer - Is there an explanation for what your comment has to do with this article?
Sep 7, 2008 at 10:16 a.m.
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Cheeze and Crackers!
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