Sunterra-Owned Hog Operations and Meat Processor File for Bankruptcy Protection Amid Fraud Allegations

Apr 14, 2025

Canadian pork producer enters restructuring following $35 million fraud lawsuit in the U.S.

Alberta, has filed for protection under Canada’s Bankruptcy and Insolvency Act, alongside several of its subsidiaries — including Trochu Meat Processors, a key pork processing facility.

The filings come amid serious legal scrutiny stemming from a federal lawsuit filed in the United States by Compeer Financial, a Minnesota-based farm credit cooperative. The lawsuit alleges that three Sunterra-owned hog operations — Sunterra Farms, Sunwold Farms, and Lariagara Farms — were involved in a “long-running fraud” scheme.

$35 Million Fraud Allegation

According to the lawsuit, the companies collectively owe more than $35 million to Compeer Financial, backed by only $19 million in collateral. The legal complaint accuses the operations of engaging in a check-kiting scheme — a practice where checks are repeatedly circulated between companies using accounts with insufficient funds, temporarily inflating bank balances and triggering unwarranted interest payments from Compeer.

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Video: Shearing Delay Leads To Kingston 4H Sheep Show!

What started as a disappointment turned into a day full of surprises, fun, and celebration as we leave Ewetopia Farms behind and head out to the Kingston Fair to watch the 4H sheep show

Today’s vlog was supposed to be another sheep shearing day here at Ewetopia Farms, but when our shearer had to cancel, we suddenly found ourselves with an unexpected free day. Lucky for us, the Kingston Fair was happening — and some of our own sheep (and friends) were competing!

We brought along our shearing helper and headed to the fairgrounds to cheer on the 4H kids and see how our sheep did in the show. From last-minute preparations and sheep showmanship to market lamb competitions and ewe classes, we take you behind the scenes of what it’s really like at a country fair.

We couldn’t be prouder — our girls walked away with wins in both showmanship and breeding ewe classes! Afterwards, we toured the fair, met a beekeeper with fascinating insights, admired other livestock shows, and wrapped up the evening with motocross stunts and a demolition derby!

Sometimes farm life throws curveballs — but today, it gave us the chance to celebrate community, our sheep, and the next generation of shepherds.