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

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 FarmsSunwold 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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EXPLORE Frontenac Provincial Park Hiking Trails!

Video: EXPLORE Frontenac Provincial Park Hiking Trails!

Explore Frontenac Provincial Park hiking trails with The Wandering Shepherds as we leave Ewetopia Farms and sheep farming behind and take a long overdue break hiking through the beautiful forests, lakes, boardwalks, and cliffs of Doe Lake and Arab Gorge Trails in Sydenham, Ontario, Canada. This is how we, as sheep farmers, take a break and soak up the local scenes and nature in our area. Farmers can't leave their farms for long, so these little nearby hiking trails allow that escape from farm life for a few hours before we head back to our working sheep farm for evening chores.