The Tainted History of the Ludington Meat Company

[XLFD]

One year ago, media group Mlive broadcast the formation of the Ludington Meat Company, to be located at the old Staples building across from Meijer's.  Friday, they introduced another article touting the freshly opened business and its innovations, once again introducing the Sanders brothers who founded the business.

                                                                                 Alec and Corey Sanders at their business venture

These articles and the articles of many other local/regional media tout the business and the fact that these brothers are direct descendants of the Custer meat franchise started by Joseph Sanders which bears his name to this day and has a processing and retail business in that small village eight miles to the east.  

What isn't related in these accounts is that the business itself seems to be marinated in a deep scandal where the two proprietors are accused of some serious criminal and civil violations by the original family business in order to make their prime cut in the area.  A civil lawsuit filed back in January of 2021 alleges that the two brothers unlawfully appropriated a large sum of money and family recipe trade secrets.  

Mark Rossman of Rossman P.C. based in Troy, Michigan filed the lawsuit on behalf of the corporation called Jos. Sanders Inc. (aka Sanders Meats) against Alec and Corey Sanders alleging various conversions, extortions, embezzlements, slanders and artifices were perpetrated by the brothers against the family business.  The suit asks for treble monetary damages to reimburse the company for the money allegedly taken and punitive damages for the malicious and intentional acts of the brothers.  

Within the suit we find that the four officers of the board of Sanders Meats, all with the surname of Sanders, allege that Alec was a fellow board member who used his position to initially write out unauthorized checks to Corey (and vice versa) in the amount of $90,000 during the worst times of the pandemic.  In August 2020's board meeting, these actions were caught and Corey was told his indiscretions would keep him from being a shareholder for these unapproved 'advances'.

Undaunted, the brothers once again reportedly appropriated an unauthorized $121,000 more that fall from the company.  Coincidently that same month, the brothers started their own business the "Sanders Meat Company" envisioning a processing and retail facility at the LMC's current location.  Before their formal resignations from the parent company, they allegedly stole the sole copies of jerky recipes along with other proprietary secrets and other sales data.  

The lawsuit has ten counts:

1:  Common Law Conversion

2:  Statutory Conversion

3:  Civil Conspiracy

4:  Misappropriation of Trade Secrets

5-8:  Trademark Infringement/Unfair Competiton Under the Lanham Act/Common Law

9:  Unfair and Deceptive Trade Practices

10:  Breach of Fiduciary Duties

Only one count (2) has a specific amount of financial damages sought, which is $1,266,900.  The facts laid out in the amended complaint seem rather compelling in showing that the Ludington Meat Company's genesis may be a by-product of some inappropriate, illegal, and unlawful behaviors by the brothers against their parent company.  

                                                                Jos. Sanders Inc. (Sanders Meats) in Custer

Last month, Michigan subsidized the brother's business by sending them an additional $100,000 to obtain a thermo-former vacuum packaging machine; the parent company did not receive anything, not even justice for what allegedly happened to them.  Please consider what seems to have happened here when making your meat purchases in Mason County and we will try to keep you informed as to the status of this lawsuit at the Ludington Torch as it progresses further in what will surely be a lengthy process and include any rebuttals from the defendants and their attorney.

[Willy]

This seems to be a family dispute and as we all know in these situations it's often hard to filter out what the truth is and what has really happened, especially with feuding relatives. I'm withholding judgement until the courts settle this. X, have there been any criminal charges filed?

[XLFD]

I'm going to check that out tomorrow, the case appears to be closed in the 51st Circuit Court, but this doesn't mean that the ruling wasn't appealed or that it was modified to become a federal case, more likely it was settled between parties for some undisclosed figures.  A later Motion filed has a lot of supporting evidence including all the checks written by the brothers to each other, the brothers' two bold and unapologetic resignation letters, along with more of the background.  

I can't help but say that it appears as crooked as hell when these two write $121,000 checks to each other from the business just before resigning from and bashing the business, and at about the time they acquire the property the LMC is now at.  I wouldn't step foot in the LMC until they can explain this apparent embezzlement.

[krazzz]

Based on the handwriting, the same person filled out both checks. 

[XLFD]

I think you're correct, but the signatures show that both were involved with cashing in the checks.  Both brats (pardon the meat pun) write very fiery resignation letters that fail to address why they appear to have stolen around $400,000 from the company (counting the other checks found in the motion's exhibits) acting in concert and without any apparent authority.  

Even if this lawsuit was settled out of court by the parties (which I will try to confirm later today) it wouldn't make me ever want to go to Ludington Meat Company to purchase products from such unprincipled people.

[FeliciaStar]

Makes you wonder why the Urkas would get mixed up with these two? Speaks volumes to me. 

[XLFD]

Alec and Corey seem to have the ethics of used car salesmen so maybe they were able to be on Matt Urka's wavelength.  I would not be surprised if Urka was used for his ability to supply them with more money and to use his reputable surname to help secure their spot and achieve additional financing. 

[Sharilyn Rotta]

I had heard of things they had done a long time ago and was wondering why they had not been charged.  I will continue to support Sanders in Custer as I have done for over 50 years.  I have no desire to go to  the store in Ludington even tho it is close.  

[XLFD]

It does look like there should have been charges filed, but that requires the sheriff and prosecutor to coordinate a case-- and for the elder members of the Sanders board to want to press criminal charges against their kids, which isn't a fun thing to do.  The criminal case against the brothers seems to be supported by all those big checks they signed for each other in 2020 and cashed quickly, but the civil case may have been the way chosen by the board, since jail or prison time wouldn't get their money back with interest like a civil suit.

[Willy]

If I'm interpreting this correctly, the case against Alec and Corey is for embezzlement, stealing recipes and using the name of Sanders for themselves in detriment to the previously existing company. I leafed thru the court forms and noticed that most of the complaint revolves around the fact that Alec and Corey are now competitors of the old Sanders company. I'm curious why the law suit does not name the bank that cashed the checks as a Defendant. Why would the bank cash checks if one of the defendants was not on the account or approved to access the account, especially such large checks?  I also do not see any resemblance between the Sanders meat company logo and Ludington meat company logo. The name Sanders does not appear on the Ludington meat company logo. I don't see that using their actual names would constitute any kind of violation. As far as the recipes go, why would they steal the book. Working for the company over time it would not be difficult or unreasonable for someone to naturally absorb that information from continuous exposure to the recipes. Besides who is to say that Alec and Corey are using those recipes. I'm no lawyer but in my opinion the only people that will truly benefit from this family feud will by the lawyers.

[krazzz]

The lawsuit was filed a year and a half ago. Since the business just opened they likely came up with the new name in response to that. 

[shinblind]

Don't know how Sanders of Custer is structured as a business but believe that if there was any impropriety in cashing the checks criminal charges would have been filed. 

I do know that the accusations in the resignation's letters ring true and without the money in hand might have been worded less honestly.

There was a time when I would not touch a Sanders of Custer product. I hope Sanders of Custer learned from their past and do not regress to their previous business practices.

[XLFD]

Do not discount the fact that it is never easy to press serious criminal charges against your own family members, particularly when it has a serious chance to greatly tarnish the brand through the ensuing scandals and isn't likely to retrieve the lost $400,000.  A civil suit requires a lesser legal standard to prove, can usually be attempted without negative publicity or fanfare, and keeps the kids out of jail and able to repay the debt established by the court or settlement, voluntarily or not.