USDA: Wisconsin company president falsified the validity of wooden pallets using USDA stamp – Ripping off $350,000 from a dozen Wisconsin businesses
USDA stamp assured businesses the pallet would not become “infested with insects or microorganisms”
By Greg Peterson
U.P. Breaking News
Owner, News Director
906-273-2433
(Wisconsin/U.P. of Michigan) – A U.S. Justice Department special environmental crimes unit from Washington, D.C. swept into Wisconsin and northern Michigan this week filing federal charges in two ongoing investigations – one about illegal using an agriculture department stamp to sell wooden pallets and the other the illegal packaging of Great Lakes fish in the Upper Peninsula.
49-year-old Russell F. Wetenkamp of Manitowoc,WI – the owner of Timber Creek Resource LLC, a wooden pallet company in Newton, WI – just southeast of Green Bay, WI.
“Timber Creek manufactured, recycled, and repaired wooden pallets at its
Newton facility for use in interstate and international commerce,” the plea agreement states. The “wooden pallets that Timber Creek sold “are required to undergo a
heat treatment process” signified by a U.S. Department of Agriculture stamp.
LinkedIn: Timber Creek Resource, LLC is a specialized supplier of industrial lumber and custom designed pallets, crates, and boxes. We are one of the largest industrial lumber wholesalers and custom crating facilities in the Midwest.
Timber Creek Resource has grown year after year to now include Wisconsin Box Company, Wetterau Wood, and MGD Lumber to better serve our customers. These partnerships help us reduce costs and provide strategic locations around the country as we grow further
Specialties: Custom Wood Packaging for Shipping Manufactured Products
Website
Industry
Packaging and Containers
Type
Privately Held
Headquarters
5059 N 119th Street Milwaukee, Wisconsin 53225 United States
Company Size
201-500 employees
Founded
1956
The federal charges fall under the U.S. Plant Protection Act.
The “heat-treatment process that prevents the wooden pallets from being infested with insects or microorganisms,” federal prosecutors say. “The wooden pallets are also required to be stamped with an International Standards for Phytosanitary Measure (“ISPM-15”) stamp certifying that they have been heat treated.”
In one day, Wetenkamp was quickly charged – and then entered into a plea agreement with federal prosecutors. The scheme ripped off a dozen Wisconsin business to the tune of nearly $350,000, federal prosecutors allege.
On July 19, 2016, “Wetenkamp admitted to a Special Agent from the U.S. Department of Agriculture that” from November 2014 – June 16, 2015 that he “marked and caused the marking of wooden pallets with the stamp” knowing “that the marking falsely indicated that the pallets had been heat-treated by Timber Creek, when in fact they had not been heat-treated.”
Victims of the fraud and how much they lost:
Fraud incurred by a dozen Wisconsin businesses with total losses: $349,365
Aldrich Chemical Company in St. Louis, MO – $447
Brillion Iron Works in Brillion, WI – $120,438
Extrutech Plastics, Inc. in Tallahassee, FL – $168
Fabrico Mequon in Mequon, WI – $3,132
Jagemann Stamping Company in Manitowoc, WI – $58,385
K & L Services, Inc. in Beaver Dam, WI – $2,516
Kohler Co. in Kohier, WI – $18,868
Nemak USA, Inc. in Sheboygan, WI – $95,414
Nemschoff Chairs, Inc in Sheboygan, WI – $1,188
Sheboygan Paint Company in Sheboygan, WI – $519
The Vollrath Company LLC in Sheboygan, WI – $6,497
Wisconsin Aluminum Foundry in Manitowoc, WI – $41,793
To read about the Upper Peninsula fish labeling scandal and other cases:
http://upbreakingnews.com/2017/01/20/UPFedFishProbe
https://upbreakingnews.com/category/fish/
http://chicago.suntimes.com/news/feds-probe-illegal-trafficking-of-great-lakes-fish/
Count 1
November 2014 – June 16, 2015
Wetenkamp “falsely marked and sold wooden pallets” by using a federal stamp “representing that they had been heat-treated” when “they were not heat-treated”
The agriculture department stamp/marking “was a knowing false and material representation that had the capacity to influence the person or entity to which it was made concerning a matter” namely a dozen Wisconsin companies that lost almost 350,000 during the one-year scheme
——-
Count 2:
November 30, 2014 – June 16, 2015Russel Wetenkamp falsely “marked and sold wooden pallets as heat-treated” illegally using a an agriculture department stamp “when in fact they were not heat-treated,” according to a plea agreement entered this week by federal prosecutors – just minutes after filing the first charges in the case.
Wetenkamp knowingly used a federal stamp without the “authority from the
Secretary of the U.S. Department of Agriculture,” the plea agreement states. “As a result of the sales of the wooden pallets falsely marked” with the agriculture department stamp “caused losses of no less than $344,000 to customers of Timber Creek.”
The federal prosecutors in the case are Asst. U.S. Attorney Gregory J. Haanstad and Asst. U.S. Attorney Matthew Jacobs (both of the Eastern District of Wisconsin), and U.S. Justice Department Senior Trial Attorney Daniel W. Dooher, Environmental Crimes Section of the U.S. Department of Justice in Washington, D.C..
Date filed: 01/19/2017
Date of last filing: 01/19/2017
Russel Wetenkamp (1)
Office: Green Bay Filed: 01/19/2017
County: Manitowoc Terminated: Reopened:
Other Court Case: None
Count: 1 Citation: 18:1001.F Offense Level: 4
18:1001(a)(2) False Material Representation
Count: 2 Citation: 7:7734.F Offense Level: 4
7:7734(a)(1)(A)PLANT PROTECTION-VIOLATIONS
Defendant Custody Status:
Defendant: Russel Wetenkamp represented by Thomas E Phillip(Designation Federal Public Defender)
Phone: 920-430-9900
Fax: 920-430-9901
Email: Tom_Phillip@fd.org
Plaintiff: USA represented by Matthew L Jacobs (Designation Assistant US Attorney)
Phone: 414-297-4106
Fax: 414-297-1738
Email: matthew.jacobs2@usdoj.gov
Here is part of the plea agreement with federal prosecutors:
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN UNITED STATES OF AMERICA
Plaintiff
vs
RUSSEL WETENKAMP,
Defendant
PLEA AGREEMENT
1. The United States of America, by its attorneys, Gregory J. Haanstad, United States
Attorney for the Eastern District of Wisconsin, Assistant U.S. Attorney Matthew Jacobs, and Daniel W. Dooher, Senior Trial Attorney, Environmental Crimes Section of the U.S. Department of Justice (collectively “the Government”) and the defendant, Russel Wetenkamp, individually and by attorney Thomas Phillip, pursuant to Rule 11 (c)(1 )(B) of the Federal Rules of Criminal Procedure, enter into the following plea agreement:
CHARGES
2. The defendant has been charged in a two-count information, which alleges
violations of Title 18, United States Code, Section lOO1(a)(2) and Title 7, United States Code, Section 7734(a)(l)(A).
3. The defendant has read and fully understands the charges contained in the
Information. He fully understands the nature and elements of the crimes with which he has been charged, and those charges and the terms and conditions of the plea agreement have been fully explained to him by his attorney.
4. The defendant voluntarily agrees to waive prosecution by indictment in open court.
5. The defendant voluntarily agrees to plead guilty to Counts 1 and 2 of the
Information, a copy of which accompanies this agreement as Attachment A.
6. The defendant acknowledges, understands, and agrees that he is, in fact, guilty of
the offenses charged in Counts 1 and 2 of the Information. The parties acknowledge and
understand that if this case were to proceed to trial, the government would be able to prove the following facts beyond a reasonable doubt. The defendant admits that these facts are true and correct and establish his guilt beyond a reasonable doubt:
(a) The Plant Protection Act (“PPA), 7 U.S.C. § 7734 et seq., was enacted to control
the harm to products in commerce caused by the spread and infestation of
insects and microorganisms. The PPA is administered and enforced by the U.S.
Department of Agriculture. Pursuant to the PPA, and consistent with the
International Plant Protection Convention, wooden pallets that are used in
international commerce are required to undergo a heat treatment process that
prevents the wooden pallets from being infested with insects or
microorganisms. The wooden pallets are also required to be stamped with an
International Standards for Phytosanitary Measure (“ISPM-1 5”) stamp
certifying that they have been heat-treated in compliance with the PPA.
(b) From in or about May 2014 until in or about June 2015, Defendant Russel
Wetenkamp was the site manager at the Timber Creek Resource, LLC (Timber
Creek) facility located in Newton, Wisconsin.
(c) Timber Creek manufactured, recycled, and repaired wooden pallets at its
Newton facility for use in interstate and international commerce.
(d) As required by the PPA, wooden pallets that Timber Creek sold for use in
international commerce from its Newton facility were required to undergo a
heat treatment process. Once heat-treated, each wooden pallet was required to be marked with an approved ISPM- 15 stamp to indicate that it had been heat-treated in compliance with the PPA.
(e) Pursuant to the PPA, the Secretary of Agriculture authorizes domestic
industry organizations to issue ISPM-1 5 stamps to facilities such as Timber
Creek that manufacture, recycle and repair wooden pallets for use in
international commerce. Timber Products Inspection, a member of the
American Lumber Standards Committee, was authorized by the Secretary of
Agriculture to issue ISPM-15 stamps.
(f) On or about July 2014, Timber Products Inspection issued an ISPM- 15 stamp, with the markings “US-167976 HT TP,” to Timber Creek. Thereafter, Timber Creek was authorized to sell wooden pallets bearing this stamp to customers for use in international commerce, as long as the pallets were properly heattreated.
(g) From in or about November2014, until on or about June 16,2015, at the Timber
Creek facility located in Newton, Wisconsin, Wetenkamp knowingly marked
and caused wooden pallets to be marked with stamp US-167976 HT TP,
representing that the pallets had been heat-treated, when in fact those pallets
had not been heat-treated.
(h) Wetenkamp also caused the pallets bearing stamp US-167976 HT TP to be sold
to numerous customers in the United States for use in international commerce.
Invoices and receipts issued to customers who purchased the wooden pallets
marked with stamp US-167976 HT TP also falsely represented that the pallets
had been heat-treated.
(i) On or about July 19, 2016, Wetenkamp admitted to a Special Agent from the
U.S. Department of Agriculture that from in or about November 2014 until on
or about June 16, 2015, he had marked and caused the marking of wooden
pallets with the stamp US- 167976 HT TP, and knew at the time that the marking falsely indicated that the pallets had been heat-treated by Timber Creek, when in fact they had not been heat-treated.
(j) With regard to Count 1, from no later than November 2014 until on or about June 16, 2015, Wetenkamp falsely marked and sold wooden pallets with stamp US-167976 HT TP, representing that they had been heat-treated, when in fact they were not heat-treated, thereby making a false material representation in a matter within the jurisdiction of an agency of the United States. That is, the marking was a knowing false and material representation that had the capacity to influence the person or entity to which it was made concerning a matter within the jurisdiction of the U.S. Department of Agriculture.
(k) With regard to Count 2, from no later than November 30,2014, until on or about
June 16, 2015, Wetenkamp falsely marked and sold wooden pallets as heattreated
with stamp US- 167976 HT TP, when in fact they were not heat-treated,
thereby knowingly using stamp US-167976 HT TP without authority from the
Secretary of the U.S. Department of Agriculture.
(1) As a result of the sales of the wooden pallets falsely marked with stamp
US-167976 HT TP, Wetenkamp caused losses of no less than $344,000 to
customers of Timber Creek.
PENALTIES
7. The parties understand and agree that the offenses to which the defendant will enter
a plea of guilty carry the following maximum terms of imprisonment and fines: Count 1: Five years’ imprisonment; a fine of up to $250,000 or twice the pecuniary loss or gain resulting from the offense, whichever is greater, and a maximum of three years of supervised release to follow any term of imprisonment. Alternatively, the defendant may be sentenced to not less than one and
not more than five years of probation. The count also carries a mandatory special assessment of $100. Count 2: One year of imprisonment; a fine of up to $100,000 or twice the pecuniary loss or gain resulting from the offense, whichever is greater; and a maximum of one year of supervised release to follow any term of imprisonment. Alternatively, the defendant may be sentenced to up to five years of probation. The count also carries a mandatory special assessment of $25. The parties further recognize that a restitution order may be entered by the court. The parties’ acknowledgments, understandings, and agreements with regard to restitution are set forth in paragraph 31 of this agreement.
ELEMENTS
8. The parties understand and agree that in order to sustain the charge of making a
false statement as set forth in Count 1, the government must prove each of the following
propositions beyond a reasonable doubt:
First, the defendant made a representation; and
Second, the representation was false; and
Third, the representation was material; and
Fourth, the defendant made the false representation knowingly and willfully; and
Fifth, the defendant made the representation in a matter within the jurisdiction of
the executive branch of the government of the United States.
9. The parties understand and agree that in order to sustain the charge of unauthorized
use of an ISPM-15 stamp, as set forth in Count 2, the government must prove each of the following propositions beyond a reasonable doubt:
First, the defendant used a certificate, permit or other document issued pursuant to
the Plant Protection Act; and
Second, without authority from the Secretary of the U.S. Department of
Agriculture; and Third, the defendant acted knowingly.
SENTENCING PROVISIONS
10. The parties agree to waive the time limits in Fed. R. Crim. P. 32 relating to the
presentence report, including that the presentence report be disclosed not less than 35 days before the sentencing hearing, in favor of a schedule for disclosure, and the filing of any objections, to be established by the court at the change of plea hearing.
11. The parties acknowledge, understand, and agree that any sentence imposed by the
court will be pursuant to the Sentencing Reform Act, and that the court will give due regard to the Sentencing Guidelines when sentencing the defendant.
12. The parties acknowledge and agree that they have discussed all of the sentencing
guidelines provisions which they believe to be applicable to the offenses charged in Counts
1 and 2 of the Information. The defendant acknowledges and agrees that his attorney in turn has discussed the applicable sentencing guidelines provisions with him to the defendant’s satisfaction.
13. The parties acknowledge and understand that prior to sentencing the United States
Probation Office will conduct its own investigation ofthe defendant’s criminal history. The parties further acknowledge and understand that, at the time the defendant enters a guilty plea, the parties may not have full and complete information regarding the defendant’s criminal history. The parties acknowledge, understand, and agree that the defendant may not move to withdraw the guilty plea solely as a result of the sentencing court’s determination of the defendant’s criminal history.
Sentencing Guidelines Calculations
FINANCIAL MATTERS
27. The defendant acknowledges and understands that any and all financial obligations
imposed by the sentencing court are due and payable in full immediately upon entry of the
judgment of conviction, or upon further order of the Court. The defendant further understands
that any payment schedule imposed by the sentencing court shall be the minimum the defendant
is expected to pay and that the government’s collection of any and all court imposed financial obligations is not limited to the payment schedule. The defendant agrees not to request any delay in payment of any financial obligations imposed by the court.
28. The defendant agrees to provide to the Financial Litigation Unit (FLU) of the
United States Attorney’s Office, at least 30 days before sentencing, and also upon request of the FLU during any period of probation or supervised release imposed by the court, a complete and sworn financial statement on a form provided by FLU and any documentation required by the form.
VOLUNTARINESS OF DEFENDANT’S PLEA
39. The defendant acknowledges, understands, and agrees that he will plead guilty
freely and voluntarily because he is in fact guilty. The defendant further acknowledges and agrees
that no threats, promises, representations, or other inducements have been made, nor agreements reached, other than those set forth in this agreement, to induce the defendant to plead guilty.
ACKNOWLEDGMENTS
I am the defendant. I am entering into this plea agreement freely and voluntarily. I am not
now on or under the influence of any drug, medication, alcohol, or other intoxicant or depressant,
whether or not prescribed by a physician, which would impair my ability to understand the terms
and conditions of this agreement. My attorney has reviewed every part of this agreement with me
and has advised me of the implications of the sentencing guidelines. I have discussed all aspects
of this case with my attorney and I am satisfied that my attorney has provided effective
assistance of counsel.
RUSSEL WETENKAMP
Defendant
ATTACHMENT A
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WISCONSIN
UNITED STATES OF AMERICA,
Plaintiff,
v.
RUSSEL WETENKAMP,
Defendant. INFORMATION
COUNT 1
THE UNITED STATES ATTORNEY CHARGES:
1. At all times relevant to this Information:
a. Defendant Russel Wetenkamp was the site manager at the Timber Creek
Resource, LLC facility, located in Newton, Wisconsin.
b. Timber Creek Resource manufactured, recycled, and repaired wooden pallets at its Newton facility for use in interstate and international commerce.
c. The Plant Protection Act (“PPA), 7 U.S.C. § 7734 et seq., was enacted to control the spread and infestation of harm caused by insects and microorganisms to products in commerce. The PPA is administered and enforced by the U.S. Department of Agriculture. Pursuant to the PPA, wooden pallets that are used in international commerce are required to undergo a heat-treatment process that prevents the wooden pallets from being infested with insects or microorganisms. The wooden pallets are also required to be stamped with an International Standards for Phytosanitary Measure (“ISPM-1 5”) stamp certifying that they have been heat treated in compliance with the PPA.
d. As required by the PPA, wooden pallets that Timber Creek Resource sold
for use in international commerce from its Newton facility were required to undergo a heattreatment process. Once heat treated, each wooden pallet was required to be marked with an approved ISPM- 15 stamp to indicate that it had been heat treated in compliance with the PPA.
e. Pursuant to the PPA, the Secretary of Agriculture authorizes domestic
industry organizations to issue ISPM- 15 stamps to facilities such as Timber Creek
Resource that manufacture, recycle and repair wooden pallets for use in international
commerce.
f. In or about July 2014, Timber Creek Resource was issued an ISPM-15
stamp, with the marking “US-167976 HT TP,” by a domestic industry organization
authorized by the Secretary of Agriculture. Timber Creek Resource was authorized to sell wooden pallets bearing this stamp to customers for use in international commerce, as long as the pallets were properly heat treated.
2. During the period from at least November 30, 2014, until on or about June 16, 2015,
in the State and Eastern District of Wisconsin, RUSSEL WETENKAMP did knowingly and willfully make and cause to be made a false material representation in a matter within the jurisdiction of the U.S. Department of Agriculture, an agency of the executive branch of the United States; namely, marking wooden pallets with stamp US- 167976 HT TP to represent that the wooden pallets Timber Creek Resource sold to its customers had been heat treated, in compliance with standards promulgated by the U.S. Department of Agriculture, when in fact, as the defendant well knew, the pallets had not been heat treated.
All in violation of Title 18, United States Code, Section 100 1(a)(2).
THE UNITED STATES ATTORNEY FURTHER CHARGES:
3. The allegations set forth in paragraph 1 of this information are incorporated in
support of this charge as if alleged here in full.
4. From at least November 30, 2014, until on or about June 16, 2015, in the State and
Eastern District of Wisconsin, RUSSEL WETENKAMP did knowingly use and cause the use of stamp US-167976 HT TP without authority from the Secretary of the U.S. Department of Agriculture; namely, marking wooden pallets with stamp US-167976 HT TP to represent that the wooden pallets Timber Creek Resource sold to its
customers had been heat treated, in compliance with standards promulgated by the U.S.
Department of Agriculture pursuant to the PPA, when in fact the pallets had not been heat treated. All in violation of Title 7, United States Code, Section 7734(a)(1)(A).
Date GREGORY J. HAANSTAD
United States Attorney
United States v. Wetenkamp
Upper Peninsula Breaking News by Greg Peterson 
