Oct 22, 2007 2:58 pm US/Central
Imitation Cheese Proves Costly To Elgin Firm
ELGIN, Ill. (Sun-Times Media Wire) ―
It took two years, but a northwest suburban cheese-processing operation that found itself in legal trouble in 2005 has been ordered to pay up.
A judge earlier this month ruled against Grater Inc. in a civil suit claiming the company sold imitation cheese as the genuine article. A Cook County judge ordered Grater to pay $2.8 million in damages plus attorneys' fees to Louisiana-based K-4 Enterprises.
The complaint alleged Grater -- whose Spring Street operation in Elgin would slice and package blocks of cheese for distribution -- used imported products not made from real cheese, mixed them with real cheese and sold mislabeled products to clients. Fast-food eateries such as McDonald's, Wendy's and Burger King bought food products from Grater, The Elgin Courier News previously reported.
It also was claimed the firm consciously employed illegal immigrants.
K-4 and MS Produce, another plaintiff in the suit, had provided consultants to Grater to help with marketing strategies. Once the consultants discovered the company's illegal cheese-processing practices, they brought the issue to management and subsequently were fired, according to reports.
Months before the suit, the U.S. Department of Labor ordered Grater Inc. to pay 108 employees more than $180,000 in back wages. According to the department, during the entirety of 2003, workers were putting in anywhere from 50 to 70 hours per week and not being paid overtime and managers were not keeping accurate time sheets.
Grater now is called Arthur Schuman Midwest and operates a cheese plant on Technology Drive in Elgin. According to its Web site, the company provides more than 70 million pounds of sliced, shredded, shaved and grated cheese per year and passes annual audits performed by outside agencies.
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(Source: Sun-Times Media Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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