Company investigation determines former CEO “disguised” creamery’s performance

Originally published in the "3-26-09" issue.

A Humboldt Creamery law firm and accounting firm have determined that former CEO Rich Ghilarducci allegedly manipulated financial data that “disguised the true operational performance” of Humboldt Creamery, LLC.

Creamery officials issued a press release late Tuesday stating that the Orrick Law Firm of San Francisco, along with Hemming Morse Accounting, also of San Francisco, have determined that Ghilarducci allegedly overstated inventory levels and accounts receivable and understated accounts payable.

The press release states that the creamery is unable to release full details of the investigation and findings due to ongoing criminal investigations.

“The CEO’s manipulation resulted in the presentation of inaccurate financial statements to lenders, the minority partner, board members and potential investors,” states the release.

As to how much the books were off or how long the alleged “manipulation” had been going on, creamery officials wouldn’t say.

Calls to Ghilarducci’s attorney by The Enterprise were not returned.

Meanwhile, creamery officials met with the 50 member/owners on Monday for more than three hours at the fairground’s Turf Room.

Producer Jim Regli said the members were informed on what parts of the cooperative were “making money and what’s not.

“We were also told how important it is to relay the message to the community how important this industry is and the domino effect this all could have,” said Regli, noting that discussions with the creamery’s banks are ongoing.