The Citizen, 1990-01-03, Page 7THE CITIZEN, WEDNESDAY, JANUARY 3, 1990. PAGE 7.
Henschel nearly pulled off his perfect crime
Court evidence shows complicated scheme
to defraud nearly worked but for a
suspicious western cattleman
Evidence given in the case of
Klaus Henschel in Provincial Crim
inal Division Court in Goderich
Dec. 19 reads like a movie plot full
of financial scheming, foreign in
trigue and elements of old time
cattle rustling.
Huron County Crown Attorney
Robert Morris tried to outline for
Judge R. G. E. Hunter, the details
of Mr. Henschel’s plan to make off
with three-quarters of a million
dollars while bankrupting his com
pany, Brussels Stockyards Limited
in Oct. of 1988. Mr. Morris’ brief
ran to 15 typewritten pages. Mr.
Henschel’s attorney Fletcher Daw
son agrees that all but a few minor
details of Mr. Morris’s account of
the crime were accurate as Mr.
Henschel pleaded guilty to theft of
1103 head of cattle valued at
$685,000 mostly from western Can
adian cattle producers and
$104,330 in money from Brussels
Stockyards (which ultimately came
out of the pockets of local cattlemen
when the bank refused to honour
cheques from the company in
payment for cattle sold through the
Stockyard the Friday before Mr.
Henschel disappeared with the
money. (Most of the money was
later recovered through the Live
stock Protection Fund co-ordinated
by the Ontario Ministry of Agricul
ture and Food).
Mr. Henschel will be sentenced
Feb. 5 in court in Goderich follow
ing the reading of a pre-sentence
report.
Much of Mr. Morris’ account
was pieced together through the
help of Mr. Henschel’s cousin
Juergen Buettemeyer of Mount
Elgin who co-operated with police
in the investigation. He had been a
key figure in helping Mr. Henschel
with his scheme after being ap
proached by Mr. Henschel in
September, 1988, nearly two
months before Klaus and Kristin
Henschel and their two children
fled to West Germany via Amster
dam.
It was about that time that Mr.
Henschel apparently realized the
Stockyard was not generating
money at the rate he had figured it
would when he bought it May 1,
1987. Klaus cooked up a scheme to
try to get a great deal of money
quickly, abandon the business and
take his family to Germany to live.
After getting the help of his
cousin, Klaus rented a barn in the
Beachville area and began a plan to
house cattle there that had been
taken from the Stockyards’ own
feedlots or had been ordered by the
Stockyards but never sold through
the yard. The cattle would then be
diverted to other auction barns in
Toronto, Denfield, Cargill, Milver
ton, Hanover and Listowel. He told
his cousin that the money raised
from the sale of the cattle would
finance the purchase of land for a
new venture of Klaus’ at Ingersoll.
As the scheme was being put
into place, Klaus was ordering
cattle from western livestock pro
ducers. Normally the buying was
directed by Mr. Henschel but was
done by Keith McLean, but now he
began doing direct ordering, with
out either Mr. McLean or Marie
McCutcheon, bookkeeper at the
Stockyard, knowing. Delivery dates
were set for the orders but the
producers were told to have the
transport drivers telephone Klaus
at his residence rather than at the
yard before they arrived in Brus
sels.
The cattle never arrived in
Brussels but were diverted to the
barn at Beachville where they were
unloaded and, within hours, were
usually loaded onto different trucks
by Mr. Beuttemeyer and shipped to
other auctions under the name of a
fictitious company Oxford Live
stock. Mr. Beuttemeyer dealt with
these auctions, as instructed by
Klaus, under the name Joe Sween
ey.
Auction records show 101 head
of cattle sold at Milverton for
Oxford Livestock for a price of
$50,281.99; 51 head at Listowel for
$25,797.75; 42 head at Hanover;
143 head at Cargill; 396 head for
$213,174.14 at Denfield on six
dates; and 397 head on five dates in
October at three Toronto auctions
for $269,045.61 with all the
cheques being picked up by “Joe
Sweeney’’. In all cases the money
was deposited in the account of
Oxford Livestock in the Royal Bank
in Ingersoll. The net value of the
sale of the 1103 head of cattle was
$685,950.
Later investigation would show
that Brussels Livestock had an
inventory of about 490 cattle on
area feedlots valued at $417,303.39
but all of 100 head of these
disappeared, apparently sold as the
property of Oxford Livestock.
Max Fried of Les Enterprises
Max Fried of Montreal had shipped
80 head to Brussels Stockyards in
September of which 46 were sold
and Mr. Fried was paid. Mr. Fried
and Mr. Henschel agreed the other
34 would be kept on feed at a
Brussels feedlot and whatever ad
ditional profit was made would be
split between the two companies.
The 34 head, valued at $13,273 also
disappeared, apparently sold by
Oxford Livestock.
Mr. Buettemeyer later told
police that throughout October
1988 he would pick up cheques for
Oxford Livestock the day after each
sale, take them to the bank of the
company issuing them and pay to
have them certified. He’d then
meet Klaus in either Ingersoll or
Brussels and Klaus would give him
deposit slips to deposit the money
in the Oxford account in the Royal
Bank in Ingersoll.
The scheme began to unravel
Continued on Page 9
Happier times
Klaus Henschel had a happier time in May 1987 when he took over Brussels Stockyards from the
McCall family. Seventeen months later, not making money as fast as he had planned, he plotted to
recoup his losses through fraud and start a new life in West Germany.
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