Tri Valley Growers suffered from a lack of financial oversight in fiscal year 1997, when it went several months without a controller, according to a confidential memo written by the co-op's auditor. The lawsuit was filed in September 1998 and has yet to go to trial. The confidential memo is among boxes of documents unsealed this week by a San Francisco Superior Court judge at the request of The Bee.
Additional documents remain under seal.
The co-op's primary bank account, the Harris Trust Bank account, had not been reconciled since December 1996. Many of the co-op's other accounts also were not current. It noted that Tri Valley had since hired a controller, but that the problems had yet to be resolved. The total could grow if losses continue to pile up. It alleges that revenues were misrepresented by the entry of sales before payment was received.