I. Donald Gibb to John Stahl, Minister, Starland 
Hutterian Brethren, 6/5/92
File I
 NOTE: EXHIBITS refer to appended documents the 
correspondent included, but are not included here.
Dear Reverend Stahl:
My relationship with the Hutterites goes back to my 
days as a youth on our farm at Rosebank, Manitoba, when 
one night two strange men with beards appeared at our 
door wanting to speak to my father to request his 
signature on a petition to permit their new Miami Colony 
to establish a school on the Colony for its children.  There 
was a lot of emotion and acrimony circulating in the 
community at the time related to the Colony purchasing 
farmland in the area, fearing it would drive up land prices 
and ruin the small towns.  Following a long and wide-
ranging philosophical discussion, my father was pleased to 
sign the petition.  As one of the more respected members 
of the community, this seemed to turn the tide of local 
public opinion in the Colony's favor.
Subsequently, our family became good friends with 
the Hutterite people on this and neighboring Colonies. 
When I joined The Royal Bank of Canada as Manager of its 
Agriculture Services Department for the Manitoba region, I 
proceeded to work with the Manitoba Colonies as best I 
could to assist with financing of land purchases for new 
Colonies and the expansion of existing units, in addition to 
providing funds for machinery and equipment purchases 
and operating expenses.  I continued to work with the 
Canadian Colonies when I moved on to head Bank of 
Montreal's National Agricultural Services Department.
When I ran for political office in Manitoba, several 
members of the Miami and Darlingford Colonies purchased 
memberships in the Manitoba Conservative Party in order 
to vote for me at the nomination meeting held in Miami, 
Manitoba.  Fortunately there was not enough support at 
the meeting to get me elected!  During this period in my 
life, a number of Ministers and Secretary-Treasurers of the 
Manitoba Colonies became, and continue to be, among my 
best friends.
In 1981, when I joined the First National Bank of 
Chicago ("First Chicago") in Chicago, I had the opportunity 
to visit the Colonies in South and North Dakota.  I realized 
their banking services were far inferior to the services 
offered to their Brothers in Canada through the Canadian 
banks.  To remedy this, I set up a lending program for 
approximately 40 U.S. Colonies at First Chicago, but realized 
what was needed in the U.S., because of the very different 
nature of its banking systems, was a Bank controlled by 
the Hutterites, for Hutterites.  When I left First Chicago for 
Rabobank Nederland in New York, I again was working 
with the Hutterites through Jacob Kleinsasser to accomplish 
this goal.  The rest is history recorded below and in the 
narrative attached.
The purpose in bringing the attached information to 
your attention relates to my complete repugnance and 
dismay at recently learning that in 1991, Bishop 
Kleinsasser, through Barney Martin of H.B. Credit, 
compromised the Rosedale loan at Rabobank for 
$651,640.98 plus unpaid legal costs related to these loans 
(I had left Rabobank in 1988).  In attendance at the legal 
mediation from the Hutterite Community, besides Barney 
Martin, were two Senior Elders from the Canadian Colonies 
and three representatives from Rosedale.
When you read the background details leading up to 
this act, you will agree this action was not characteristic of 
the traditional values of the Hutterites.  Such actions 
indicate several senior members of the Hutterite Church 
have lost their way to personal greed and the desire for 
more power.
Attached is a lengthy analysis and factual background 
narrative on the various misadventures incurred over 
approximately the past decade by, generally, the Rosedale, 
Millbrook and Crystal Spring Colonies and involving 
especially Mike Waldner and Bishop Jacob Kleinsasser, 
amongst others.
What follows is a sad story of incompetence, 
inexperience, and ineptitude, all compounded by lying, 
deceit, misrepresentation and outright theft of Hutterite 
Brethren Colony resources.  My calculations indicate a loss 
to the Colonies of at least $8 million but this figure may be 
too low due to the lack of audited figures and a general 
shortage of "hard" financial data available to me.
From dozens of ill-conceived and even some illegal 
actions it is difficult to choose even a cross-section of these 
malefactions.  However I offer the following ten examples 
with confidence they are a fair sample of these many 
wrongdoings.
I preface these with the observation that while 
Michael Waldner is frequently seen with the "smoking 
gun," he could not have done these things without the 
knowledge and approval of Bishop Jacob Kleinsasser.
1. These problems begin with a Power of Attorney 
dated March 24, 1982, granted by Jacob Kleinsasser to 
one Alfred L. DeLeo and Harold E. Cornell, originally of 
Long Island, New York.  Ostensibly retired school 
teachers, both were practicing homosexuals with little or 
no financial or business experience.  These two 
individuals and their company Dell-Cornell, squandered 
millions of Colony dollars on unwise, unsupervised, and 
highly dubious investments.  Both went to jail for crimes 
against the Colonies; DeLeo was jailed a second time on 
other fraud-related charges.  Such people were given 
extraordinary powers by the Bishop to literally do 
anything for the Colonies, and with the Colony's money 
at that.  (EXHIBIT 3)
2. On November 14, 1983, Mike Waldner, Minister 
of Millbrook Colony (months after he had resigned as 
President of Rosedale Colony) gave an unbelievable 
Commitment and Power of Attorney to DeLeo, Cornell 
and Dell-Cornell which:
A) Committed Rosedale to guarantee financially 
anything they did.
B) Waived Rosedale's unusual legal rights.
C) On behalf of The Hutterian Brethren 
Church and other Colonies, as well as 
Rosedale, gave to the above trio 100% ownership of 
anything they negotiated on behalf of the 
Church and the Colonies!
D) Reconfirmed twice more than anything this trio 
"touched" on behalf of the Church, Rosedale or 
other Colonies, nationally or internationally, 
would 100% become their property!
N.B.  The document specifically commits ALL 
Hutterite Colonies as well as the entire Hutterian 
Brethren Church, in a clear violation of the Hutterian 
Brethren Church's Constitution of 1954.  This is 
patently illegal to say nothing of being totally 
immoral.       (EXHIBIT 25)
3. On June 18, 1982, Mike Waldner resigned as 
President and Minister of the Rosedale Colony.  Yet later 
throughout 1983, when he was no longer associated with 
Rosedale, he continued to sign documents as its 
President.  For example see EXHIBITS 12-14.  As late as 
May 3, 1984, Waldner was still signing documents as 
President and Minister of Rosedale Colony (EXHIBITS 72-
73).  In fact, as late as 1990, EXHIBIT 85 bears the 
signature blocks for Michael Waldner as President and 
Minister of both Millbrook and Rosedale Colonies, a clear 
violation of Hutterian Brethren Canons.
4. Jacob Kleinsasser has fostered a major problem 
amongst the Colonies concerning the patent rights to a 
wet and dry hog feeder.  This device was apparently 
invented at Lakeside Colony although the resolution has 
been left up to the Canadian Supreme Court.  Jacob 
Kleinsasser allowed his brothers, Danny and Jonathan, to 
register a patent on this feeder who then assigned the 
patent rights in Canada to the firm C & J Jones (1985) 
Manitoba Ltd.
The Jones-Crystal Spring deal on this feeder allows 
them to sue for patent infringement protection and after 
legal costs, share 50:50 the proceeds from such lawsuits.  
Most of the patent infringement lawsuit 
payments to date have come from other 
Colonies, and at May, 1989, Crystal Spring is reported 
to have received as much as $500,000 from patent 
settlements from other Colonies.
      (EXHIBIT 110)
The concept of one Colony suing another and receiving 
monetary gain (if through the Jones front) seems strikingly 
un-Hutterite and wrong by any standard.
5. In 1985, Atlanta attorney J. Stuart Youngblood 
was retained by Jacob Kleinsasser to be his "eyes and 
ears" at WELK.  Youngblood wrote to myself at Rabobank 
on December 13, 1984, with a copy to Jacob Kleinsasser, 
that it was his opinion that the ill-fated Consumers Bank 
equipment leasing matter could be settled for about $1 
million.  (EXHIBIT 99)
This leads to the interesting question as to why Bishop 
Kleinsasser promptly agreed to settle the Consumers Bank 
lawsuit at literally their then-asking price of $2,040,000, 
plus an estimated $1 million in associated legal costs.  This 
"quick fix settlement" strongly implies that the Bishop did 
not want the known fraudulent elements of this 
transaction to surface.  (EXHIBIT 27)
The consumers Bank settlement later saddled Rosedale 
and Crystal Spring Colonies with an unjustified $750,000 
each, in debt.  While attorney Youngblood's opinion on a $1 
million settlement with Consumers Bank was ignored, it is 
interesting that he was respected enough to be retained for 
an opinion about possible dishonesty in the Hutterites' oil 
and gas leasing matter.  He found poor business judgment, 
but no dishonesty.  (EXHIBIT 39)
6. One of the clearer examples of "sticky fingers" 
on Colony monies is the utterly unbelievable sum of 
$44,372 to register three semi-trailer trucks which even 
today is only a few hundred dollars.  Nobody was 
"watching-the-far-away-store" in Florida, so people helped 
themselves, inevitably.  (EXHIBIT 114)
7. Mike Waldner, again with what had to be Bishop 
Kleinsasser's knowledge, had personal ownership 
of 2000 shares of RIDON, the general partner in the ill-
fated WELK partnership.  Later Don Edel transferred to 
Mike Waldner an additional 3000 RIDON shares so that 
Mike became the sole and personal owner of that 
entity.
      (EXHIBIT 44 and 111)
Further, Don Edel later transferred to Mike Waldner's 
personal ownership his 12% interest in the output of 
the Alexander oil wells.
Mike Waldner's personal ownership of both the 
above properties is another clear violation of Hutterite 
Canons.
8. Another of Mike Waldner's dubious practices 
was to give and/or allow DeLeo and Cornell to have or use 
titles such as "Chief Financial Investment Officers" and 
"Secretary-At-Large" of Rosedale.  (EXHIBITS 12, 13 and 
113)
9. A critical failure of Bishop Kleinsasser and Mike 
Waldner was to allow DeLeo, Cornell and others to make 
remote and grossly-unfamiliar-to-the-Hutterites 
investments in such things as a clock factory, a plastics 
plant, oil and gas properties, oil well servicing 
equipment, gold mining equipment and other matters 
totally unfamiliar to a basically agrarian people.
10. One of the most inexplicable events in this 
whole unsavory mess was the decision of Jacob 
Kleinsasser, through Barney Martin of H.B. Credit, to 
compromise Rabobank for $651,640.98 plus legal fees in 
1991 related to the repayment of the Millbrook and 
Rosedale loans.  This was done in spite of Jacob 
Kleinsasser's personal word to Hugo Steensma, General 
Manager of Rabobank, and I that he would personally 
see to it that any loans the Bank granted to the Colonies 
would receive his personal supervision to ensure their 
terms and conditions were scrupulously met.  This 
compromise was made in spite of Rabobank's financial 
support to Millbrook and Rosedale to "bail out" Crystal 
Spring from the flawed and fraudulent Consumers Bank 
lawsuit.  Without Rabobank's financial support at that 
time, Rosedale and, in all likelihood Crystal Spring, would 
have both failed due to a lack of liquidity when forced 
by the courts to provide the funds required to settle the 
Consumers lawsuit.
This chain of unfortunate, costly and dangerous events, 
only ten of which are highlighted above, was set in motion 
by Bishop Kleinsasser when he issued the March 24, 1983, 
Power of Attorney to DeLeo and Cornell.  These two could 
have been little more than strangers to the Bishop, yet he 
gave them vast powers to commit Crystal Spring and the 
entire Hutterian Brethren Church, and claiming falsely that 
the Church Board had concurred with, and approved of, 
this empowerment.
The end result was lies were told; several elements of 
fraud were committed; at least one Colony was severely 
deceived; fundamental Hutterite beliefs and canons were 
violated; friendship and reputations were damaged or 
destroyed; DeLeo and Cornell went to jail; and the Colonies' 
capital depleted by at least $8 million. 
   (Appendix II)
This sad litany is a sober indictment of Bishop 
Kleinsasser and his badly flawed judgment, and an even 
worse indictment of Mike Waldner, his lieutenant.  Surely 
this is no way for a Bishop to treat his Brothers.
Signed, I. Donald Gibb
I. Donald Gibb
12 Pin Oak Lane
Cos Cob, CT  06807
 Click here to get back to The 
Peregrine Archives Page.