Long post By Anthony Lombardo, who was a salesman during the BlackJack Years. He goes by
Bladeandbarrel
here. It's an interesting historical look at Stewart -
Anthony Lombardo
·But the Stewarts are still posting all over the internet like nothing has happened....
I worked for Mike at Blackjack Knives circa 1995 as a sales rep. I worked hard for Mike but in the end, the promises, lies, tall tales and BOUNCED paychecks were too much to take. The rumors coming out of the factory were unreal. I have heard ALL OF THIS BEFORE ..
Lets frame it up-at Pacific Cutlery, Mike was VP of Sales and Marketing-bad decisions importing Japanese Knives put Pacific out of business. Blackjack 1 was born from in 1987 that with an investor named Steven Lewis from South Africa. Blackjack California (Blackjack 1) imported high quality knives designed by custom makers (and Mike) from Japan's top contract makers. The knives were high quality but the designs were unconventional, maybe a little goofy and the business failed and in 1991 was reborn in Effingham, IL. as Blackjack 2 .
Why Effingham, IL? The local community there was impoverished and there were multiple tax and loan incentives for small manufacturers using local labor. Local businessmen invested in the business and everyone lost their money. Lots of promises, etc were made.
It's important to understand that Mike Stewart (Real name Daniel Nigro) had no background in engineering, design or manufacturing. He wasn't a knifemaker. He was a knife enthusiast who had a host of prior failed business ventures including restaurants and a Milwaukee gun shop. He was an early custom knife dealer and made a point to be connected.
He knew people. When he would pitch to local investors and others he would toss the names around of all the people that Blackjack was working with. Mike was marketed as "one of the top 5 knife designers in the world", when all he did was trace patterns on a lightbox in his office. He had no design or mechanical talent. He was never able to design a folding knife. He had met makers at big knife shows and promised them lucrative royalty deals. He was propped up by dealers like AG Russell, Jeff Loffer and other. Highly influential knife writer and Editor of the DBI knives annuals, Ken Warner was a shareholder in Blackjack knives. Mike was essentially protected by these people.
He made Ken's pet projects. He gave the dealers special prices and let them steer the company. They introduced him to famous makers like Bill Moran, Bob Loveless, Jerry Fisk, etc. When Ethan Becker needed a contract manufacturer he went into business with Mike to make and sell the Becker Knife and Tool line-FYI Blackjack never paid Ethan a red cent, in fact the project ended up costing him money.
During this time Blackjack purchased the rights to Ek knives, a legendary combat knife company. They did this because Ek was very easy knife to make with a built in customer base-simple blades with cord wrapped handles or heavy slabs. The buyout of Ek came with a warehouse full of fully ground blades, parts and sheaths from ASIA...the Ek Blades were marketed as USA 440C but they were in fact AUS6 from Japan-BOOM... Some of the Ek fighting knives were being blown out to dealers for $12-13.
The big jobbers loved Ek-a historic knife that used to sell for $129 was now a closeout at Cutlery shoppe and Brigade Quartermasters for $29.95. Mike killed the brand.
Blackjack ended up as a blight on the Effingham community. See below. Even though there was evidence linking Mike to years of fraud and unethical business practices they only got him on one charge.
"Stewart accused of bank fraud; former Effing resident was founder of Black Jack Knives
Jan 7 2000 12:00AM By By DONNA RILEY-GORDON Daily News
The founder of Black Jack Knives, which had facilities in Effingham and St. Elmo, appeared before a U.S. magistrate judge in federal court in East St. Louis Thursday on charges of bank fraud.
Michael Stewart, 51, of Gladstone, Mich., and a former resident of Effingham, was indicted by a federal grand jury for bank fraud on Dec. 15, according to a press release from W. Charles Grace, U.S. attorney for the southern district of Illinois.
The federal indictment charges Stewart with defrauding the Murphy Wall State Bank in Pinckneyville starting in May 1995. The indictment states that the bank lost $500,000 as a result of the alleged bank fraud scheme.
If convicted, Stewart faces up to 30 years imprisonment, a fine of not more than $1 million and a term of at least three years and not more than five years supervised release following incarceration.
An investigation, which resulted in Stewart's indictment, was conducted by special agents of the Federal Bureau of Investigation assigned to the Bureau's Effingham field office.
The case has been assigned to Assistant U.S. States Attorney Robert L. Garrison for trial.
Stewart moved his company, founded in 1987, from Los Angeles to Effingham in 1991. In early 1995, St. Elmo city officials began talking about foreclosing on Black Jack Knives, which had fallen four months behind on its Community Development Assistance Program loan. At that time, St. Elmo Mayor John Spitler said late payments were a common occurrence.
Although Black Jack paid the amount owed to St. Elmo in one lump sum, money problems continued to plague the company until it closed its doors a few years later. Before the company completely shut down, employees were working without getting regular paychecks or received paychecks that bounced. Before long, Black Jack Knives had filed for Chapter 11 bankruptcy.
Federal agents then raided the Effingham plant in the industrial park, but they would not confirm a raid had even taken place at the time or that an investigation was underway."
DA Fishman's great post here sets the table for Bark River
The 2000 bank fraud case against Michael Stewart (founder of Black Jack Knives) ended in a guilty plea, though it did not stop his career in the knife industry. Stewart eventually moved to Michigan’s Upper Peninsula and founded Bark River Knives in 2001, which remains a prominent company today. ()
Follow-up on the 2000 Case:
• The Outcome: Stewart eventually pleaded guilty to one count of bank fraud related to the Murphy-Wall State Bank in Pinckneyville, Illinois. He was sentenced to a term of imprisonment (reports vary, but typically cited as around 18 months) and ordered to pay restitution.
• The Defense: During the proceedings, Stewart's defense often emphasized the "rolling" nature of the company’s financial struggles, characterizing the fraud as a desperate attempt to keep the business afloat and pay employees rather than a scheme for personal enrichment.
Life After the Case:
Despite the legal turmoil surrounding the collapse of Black Jack Knives in Illinois, Stewart remained a highly influential figure in the cutlery world.
• Marbles Knives (1990s–2001): Between the fall of Black Jack and the start of his next venture, Stewart worked with Marbles Knives in Michigan, helping to revitalize their production line.
• Bark River Knives (2001–Present): After serving his time and moving to Gladstone/Escanaba, Michigan, Stewart founded Bark River Knives. The company is famous for its "convex grind" blades and has a very dedicated following.
• Current Reputation: In the knife community, Stewart is a polarizing figure. He is widely respected for his design talent and for pioneering production-grade convex edges, but he is frequently discussed on forums (like BladeForums) regarding his past legal issues and business disputes with various vendors.
The current situation with Bark River Knives (BRK) has escalated significantly, following a pattern eerily similar to the Black Jack Knives collapse in the 90s.
The 2026 Shut Down:
Current reports from employees and industry observers indicate that Bark River Knives effectively ceased operations as of Friday, March 20, 2026.
• Employee Impact: Multiple reports from internal staff on social media and forums claim that the closure was sudden, with no prior notice given to the workforce. There are serious allegations that final paychecks have not been issued, leaving several dozen employees in the Gladstone/Escanaba area stranded.
• Supplier & Customer Issues: Vendors have noted that BRK had been liquidating stock through massive "clearance sales" and "waffles" for months, which many now see as a last-ditch effort to raise cash. Customers who placed deposits on long-delayed pre-orders (some dating back to 2021) are now reporting difficulties getting refunds.
