Former CEO of Iowa kosher slaughterhouse arrested (for the second time this month)

[Robbien]

Source: AP

CEDAR RAPIDS, Iowa — A former executive of a kosher slaughterhouse that was the site of one of the nation's largest immigration raids was arrested Friday on a bank fraud charge and ordered jailed until at least next week.

. . .

This is the second time in less than a month that Sholom Rubashkin has been arrested on federal charges related to his operation of the plant, site of a May 12 immigration raid in which 389 people were arrested.

In the months following the raid, the company has faced state and federal allegations that it violated child labor laws, wage regulations and safety rules. The arrest Friday was related to the depositing of checks from customers and the alleged diversion of money.

. . .

Records show that Rubashkin instead diverted millions of dollars in customer payments into an Agriprocessors account at a different bank. . . .That resulted in the inflation of the value of accounts receivable in Agriprocessors' books, allowing the company to borrow additional funds from the bank without proper collateral.

Rubashkin also is accused of telling an Agriprocessors employee to erase evidence of the scheme from company computers. The instructions allegedly began the day after Rubashkin was released after an Oct. 30 hearing in federal court, where he is facing charges of harboring illegal immigrants, document fraud and identity theft.

Read more: http://www.ajc.com/news/content/shared-gen/ap/National/Slaughterhouse_Manager_Arrest.html

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It is hard to keep track of this big GOP donor story. This guy, Sholom is using immigration slave labor in his Iowa kosher slaughterhouse while at the same time defrauding banks out of hundred of millions. His brother, Moshe, over in Pennsylvania is also defrauding banks over there and while at the same time burning down his textile mill for profit and getting caught with hazardous waste.

Moshe is soon off to prison to serve his sixteen months sentence. Sholom awaits his trial(s) and faces possibly twenty years.

[jwirr]

1. Finally someone is going after the owners.

[Hawkeye-X]

2. Once again, the Rubashkin family are scums.

I continue my boycott of their crap kosher food.

[JimboBillyBubbaBob]

3. Hey...........

Something doesn't sound kosher here!

[UpInArms]

4. Problems arise in Agriprocessors' bankruptcy filing

http://www.tmcnet.com/usubmit/2008/11/08/3771159.htm

(Gazette, The (Cedar Rapids, IA) Via Acquire Media NewsEdge) Nov. 8--Agriprocessors' bankruptcy case is off to a rocky start.

The company's main lender filed a motion Thursday saying the bankruptcy filing late Tuesday was filed in an improper venue -- New York -- and should be moved to Iowa.

First Bank Business Capital of St. Louis is owed about $33 million by the processor of kosher meats, which has been in deep legal trouble for using illegal immigrant workers and failing to comply with wage and hour laws.

Agriprocessors' principal place of business is its meat processing plant in Postville. The company filed for emergency bankruptcy protection in U.S. Bankruptcy Court for the Eastern District of New York, where the company's owner Aaron Rubashkin, lives, and the company has a distribution center.

First Bank Business Capital says in its motion that just three of the meatpacker's 20 largest unsecured creditors are located in New York, and the three largest secured creditors are not located in New York.

The bank also points out that one of the officers of Agriprocessors -- Sholom Rubashkin -- was recently arrested on federal immigration and identity theft charges, and is not allowed to leave the jurisdiction of the U.S. District Court for the Northern District of Iowa without court permission.

...more...

crooks