Raid and arrests
Main article:
Postville Raid
On May 12, 2008, the
FBI and
Department of Homeland Security agents raided the plant and arrested 389 workers who had fraudulent identity documentation. At that time, it was the largest raid into a workplace in the United States.
[7]
On October 30, 2008, one day after the Iowa labor commissioner fined Agriprocessors $10 million for wage violations, Rubashkin was arrested on federal conspiracy charges of harboring illegal immigrants and aiding and abetting aggravated
identity theft. Federal officials claimed that Rubashkin intentionally helped illegal workers obtain false documentation.
[15] After making an initial court appearance, he was released the same day on $1 million appearance bond after agreeing to wear an
ankle monitor that tracks his movement, to limit his travel to northern Iowa, and to surrender his and his wife's passports.
[16]
Rubashkin was arrested again on November 13, 2008, at his Postville home on federal charges of
bank fraud. The charges claimed that under his direction, millions of dollars that were supposed to be deposited in an account as collateral for a loan were fraudulently diverted to another account, and were used to fraudulently increase the value of Agriprocessors accounts receivable. After the money was diverted, Rubashkin allegedly ordered the records of these transactions removed from company computers. The charges carried up to 30-year prison terms.
[17]
Rubashkin was denied release on bail on November 20, 2008 following Magistrate Judge Jon Scoles determination that he posed a flight risk. Scoles took into consideration that searching Rubashkin's house, federal agents had found not only a bag with $20,000 in cash, several silver coins and passports, but also
Israel's “
Law of Return,” which grants automatic citizenship to every Jew and members of his family upon immigration.
[18] [19] The successful use of an argument based on Israel's Law of Return has caused concern among Jewish communities who fear that such claims could be used to deny bail to Jews in general.
[20]
The ruling was reversed by District Court Judge
Linda Reade on January 27, 2009. Rubashkin was released on $500,000 bond and ordered to surrender his birth certificate, his and his family's passports and agree to wear an electronic monitoring bracelet. He was not allowed to leave Allamakee County, nor was he allowed on any of Agriprocessors’ property and was barred from having contact with potential witnesses.
[21]
Trials
Federal trials
Rubashkin was convicted in November 2009 on 86 charges of financial fraud, including bank fraud, mail and wire fraud and money laundering. Prosecutors had claimed the company intentionally defrauded St. Louis based First Bank on a revolving $35 million loan by faking invoices from meat dealers, inflating the value of the company.
[22]
On November 23, 2009, Rubashkin's second trial on 72 immigration charges was canceled following the government's request to
dismiss without prejudice. In its motion to dismiss, the U.S. Attorneys Office said any conviction on the immigration charges would have no impact upon his sentence, writing, "dismissal will avoid an extended and expensive trial, conserve limited resources, and lessen the inconvenience to witnesses."
[23] Federal Judge
Linda R. Reade dismissed the immigration charges
without prejudice.
On March 3, 2010, Judge Reade denied Rubashkin's motion for dismissal of the financial corruption charges and a request for a new trial.
[24]
Rubashkin's sentencing hearing took place on April 28–29 in Cedar Rapids, Iowa. Prosecutors asked Judge Reade to impose a life sentence. After that request came under fire from former Justice Department officials, including six former Attorneys General, one former solicitor general and more than a dozen former United States attorneys,
[25] Assistant U.S. Attorney Pete Deegan said in court that the government would seek 25 years, while the defense asked for no more than six years.
[26]
On June 22, 2010, Judge Reade handed down a sentence of 27 years, two years more than prosecutors had requested.
[27] According to a 52-page memorandum which she released the day before sentencing, the judge imposed a 324-month prison term followed by 5 years of supervised release, and ordered Rubashkin to pay $18.5 million to First Bank Business Capital, the plant’s largest lender; $8.3 million to MB Financial Bank, another lender; and $3,800 to Waverly Sales, Inc., which received late payments from the plant for cattle.
[28]
His lawyers requested for him to be sent to
Federal Correctional Institution, Otisville due to the services the prison provides to religious Jewish inmates; Reade placed the request and the BOP granted it. His lawyers stated that eventually he wished to be sent to a lower security prison.
[29]
State child labor trial
Separate from the federal trials, Rubashkin went on trial on the child labor charges in state court in Waterloo, Iowa starting May 4, 2010.
[30] Prior to the trial, charges against Agriprocessors corporate officer Aaron Rubashkin and plant human resources employee Laura Althouse were dismissed. Additionally, the number of charges in the indictment was amended to 83 from 9,311.
[31] Sholom Rubashkin was
acquitted of all charges on June 7, 2010.
[32] However, Agriprocessors, as a corporation, which had already been purchased by Heshy Friedman, entered a guilty plea to the 83 child labor charges and the plant′s human resources manager pleaded to state child labor charges under an agreement with the state.
In February 2016 the child labor case against Mr. Rubashkin was
expunged.
[33]
Unsuccessful motion for new trial
WTF! Did he hire illegals? That there is some great Douche slam on supporters.
) ****** packers.
