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July 07, 2008

Another Peg In Rubashkin's RICO Coffin

Many of you know that Agriprocessors and the Rubashkin family were caught up in the Allou Healthcare fraud and that Agriprocessors had to pay $1.4 million dollar judgement late last year for its role in laundering Allou assets.

Now the Des Moines Register has dug up Sholom M. Rubashkin's deposition in the case, and what the Register found is…

… shocking:

…[A]t one point, Agriprocessors Vice President Sholom Rubashkin gave a deposition in the proceedings. Court records indicate that Rubashkin said his Postville real estate company, Nevel Properties, gave Allou nothing in return for tens of thousands of dollars in cash - an admission that apparently caught his attorney off guard:

"What did Nevel do for Allou?" the trustee asked.

"Nothing," Rubashkin replied.

"Perfect," said Rubashkin's attorney, Bernard Feldman.

"Do you know of any reason why Allou would be paying Nevel?" the trustee asked.

"I said before, I need to understand before I can answer you," Rubashkin replied. "I will get back to you on that."

Rubashkin later testified that Allou's payments to Agriprocessors were made in exchange for surplus meat products. But no one from Allou or Agriprocessors offered any explanation of why a pharmaceutical company would buy $3 million worth of kosher meat.

Rubashkin testified that the sole Agriprocessors executive who handled the Allou account died at his desk in 2003, taking with him all firsthand knowledge of Allou's purchases.…

Agriprocessors CEO and Vice President Sholom M. Rubashkin didn't know why a company had paid Nevel – a company owned by Rubashkin and his family – what turned out to be $3 million.

And later, when Rubashkin does "know," the answer is farcical – Allou paid Nevel, Rubashkin's real estate company, for $3.2 million in surplus meat.

Why would meat payments go through a real estate company? Why would Allou – a pharmaceutical and healthcare company – buy $3.2 million in meat? Allou did not have the facilities to store the meat or distribute it. It could show no expenses for storage or distribution. It couldn't even explain where the "meat" went.

Of course, we all know there was no meat. Allou paid Rubashkin for just what Sholom M. Rubashkin first said under oath – "nothing." What probably happened is Rubashkin kicked back most of the money to the Jacobowitz family, owners of Allou.

In other words, Rubashkin makes, say, 50% on the deal – $1.6 million dollars. The Jacobowitz family gets $1.6 million dollars out of their failing company and into their overseas bank accounts. Allou's creditors are left holding the bag.

But Jacobowitz got caught and Rubashkin had to pay a $1.4 million dollar judgement.

Jacobowitz is a Satmar hasid.

Here's the entire Register report, which has a slightly different version of the crime:

Postville plant paid to settle fraud case
BY CLARK KAUFFMAN

Iowa's Agriprocessors meatpacking plant agreed to pay $1.4 million last year to settle allegations that it participated in a fraudulent scheme to hide another company's assets.

The allegations revolved around Allou Distributors, a pharmaceutical company controlled by Herman Jacobowitz of New York. Allou filed for bankruptcy in 2003, shortly after its Brooklyn warehouse was torched.

The bankruptcy trustee in the Allou case accused the Jacobowitz family of orchestrating a "long-running and massive fraudulent scheme" to loot the company of millions of dollars by artificially inflating the company's assets. By exaggerating the company's value, the trustee alleged, the family was able to gain additional leverage to borrow money from lenders and convert company assets for their own personal use.

The trustee alleged that as part of the scheme, Allou made $3.2 million worth of payments to Agriprocessors and its affiliates between 1997 and 2001. The trustee alleged the Postville meat-packing plant provided Allou with no products or services in exchange for the money.

No Agriprocessors executives were criminally charged in the matter, and company officials have declined to answer questions about the case.

But at one point, Agriprocessors Vice President Sholom Rubashkin gave a deposition in the proceedings. Court records indicate that Rubashkin said his Postville real estate company, Nevel Properties, gave Allou nothing in return for tens of thousands of dollars in cash - an admission that apparently caught his attorney off guard:

"What did Nevel do for Allou?" the trustee asked.

"Nothing," Rubashkin replied.

"Perfect," said Rubashkin's attorney, Bernard Feldman.

"Do you know of any reason why Allou would be paying Nevel?" the trustee asked.

"I said before, I need to understand before I can answer you," Rubashkin replied. "I will get back to you on that."

Rubashkin later testified that Allou's payments to Agriprocessors were made in exchange for surplus meat products. But no one from Allou or Agriprocessors offered any explanation of why a pharmaceutical company would buy $3 million worth of kosher meat.

Rubashkin testified that the sole Agriprocessors executive who handled the Allou account died at his desk in 2003, taking with him all firsthand knowledge of Allou's purchases.

Eventually, Jacobowitz was accused of fraud and attempted bribery for offering $100,000 to a fire marshal, asking him to declare the warehouse fire an accident instead of the result of arson. He was later sentenced to 15 years in prison, ordered to forfeit $130 million, and to make $177 million in restitution to Allou's lenders and investors. His brothers Aaron and Jacob Jacobowitz were sentenced to 10 years in prison.

Although the Rubashkins were not charged with any criminal wrongdoing, they agreed last year to settle the claims of the trustee by paying $1.4 million - less than half of what was allegedly received from Allou.

The money was used by the trustee to help satisfy the claims of Allou's creditors.

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Is it because he was not charged with any criminal wrongdoing that he is only ordered to pay 1.4 million dollars?

It was probably cheaper and less time consuming for the prosecuter's office to work out a settlement, rather then go to court to prove the money laundering charge.

KoHakavod to FM for breaking this story months ago!

Many of you know that Agriprocessors and the Rubashkin family were caught up in the Allou Healthcare fraud and that Agriprocessors had to pay $1.4 million dollar judgement late last year for its role in laundering Allou assets.


Hey, this must be another one of those "unproven allegation" against Agri!

What do you want, Jacobowitz and Rubashkin are both very charitable people. They were helping each other out. First Rubashkin needed $3M and then Jacobowitz needed $1.4M. One hand washes the other, netillas yadayim.

How much time does Engelmayer need?

http://ap.google.com/article/ALeqM5jO9WZoMijd4RZonKDKU4OabjtjkgD91N8VOO0

By AMY LORENTZEN

Agriprocessors spokesman Juda S. Engelmayer said the company and its attorneys were reviewing the paperwork from the federal action on Thursday and couldn't comment on the matter.

A person who worked in the human resource department told authorities that Guerrero-Espinoza would bring them resident alien cards for new job applicants who were to be hired in the beef kill department, one of the areas he supervised, the complaint said.

A week before the raid, Guerrero-Espinoza instructed a group of workers to get new IDs and Social Security numbers in order to keep working at the company, another source at the plant told authorities.

A number of sources said a couple of weeks before the raid that De La Rosa-Loera told them they needed new documents to work at the plant, the complaint against him said. When they got the new documents, they reported that De La Rosa-Loera handed them back but allowed them to continue working at the plant.

Detention hearings for both men were ordered for Monday in Cedar Rapids. Court documents did not list attorneys for the men, and officials with the U.S. Clerk of District Court's office did not know whether attorneys had been appointed.

Deja vu. When UOJ wrote about scandals involving Young Israel lawyers Steve Mostofsky & Martin Samson, Blogger's parent company Google was threatened with legal action if they did not remove the entry.

Doing this right before a holiday is a stunt used by Kolko's lawyers.

http://www.thecuttingedgenews.com/index.php?article=618

Edge Exclusive

YouTube Pulls Pastor Hagee Videos After Church Copyright Lawyers Demand Removal

Sam Orez
July 7th 2008

YouTube.com, the popular website for uploading videos, has pulled numerous videos of Pastor John Hagee Ministries after the minister’s copyright attorneys requested their removal, The Cutting Edge News has learned. The attorneys asserted the videos constituted copyright infringement, and were otherwise deemed to be private property, ministry sources said. Lawyers quietly contacted YouTube during the days and hours before the July 4 holiday to attract as little attention as possible, it was learned.

This prompt YouTube action comes at a time when the giant Google enterprise is fighting Viacom’s one billion dollar lawsuit over alleged copyright infringement as a result of content uploaded by YouTube users. In February 2007, Viacom obtained a court order compelling YouTube to delete some 160,000 videos which apparently infringed on copyrights. Viacom owns network and cable programming, and digital images such as seen on MTV and Comedy Central are frequently chosen as digital content for YouTube uploaders. Earlier in July, a judge also ordered Google to deliver YouTube user data to Viacom. The court-ordered files encompass 12 terabytes of data. That sweeping order was stayed in an emergency protective order, but YouTube is doing all it can to demonstrate that it respects copyright.

Sources say that Hagee, probably motivated by the recent series of news attacks regarding past statements on the Hitler and the Holocaust, used the Viacom example to demand its own videos be respected.

In a statement to The Cutting Edge News on Independence Day, Hagee spokesperson Juda Engelmayer confirmed, "John Hagee Ministries, through its copyright attorneys, issued a request that YouTube remove any and all copyrighted materials belonging to John Hagee copyrights." He added, "The request was accepted."

Over the past few months several of Hagee’s comments, quotes, and sermons have been posted to various websites and have been used to stir controversy surrounding Hagee’s endorsement of Republican presidential candidate John McCain. Beginning with Hagee’s condemnations of Catholicism, which mired Hagee and McCain’s campaign in a media frenzy, the latest postings depicted an old sermon of Hagee's speaking of God’s hand in Hitler’s evil to bring Jews to Israel.

Hagee and McCain mutually severed ties when the videos and theological viewpoints became a campaign issue and a basis for media headlines.

According to information obtained by The Cutting Edge News, Hagee’s attorneys set forth criteria for videos to be removed by YouTube. These included: "1) Any and all pre-recorded material garnered from works owned and distributed by JHM or John Hagee Copyrights; 2) Any material depicting a JHM or John Hagee copyrighted service or performance of the service or sermon, and 3) Any material that is no longer free use material by having been effectively made into a derivative work using materials mentioned above."

Hagee is holding his annual conference for his organization, Christians United for Israel, later this month in Washington DC. This action to remove his YouTube content may be an effort to stem any more surprises prior to the event.

http://www.jpost.com/servlet/Satellite?cid=1214726217755&pagename=JPost%2FJPArticle%2FShowFull

Meanwhile, various American Jewish youth organizations joined the boycott of Agriprocessors meat, among them B'nai B'rith Youth, Habonim Dror, Ramah, the Union for Reform Judaism, and Young Judaea.

What a coincidence: the wife of the Agri controller runs the real estate company. How shocking.

Regarding:
""""Meanwhile, various American Jewish youth organizations joined the boycott of Agriprocessors meat,""""
Otherwise, one might find a finger or perhaps toe in the meat

Looks like Archie has a fixation on Englemeyer. what's with that?

{Otherwise, one might find a finger or perhaps toe in the meat}

That's the trief meat Agri sells to the goyim.

That's the trief meat Agri sells to the goyim.

But Carol Ann, isn't wonderful to serve your fellow man?

(Ask Rod Serling, or Jonathan Swift).

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