Rubashkins Accused Of Diverting Agriprocessors' Loan Collateral To Private Accounts

It seems the propensity for bank schemes is not Moshe Rubashkin's alone, as…

…the Gazette reports:

Lender forecloses on Agriprocessors
By Dave DeWitte

CEDAR RAPIDS - A major lender has foreclosed on Agriprocessors and its owners, asking that a receiver be appointed to take control of the embattled kosher meat supplier.

The action Thursday by First Bank Business Capital of St. Louis seeks to foreclose on $33.5 million in loans.

Agriprocessors was the nation's largest kosher beef processor until an immigration raid last summer resulted in the detention of much of its work force. It has since faced a stinging series of legal charges over issues ranging from use of child labor to violations of wage laws.

First Bank asks the company to be placed in the hands of a receiver, Atec Liquidation of St. Louis.

In support of the request, the bank says the borrowers "have repeatedly made misrepresentations to First Bank by providing inaccurate and misleading notices of borrowing and other documents that misstated the value of the collateral."

It said officers of Agriprocessors have admitted to diverting funds constituting First Bank's collateral to an account they maintained at Luana Savings Bank in Luana.

It says the bank notified the company, and owners Aaron Rubashkin and Sholom Rubashkin on Wednesday that the company is in default.

Agriprocessors spokesman Chaim Abrahams said Friday afternoon declined to comment on the foreclosure, saying the company's owners are still analyzing it.

The foreclosure calls into question the continued operation of Agriprocessors by the founding Rubashkin family. Owners Abraham Rubashkin and Sholom Rubashkin are individually named in the lawsuit as officers of the company who signed personal guarantees of some of the loans.

A hearing on the request for a receiver was scheduled this afternoon in U.S. District Court in Cedar Rapids.

[Hat Tip: state of the Jews.]

Comments

[someone]

"The foreclosure calls into question the continued operation of Agriprocessors by the founding Rubashkin family. Owners Abraham Rubashkin and Sholom Rubashkin are individually named in the lawsuit as officers of the company who signed personal guarantees of some of the loans."

let the plant run, we need the jobs!!!, just get the rubashkins the hell out. i hope a responsible party steps up to replace them.

[Secularjew]

Atec is run by a street smart tough person who will do his best to protect the bank's collateral, treat the employees fairly and try to package to a new investors.

[steve]

The Rubashkins are intent on bringing all of Postville down with them. They could have sold out months ago and avoided all of this. Pride and greed gets in the way of common sense.

[Yochanan Lavie]

The Rubashkins are intent on bringing all of Postville down with them. They could have sold out months ago and avoided all of this. Pride and greed gets in the way of common sense.

Reminds me of the blinded, impotent Shimshon pulling down the Gaza temple with himself inside it.

[A E ANDERSON]

A LIQUIDATOR'S SCHITAH?

Lemme get this straight.... all the schohatim, bodeqim and related kashruth functionaries -- heavily but not exclusively Habad Hasidim -- are going to remain and schecht for some goyische liquidating firm? Give me a f--king break!

Were this some "stam," farkackte eseq, be-shlaima! The drones on the labour force continue to come in and work. But when the enterprise is intimately connected with a religious vocation, and here one connected with a peculiar religious sect, the businesses isn't practicably transferable.

Any receivership will sink or swim depending on the cooperation of the schochetim, bodeqim, etc. If they elect to continue under a liquidator, fine. But if they -- or the rabbanim who tell them what to do -- say otherwise, they operation will go kaput, and the liquidator will be left with a schitah of trayfois and nevailois with no market to vend the same.

Apparently, the Cedar Rapids bank has no clue how essential the Rubashkins (love 'em or hate 'em) are to the very operation of the business. Even if they were to be successful at producing a product, like the non-kosher lines, the operation of the kosher and kosher glatt would be utterly beyond the competency of some bankruptcy trustee or turn-around artist.

I think the cause of Agriprocessor's current problems was the poorly thought out and ill-conceived attack on it by Chertoff's Homeland Security Blackshirts, apparently egged on and orchestrated by fanatical Labour union and animal rights activists.

Had some thought been given to the role and importance of the operation in the broader US market, and to the supply of kosher food generally, Chertoff's gung-ho goons might have proceeeded with a more thoughtful, careful and deliberate way to troubleshoot the alien documentation problem without causing massive microeconomic disruptions.

(This isn't the only area where Chertoff and his manical security freaks have acted against the interests of America and Americans. Many foreign tourists and tour operators now avoid the United States because of the way aliens are now hassled, fingerprinted, documented and detained when coming in to visit as bona fide tourists.)

A. E. ANDERSON
Miami, Fla.
aengleranderson@gmail.com

[Shmarya]

Lemme get this straight.... all the schohatim, bodeqim and related kashruth functionaries -- heavily but not exclusively Habad Hasidim -- are going to remain and schecht for some goyische liquidating firm? Give me a f--king break!

The shechting (kosher slaughter) will continue under the auspices of a kashrut organization, just as it until now took place under the auspices of kashrut agencies.

[Shmarya]

I should add the rest of what you write is pure BS.

[sheichen ha shichuna]

Shmarya,

You are cordially invited for a barbecue in Crown Heights. Just be sure to wear a large name tag with "FailedMessiah.com" in bold letters and I am sure you will be invited to numerous homes.