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November 14, 2008

BREAKING! Rabbi Sholom M. Rubashkin Arrested On $35 Million Bank Fraud

Details:

Rubashkin Arrrest Bank Fraud 1

Rubashkin Bank Fraud 2

Comments

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At what point do we stop referring to him as "Rabbi"?

do you think sholom and moshe rubashkin will be roommates together in prison?

To calculate the fine, what was the actual loss that is doubled?

Don Rubashkin...much like Don Corleone.

Why would ICE agents be involved in an arrest relating to bank fraud?

Where did the money go?

Will the OU pull its certification now?

It doesn't appear from this press release that the money "went" anywhere. It was probably used in the business, unless the indictment alleges otherwise. AgriProcessors was apparently able to borrow based on a formula tied to its accounts receivable. Any payments made to Agri by a customer to satisfy the A/R were then sent to a separate account that served as collateral for the loan. Suppose a customer owed Agri $100. When that was paid, the A/R would go down to $0, meaning nothing could be borrowed against it. By holding up the posting of the payment to the collateral account, Agri was then able to increase the amount of time during which it could borrow against the A/R, which was probably a violation of the covenants of the loan agreement. If, during that time, the A/R increased to $200, that would inflate the amount Agri could borrow, and reduce the collateral available to support the loans that were made.

At least that's what I got based on the press release.

I see the affidavit is now posted. When I have a chance (hopefully before Shabbat) I will take a closer look and see more of the details. If anyone else gets a chance and can understand it, please let us know what the scheme was all about.

Anon,

The US Marshall's Service is a different agency than ICE.

Nu, vas tut zach, a zai geyt es. Mi daf shlogan di Rubashkins mit kaporot.

Are these people part of the
Chabad Lubavitch?
Thank you for the info

This whole episode proves how a leaderless community can collapse.
The lubavitcher Rebbe zt'l was the sole captain of the ship of exile.
Since his passing, however, there arose thousands of captains all over the Diaspra, each doing his own thing.
Two major actions stand out; This "agri" episode, and worse still, the offensive action of Rabbi Yehudah Teichtal, the shaliach in Berlin.
He "excavated" 19 tons of Jerusalem stone, sent it to Berlin, and erected a 100sq. meter replica of the Holy Kotel.
The Rebbe would not have let either of the above to take place.

++Are these people part of the
Chabad Lubavitch?++

Yes

--The US Marshall's Service is a different agency than ICE.--

He was arrested by officers of both ICE and the US Marshall's service. My question is why ICE was involved in a bank fraud arrest?

Be careful of the untruths you say or believe about this family. I have had the pleasure of spending quality time with the Rubashkin family. They are charitable, holy, warm and loving to everyone. Over the years they have been an inspiration for me and my family. Instead of throwing stones at this wonderful family, you should pray to G-D to help them in their time of need.

I don't doubt that the Rubashkin Crime Family have been warm and philanthropic ... to some. However, the Mafia are also generous to their church and their community.

Moses Rubashkin has already served prison time and Shalom is about to.

This "wonderful" family has brought disgrace to the Jewish community, as well as hardship to those who observe kashrut.

PLEASE watch the Lashon Harah!
The Jewish People have enough enemies without us fighting and hating each other.
Even the US Attorney's Office Press Relaease says, "...a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty." Don't be the judge, the job is already taken. Yes we are all intelligent enough to observe trajic behavior. But again, Lashon Harah and aliitle humility will go a long way.

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