Bank Sues Rubashkin Family Over Defaulted Loan
Bank suing Rubashkins for unpaid loan
By Trish Mehaffey • The GazetteRelated Story: Agriprocessors charges to be tried separately, judge rules
CEDAR RAPIDS — Former Agriprocessors Vice-President Sholom Rubashkin, his father and brother are being sued by Omni National Bank for a $300,000 unpaid loan they made in 2007.
The lawsuit, filed Thursday in U.S. District Court, claims Sholom, Tzvi and Aaron Rubashkin made the loan in 2007 on behalf of Nevel Properties and it was to be paid off in monthly installments. Sholom, Tzvi and Aaron Rubashkin each pledged their assets as security for the debt of Nevel Properties, according to the lawsuit.
According to the loan agreement, upon default, Omni can declare the principal sum with the accrued interest is due and payable at once, according to the suit. Omni exercised this option on Nov. 26, 2008 and claimed $332,173 was due.
The debt wasn’t pay and the Omni is asking for the Rubashkins to pay $332,173 with interest from and after Nov. 10, 2008.
Agriprocessors filed for bankruptcy in November, almost six months after federal immigration agents raided the Postville meatpacking plant and arrested 389 workers. A bankruptcy trustee this week proposed a deal to sell the company for $8.5 million.
SHF, a new company formed by Montreal businessman Heshey Friedman and two associates, has agreed to pay the $8.5 million to two of Agriprocessors’ largest secured creditors — First Bank Business Capital of St. Louis and the credit arm of Metropolitan Life Insurance.
The sale price is so much less than the company owes its creditors that the more than 400 unsecured creditors may land up empty-handed. Creditors with a security interest in plant equipment will have to negotiate the best deal they can with buyer SHF Industries Inc.
When in prison [The Fed SUPER MAX Facility south of Denver would be perfect], SMR, AR and others should consider writing a book entitled, "How To Be A Fake Pious Jew And A Criminal At The Same Time".
Posted by: sage | June 26, 2009 at 06:55 AM
I thought loans you don't pay back are called grants! If they're not going to pay their bills, then why don't they use some of that moldy money to hire a grant writer and get out of paying debts legally? Of course getting money with grants wouldn't have the screw satisfaction factor that taking money from unsecured creditors and banks has.
BTW- just where IS all this money going that they have begged, borrowed, stolen, "earned" ??????
Posted by: Hometown Postville | June 26, 2009 at 08:33 AM
I hope the clean-up effort to 'spruce up' Postville does not include actually entering these infested homes. Imagine the impact the parents of the children who are coming would have . . . if those students returned home complete with cockroaches carried along in their clothing.
Posted by: Curious Postville Native | June 26, 2009 at 08:42 AM
+++ BTW- just where IS all this money going that they have begged, borrowed, stolen, "earned" ??????
Posted by: Hometown Postville | June 26, 2009 at 08:33 AM +++
IMHO, the Millions the RCF has stolen, etc., are most likely, sitting in offshore or foreign bank accounts.
Posted by: sage | June 26, 2009 at 08:49 AM
I suspect the RCF gave a lot of their money away to Chabad. Why do you think they've gone out on such a limb to defend these perps? The RCF were cash cows.
Of course I'm sure they put a tidy sum away for themselves.
Posted by: state of disgust | June 26, 2009 at 10:40 AM
A light unto the nations. HA!
Posted by: BaltimoreYid | June 26, 2009 at 12:35 PM
Tell me if I'm way off base but could some of that money be funneling into the Middle East to help the other side? I've had a gut feeling about that for a long time.
Posted by: Hometown Postville | June 27, 2009 at 11:23 AM