Bank Official: Agriprocessors Receipts Looked Real
Bank official: Agriprocessors receipts looked real
GRANT SCHULTE • Des Moines Register
Sioux Falls, S.D. – A bank official who inspected the books at Agriprocessors Inc. one week after a 2008 immigration raid testified Wednesday that the allegedly fake sales records that he was given appeared real.
Shane May, an examiner for First Bank Business Capital, told jurors that the May 2008 review of the eastern Iowa meat plant’s records found nothing wrong, aside from one minor error.
“Did you assume that the information provided to you was accurate?” asked Assistant U.S. Attorney C.J. Williams.
“Yes,” May said.
May’s testimony came during the second week of Sholom Rubashkin’s 91-count financial fraud trial in Sioux Falls, S.D. Rubashkin, a former vice president at Agriprocessors, Inc., has pleaded not guilty to charges of bank, mail and wire fraud, money laundering and failing to pay livestock providers in the time required by law.
Prosecutors contend that Rubashkin told a slaughterhouse sales employee to produce bogus company records in a scheme to defraud the St. Louis-based lender.
The allegedly fake sales records were shown to bank officials as proof that customers owed Agriprocessors Inc. millions of dollars for meat and other animal parts. The records, as a result, increased the amount of money the plant could borrow from a $35 million credit line.
Then came a federal immigration raid in May 2008 that gutted one-third of the plant’s work force, and eventually pushed Agriprocessors into bankruptcy. Rubashkin resigned, and the bankruptcy trustee who tried to collect unpaid debts from customers discovered that many of the reported sales may not have taken place.
Prosecutors also contend that Rubashkin diverted cash payments into an operating account, when the money was supposed to go to First Bank.
Defense lawyers argue that the allegedly fake sales records were for legitimate transactions that were not properly recorded.
Rubashkin also faces 71 federal immigration-related charges. That trial will begin one week after the financial fraud trial ends.
The trial was moved from Cedar Rapids to Sioux Falls because of pre-trial publicity.
May said the records he reviewed only extended up to March 2008. The records immediately before and after the raid had yet been finalized, he said.
I catagorically refute this. The official has given testimony that he knew the statements were false and acted upon them as he would had he not known and not received the night before a freezer full of hotdogs and steak. They are leading him away as we speak into custody. Shmarya, your reporting is weak.
Posted by: yidandahalf | October 21, 2009 at 02:46 PM
Did the bank official test any of the invoices? This is a simple process of calling to verify that the invoice was correct. Of course, if Agri was making its regular monthly payments against the debt there was no reason to suspect that the invoices were fakes. From all other indications, the company was financially solid ... then the roof caved in.
Posted by: state of disgust | October 21, 2009 at 03:45 PM
hay whats the reporting so far we get less then 3 pieces a day on it I thought you where looking forward to this for a long time I don't understand Minnesota isn't that long of a ride hay the chabadniks managed to make it there why cant u
Posted by: joe | October 21, 2009 at 03:58 PM
hey good point joe!
secondly, Shmarya started raising money at the end of september. the Chabadniks got a bus full of supporters with hardly a weeks notice!
:)
Posted by: krewz | October 21, 2009 at 04:34 PM
they got a full bus with less then 2 non yomtov days of advertising plus I don't know the situation in postville but I believe a good impression was made on the locals in Sioux Falls in fact the first media reports of the start of the trial where nice towards Sholom rubashkin ones for a change
Posted by: joe | October 21, 2009 at 05:05 PM
Please.
The Rubashkin defense fund paid for the bus, food and hotel and took primarily older bochrim who were on vacation until mid-week.
If you both want me there, make donations to support me.
If not, suck air.
Posted by: Shmarya | October 21, 2009 at 05:51 PM
I don't want u there, I am just shocked that all of your anti Rubashkin people couldn't cough up some cash, also your site is worth something in the 150k rage maybe start selling shares in it.
Posted by: joe | October 21, 2009 at 06:43 PM
Remember those posts about Bernard Feldman exactly 13 months ago, such as this one:
http://failedmessiah.typepad.com/failed_messiahcom/2008/09/agriprocessor-4.html
Then, see this recent comment by Feldman in the Argus Leader:
http://www.argusleader.com/article/20091021/UPDATES/91021042
Posted by: FirstGenerationBavarianAmerican | October 21, 2009 at 06:55 PM
Shmarya:
It is just as well that you are not there, at the very least your tires would get slashed. They would all blame you for the troubles that were visited upon their 'holy man'. Maybe you would even get your head bashed in.Yes the civilized would leave you alone but all it takes is for one crazy Chabadnik to be brought with.
Posted by: Isa | October 21, 2009 at 09:07 PM