Rubashkin Cashed In Own Life Insurance Policy To Keep Plant Running, Government Witness Says
Rubashkin attorney hammers witness in attempt to discredit testimony.
Witness: Rubashkin cashed insurance policy to get cash for plant
By GRANT SCHULTE • Des Moines RegisterSioux Falls, S.D. – Lawyers for Sholom Rubashkin today hammered a government witness who testified that the former Postville meat-plant executive was at the center of an alleged massive bank fraud scheme.
Defense attorneys emphasized the plea deal that Yomtov “Toby” Bensassson struck with federal prosecutors in exchange for his cooperation.
Bensasson, the former controller at Agriprocessors Inc., pleaded guilty in August to one fraud conspiracy charge, although he admitted earlier this week that he falsified hundreds of company records to defraud a bank.
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The admission was part of Bensasson’s testimony against Rubashkin, a former vice president at the Agriprocessors, Inc. kosher slaughterhouse in northeast Iowa. Rubashkin has pleaded not guilty to 91 financial fraud charges including mail, wire and bank fraud, money laundering and failing to pay livestock providers in the time required by law.
Assistant U.S. Attorney Peter Deegan Jr. finished questioning Bensasson this morning about his efforts to falsify sales invoices at the plant. Defense lawyer Guy Cook stood and walked to the podium.
“Good morning,” he said. “Sir, do you want to go to prison?”
“Nobody wants to go to prison,” Bensasson said.
“You nevertheless have convicted yourself” of the conspiracy charge, Cook said.
“Yes.”
“And you face a fine of as much as a quarter-million dollars, and restitution?”
“Yes.”
“You pleaded guilty, convicting yourself?”
“Yes, sir.”
Bensasson testified that Agriprocessors survived on borrowed money. At one point, he said, Rubashkin cashed in his own life insurance policy to keep the plant operational.
The trial continues this afternoon, but will not take place on Friday. Testimony resumes Monday.
How much was the life insurance policy worth?
Posted by: state of disgust | October 22, 2009 at 02:44 PM
ok the GOV top witnesses have not said anything amazing so far and his defense has been doing a pretty good job trashing them so all of u who want to see S.M Rubashkin sit for the rest of his life behind bars just gotta chill out because its IY"H not going to happen
Posted by: joe | October 22, 2009 at 03:09 PM
What's illegal about cashing in a life-insurance policy to keep your business afloat?
Posted by: Rob Wisler | October 22, 2009 at 03:16 PM
Did his father cash in his policy, and his brothers and sisters?
Did his family leave him to hang promising him 72 virgins while they start new businesses?
Posted by: YABED | October 22, 2009 at 03:42 PM
But Joe, even team Rubashkin admit that SMR is an incompetent at running a business. That is not something to gloat about, and that is best case scenario for him. He ruined people's lives, and even if it was merely because of incompetence, it should be enough to wipe that smugness off his face. Yet, he doesn't seem to feel bad at all.
Posted by: itchiemayer | October 22, 2009 at 03:59 PM
what ruining did he do, any illegals that worked for him know they where taking a risk, and the regular people of postvile, they where living in some nothing town before agri, so when the company failed they suffered just like any town suffers when the biggest employer goes down hill, trust me he feels bad but at this point he has to worry about winning his trial, and keeping a positive look on his face is necessary, I hope he wins big time IY"H, and shmarya can go back to talking about a subject that I agree with him [child molesters}.
Posted by: joe | October 22, 2009 at 04:10 PM
1) There is nothing wrong with cashing in your life insurance - whatever the reason. It is just sign of desperation.
2) There were a great many people who put their faith in Rubashkin whose lives were ruined. Wait for it. They will testify when it comes time for sentencing. I've met quite a few.
3) More than that there were many workers who were injured on the job because he did not provide basic training in the use of his equipment.
4) Postville was great small town BEFORE Rubashkin, and lY"H, will be again.
5) SMR has about as much rachmonos for Postville as his father had for the people he squeezed and then put out of business.
6) As for the case itself, so far the government has done a good job of establishing premeditated bank fraud. The fact that some people think SMR is a nice guy, is irrelevant.
Posted by: state of disgust | October 22, 2009 at 04:37 PM
"""ok the GOV top witnesses have not said anything amazing so far """
I was on a jury and the defendant wanted to hear the recording that the cop made when he was pulled over.
It was played and the defendant was shaking his head no as to indicate there was nothing on the tape.
WE the jury heard construction vehicles, tractors, the backup beep etc [speeding in a construction zone with workers present]
one minute discussion then GUILTY!!!
Remember these are plain thinking folks too dumb to be fooled
Posted by: Isa | October 22, 2009 at 05:15 PM
Neutral Post
How many Life Insurance's get lost in time?
Fire, hurricane, flood whatever. Do you think the Life Insurance company will come looking for descendants 100 years after the policy was issued? Hell NO!
Beware of the scam of becoming a Life Insurance Agent, after you strong arm all your relatives and friends then what?
I have seen more than a few 'agents' fall on their face when they run out of friends.
Of course some one like SMR that has no corporate job that will supply a free life insurance needs something, For the rest of you that work for a company stay away from those things OR get term Life
Posted by: Isa | October 22, 2009 at 05:31 PM
I just would like to know where all the money went.
Posted by: nachos | October 22, 2009 at 06:21 PM
That life insurance policy must be worth quite a bit then I guess.
Posted by: Life Insurance Administration | December 07, 2009 at 10:46 AM