Rubashkin Customer Denies Tax Scheme

Rubashkin attorneys try to discredit witnesses.

Rubashkin customer denies tax scheme
BY GRANT SCHULTE • Des Moines Register

Sioux Falls, S.D. - A lawyer for former eastern Iowa meat plant executive Sholom Rubashkin suggested in court Monday that one of Rubashkin's largest customers shoveled money into the slaughterhouse to avoid taxes.

Michael Engelman, owner of the Doheny Kosher Meat Market in Los Angeles, denied any wrongdoing. But he acknowledged that he had offered "advance payments" for meat during his 20-year relationship with Agriprocessors Inc. in Postville.

The questions by defense attorney F. Montgomery Brown were an attempt to discredit Engelman as a witness in the government's financial fraud case against Rubashkin. Engelman was one of six former customers of Agriprocessors, now Agri Star, who testified against Rubashkin on Monday.

Engelman told jurors that the most he ever owed the plant for meat at one time was $300,000 to $400,000. Prosecutors contend that Rubashkin falsified sales records to show that Doheny owed more than $1 million, in an attempt to defraud his plant's lender.

Brown later asked Engelman about the money sent to Agriprocessors.

"I understand what's going on here," Brown said, and accused Engelman of putting money in Agriprocessors "to avoid taxes."

"I filed my taxes every year," Engelman said.

Rubashkin, 49, faces 91 federal charges including mail, wire and bank fraud, money laundering and ignoring an order to pay livestock providers on time. He has pleaded not guilty.

Whether customers actually bought meat is a core issue of the federal bank fraud charges. Prosecutors allege that Rubashkin ordered an sales employee to draft invoices for transactions that never took place, which he then used to obtain cash advances from the plant's lender. Defense lawyers say the sales records were legitimate.

Brown's questioning took an unusual turn when a man in the public gallery started making a "timeout" gesture to Engelman.

Engelman asked for a break and left the room with the man, later identified as his accountant and lawyer, Yosef Y. Manela.

U.S. District Judge Linda Reade later asked Manela not to signal to his client while he testified. Minutes later, Manela mouthed the word "no" to his client and nodded while Brown continued his questions.

Doug Berkhouse, a controller for Colorado Meat Packers Inc., told jurors that his employer "absolutely did not order" 50 shipments of beef, despite sales records at Agriprocessors that Rubashkin allegedly used.

Two kosher meat sellers who regularly bought from Agriprocessors testified that they were unaware that the plant allegedly attached their business names to made-up debts.

One seller, Aaron Tzivin, owner of Crown Heights House of Glatt in Brooklyn, N.Y, told jurors that he still has a good relationship with the plant's former owners, the Rubashkin family.

Tzivin, who is married to Rubashkin's first cousin, testified that Sholom Rubashkin allowed him to extend his credit line with the company. In exchange, Tzivin said, he loaned money to the plant when asked.

Comments

[AGRI-vated Angel]

[A lawyer for . . . Sholom Rubashkin suggested in court Monday that one of Rubashkin's largest customers shoveled money into the slaughterhouse to avoid taxes.]

The lawyer is speaking on behalf of SMR, is he not? Therefore, isn't SMR, in effect 'telling on' another Jew?

After all ~

[it is forbidden under Jewish law for Rubashkin to share information about other Jews who may have committed crimes. They will further claim that this law is severe, its violation is punishable by death (which will probably be explained as God "shortening the life" of a moser rather than Jews shooting a moser in the head), and that no Orthodox Jew can break it.]

[FirstGenerationBavarianAmerican]

That is what goes on at trials. The Los Angeles merchant may have been merely using a perfectly legal loophole in the tax code. The defense attorney generally tries to smear any prosecution witness. In this case, the insinuation is made that the witness is a tax cheat.

[state of disgust]

Interesting approach by the defense since the IRS has yet to be heard from with regard to the Agri scandal. The IRS was one of the participants in the May 12th raid. This could be part of the defense effort to divert attention from Agri owners tax shenanigans to the liabilities of its customers and send the IRS off on a wild goose chase

[harold]

Federal Agents Raid Goat Meat Plant

Kinsman, IL - Federal agents conducted a raid Sunday afternoon at a goat meat processing plant near Morris, Illinois. The secretive operation was led by the Chicago FBI office, the Feds are being very tight-lipped on what they found and why they were even there.
...
When asked if the raid had something to do with undocumented aliens, the person wouldn't say. A neighbor suggested that undocumented immigrants live in a trailer behind the facility and work there.

Immigration and Customs Enforcement officials said the agency assisted in the raid, but had no further comment. According to sources, many of the FBI and ICE agents were armed
...
"Way too much overkill for immigration," Cavaness said.

Neighbors who saw the raid on Sunday told CBS 2 it was a huge operation, involving more than 100 agents, police officers and even what one believed to be National Guard troops.

Sources say during the raid, the driveway was filled with more than 50 government vehicles. There was a helicopter flying overhead and a command center set up. On top of it were government sharpshooters with rifles at the ready.
...

http://cbs2chicago.com/local/Chicago.FBI.First.2.1256226.html

[WoolSIlkCotton]

http://news.yahoo.com/s/ap/20091020/ap_on_go_ca_st_pe/us_espionage_charged

[AGRI-vated Angel]

BTW/FYI/LOL ~

There is a 'Rekow for Mayor' sign posted on the front lawn of the Gourarie residence.

? $ ? $ ? $ ?

[Put Postville First]

The Gourarie's are not allowed to support a mayoral canidate?
Maybe citizens should ask the city clerk and staff how the past several months have been with Rekow as mayor.
It appears as though council meetings have been shorter and more organized.

[AGRI-vated Angel]

Under the circumstances, Leigh's connection to the Rubashkin name has surfaced a number of times. It would, naturally, be questionable, to say the least. I am quite willing to post references, if you would like me to. They can be found on the internet. Being responsible & informed is how citizens, with a true interest in change for a better future, are attempting to 'put Postville first'.

[state of disgust]

I'm sure Leigh Rekow will withhold support for any Agri-Star proposal for state funds until Mr. Friedman has held several general meetings with the townspeople who can then stand behind such a use of state funds ... and if you believe that, I have a bridge across the Mississippi I'd like to sell you.

[preplexed]

can someone explain me why he needed the picture of the Rebbe in court,