Witness: Rubashkin Feared Feds Had Bugged Phones

All conversations had to be conducted "on the move."

Witness: Rubashkin routed profits into plant instead of bank
BY GRANT SCHULTE • Des Moines Register

Sioux Falls, S.D. — A former top officer at the financially ruined Agriprocessors Inc. described a culture of fraud at the plant and poor oversight by its lender today as he testified against his old boss.

Yomtov “Toby” Bensasson, the self-proclaimed “traffic cop” of the meat plant’s accounting department, said former Agriprocessors executive Sholom Rubashkin, who is on trial for financial fraud, oversaw an elaborate plot to route profits into his company instead of the bank where money was supposed to go.

The former slaughterhouse controller told federal jurors that field audits conducted by First Bank Business Capital — the plant’s lender — were not as detailed as reviews he would have done.

The statement came in response to a question by Rubashkin’s lawyer about whether the reviews were thorough.

“By my standard, no,” he said. “I wouldn’t have done them that way.”

Bensasson testified that Rubashkin, the former vice president, believed that federal agents had bugged the meat plant and his phones. All conversations at Agriprocessors had to take place “on the move,” he said.

The northeast Iowa slaughterhouse that dominated the nation’s kosher meat market for years relied heavily on borrowed cash from Rubashkin family members, business associates and the bank Rubashkin allegedly cheated, Bensasson said.

Agriprocessors Inc. in Postville was the site of a May 2008 immigration raid that led to the arrest of 389 illegal immigrant workers, charges against top executives, and a bankruptcy claim that handed the plant to new owners. A Canadian businessman has since bought the plant and re-named it Agri Star.

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. His trial is taking place in South Dakota because of intense media coverage in Iowa.

Rubashkin lawyer Guy Cook hammered Bensasson about the plea deal he struck with federal prosecutors in exchange for his cooperation. Bensasson pleaded guilty to one fraud conspiracy charge in August, although he admitted this week that he falsified company records to defraud First Bank.

“Good morning,” Cook said today. “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.”

Today marked the end of Rubashkin’s second week of trial in U.S. District Court. Testimony resumes Monday.

Bensasson testified at one point that Rubashkin cashed in his own life insurance policy to keep the plant operational.

Bensasson said he agreed with Cook’s description of Rubashkin as a “well-intentioned man.”

Later, federal prosecutors raised the subject again.

“Mr. Cook asked you your opinion about whether he was a well-intentioned man,” said Assistant U.S. Attorney Peter Deegan Jr. “Do you have any opinion about whether he was a law-abiding man?”

Cook objected. U.S. District Judge Linda Reade agreed. Bensasson never answered.

[Hat Tip: Neighbor Girl.]

Comments

[joe]

I am sorry I still don't see the GOV winning this case S.M.Rubashkin might not have the easiest time defending himself but at least according to the law your innocent until proven guilty

[effie]

That's because you're so incredibly biased.

[The sane one]

I honestly can't see a not guilty. This is a slam dunk. Burn in hell SMR.

[WoolSilkCotton]

++ joe | October 22, 2009 at 11:12 PM++

Amazing how progressive, open minded, and libertarian the black hat crowd becomes when one of their own is on trial for a felony. Defenders of 'innocent until proven guilty' in the black hat crowd? What a joke.

But don't worry Joe, SMR has plenty of family already in Otisville Yeshiva, and soon will be joined by his son-in-law there, so prison for a Rubashkin is really not that big a deal.

[Isa]

"""I still don't see the GOV winning this case"""
Remember the PETA video with the cow being hacked... the comments were... video is a fake etc etc etc

Maybe SMR has a picture of the Rebbe in each pocket. Maybe SMR placed a picture of the Rebbe in his lawyer's pocket. We saw SMR carry a picture of the Rebbe to Court.
How does it go again...
They pray to an idol who has eyes and yet cannot see hears that cannot hear etc etc

[Barry]

It seems that Guy Cook has not heard of the expression that the road to hell is paved with good intentions

[state of disgust]

Being bugged wasn't all SMR was afraid of --- I heard from someone inside the plant that before the famous "march of the penguins" took place to show the world what a great place Agri was, SMR was scared that one of the Rabbonim would demand access to his computer, so he had the hard drive for his office computer removed and told his IT guy to hide it until after the Rabbis left.

[Office of the Chief Rabbi]

יודע מחשבות הושיע נא

[Office of the Chief Rabbi]

Translation: "Knower of thoughts: Please save us!" (from the liturgy of Simhat Torah)

[Rob Wisler]

Sane One,

Although I deplore Rubashkin's mistreatment of Postville and it's powerless poor and agree with your disgust for this man, I think that "Burn in hell SMR!" is a bit much.

[Ben]

I don't know whether SMR did anything criminal or not, but I do know that lots of things that he have done were not moral.

He has destroyed his competitors by:
a) cooking the books to get big loans
b) paying least for labor
c) paying kosher certification organizations to diqualify his competitors

It is possible that he has done this to "make kosher meat available". But it is also possible that he wanted to become monopoly and then profit from this position by raising prices as all monopolies do.

[WoolSilkCotton]

Ben, (a) is illegal, maybe also (b).

[Auditor]

Shmarya,

The question was raised on UOJ how you have a right to keep funds that people donated specifically for your trip to Sioux Falls, which did not happen.

This smacks of Tropper pocketing Guma's money.

[Shmarya]

The question was raised on UOJ how you have a right to keep funds that people donated specifically for your trip to Sioux Falls, which did not happen.

Please.

There are 2 federal trials and 1 state trial, and the first federal trial just strted and will run for about 3.5 to 4 more weeks.

In other words, genius, there is lots of trial to yet to come.

But you knew that.

Troll.

[joe]

shmarya just give up and use your energies for
a real cause like the child molestation issue, at the end of the day u turned the Rubashkin case into something that it isn't, I mean this current trial is about bank fraud an issue that at most should have warranted an article or 2 not over 100 like u have posted, your just showing that u have a big issue with the family and are not doing this for moral reasons.

[Shmarya]

u turned the Rubashkin case into something that it isn't, I mean this current trial is about bank fraud an issue that at most should have warranted an article or 2 not over 100 like u have posted, your just showing that u have a big issue with the family and are not doing this for moral reasons.

Pathetic.

The trial is covered by the WSJ, by the Times, by dozens of newspapers and TV stations.

They cover it for the same reason I do: becasue the trial is NEWS.

[state of disgust]

So Joe, Rubashkin violations of kashrus are not crimes Shmarya should report on?
There is a direct link between the ethical failings of Agriprocessors, Madoff, and the money laundering in Deal, but you don't think the violations of torah, not to mention American jurisprudence are worthy of inquiry.
Your comment says more about you then it does Shmarya.

[joe]

its hard for me to understand your ramblings but just by looking at your name I can see that u are a sad person and things ain't going to good for u I hope your life gets a bit better then maybe u won't be so angry

[nachos]

Joe:

Can we agree on one thing. If Rubashkin is convicted, it is because G-d is against him now. Have a good shabbos

[Krewz]

State,

besides for Shmarya, who else reported "violations of kashrus"?

as Joe said "at the end of the day u turned the Rubashkin case into something that it isn't"

There were no kashrus problems in Agri, its just that Shmarya made you believe there were

[Shmarya]

That isn't what Rabbi belsky told me. Or several others.

[ah-pee-chorus]

+++ how you have a right to keep funds that people donated specifically for your trip to Sioux Falls, which did not happen.
This smacks of Tropper pocketing Guma's money.+++

donations are not tax deductible so there shouldnt be a legal issue. as far as a moral issue, i made a small donation and am quite content in knowledge that shmarya may or may not go, depending on others donations. did you give any money, auditor? or are you just out to protect those that did out of the goodness of your heart? and if he doesnt end up going and someone asks for a refund , that will be between them and shmarya.
your comparison to tropper is silly since shmarya is not pretending to have used the funds for a trip he did not take. he has stated quite openly that not enough funds were raised.

[WoolSilkCotton]

One week from today- the anniversary of the Mountain Dew Extravaganza!

http://www.crownheights.info/index.php?itemid=14011