US Attorney: "Orchestrated Efforts" Made To "Spread False Information Intended To Elicit Sympathy For" Rubashkin

“This case serves as a warning to employers that, if you build your business on the backs of an illegal workforce, ICE and other federal resources are there to make you pay the price.”

PRESS RELEASE

FOR IMMEDIATE RELEASE Date: June 22, 2010

SHOLOM RUBASHKIN SENTENCED TO 27 YEARS IN FEDERAL PRISON

The former CEO of Agriprocessors, Inc. was sentenced today to 27 years in federal prison.

Sholom Rubashkin, age 50, from Postville, Iowa, received the prison term after November 12, 2009, jury verdicts finding him guilty of 86 counts of financial fraud and related offenses.

Evidence at trial showed Rubashkin inflated Agriprocessors’ sales in order to fraudulently obtain millions of dollars in loans that were not backed by any collateral. Rubashkin also diverted millions of dollars in customer payments that were supposed to go to Agriprocessors’ primary lender. He committed money laundering by running tens of millions of dollars through bank accounts at a Postville grocery store and a religious school. The trial evidence showed Rubashkin was personally involved in harboring hundreds of undocumented worker at Agriprocessors and illegally delaying payments to Agriprocessors’ cattle suppliers. He paid for the purchase of fabricated IDs for undocumented workers and personally inspected those documents. Evidence showed Rubashkin’s fraud resulted in over $26 million in actual loss to Agriprocessors’ lenders.

Over a two-year time period when money was being fraudulently obtained from a lender, Rubashkin funneled about $1.5 million from Agriprocessors’ accounts to his personal bank accounts. The money was used, in part, to pay approximately $300,000 on his credit card bills, approximately $200,000 for a portion of the remodeling of his residence, approximately $76,000 for his personal state and federal income tax, approximately $41,000 for his mortgage payments on his personal residence, approximately $25,000 for jewelry, approximately $20,000 for sterling silver, $1,245 per month for life insurance, and $365 per month for his car payment.

“Sholom Rubashkin expended enormous efforts to hide his many crimes from the public and law enforcement. On top of that, there have been orchestrated efforts to spread false information intended to elicit sympathy for him. It is a tragedy that many people were misled by this misinformation calculated to distract the public from the truth. The truth came out at trial and sentencing,” said United States Attorney Stephanie M. Rose. “No one won anything today as the damage caused by Mr. Rubashkin cannot be fully tallied. However, today the house of cards he constructed finally was brought down. When something is built on lies, it should be no surprise when it collapses under the weight of those lies.”

-more-Rubashkin was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. His sentence was based, in part, on his leadership role in the crimes and his efforts to obstruct justice by testifying falsely at his trial. Rubashkin was sentenced to 324 months’ imprisonment. Special assessments of $8,600 were imposed, and he was ordered to make $26,852,152.51 in restitution. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.

“This prosecution and lengthy sentence resulted from an extensive two-year ICE worksite enforcement operation and follow-up investigation,” said Claude Arnold, Special Agent in Charge for the ICE Office of Investigations overseeing Iowa. “This case serves as a warning to employers that, if you build your business on the backs of an illegal workforce, ICE and other federal resources are there to make you pay the price.”

The United States Attorney’s Office works to ensure victims are made whole as quickly as possible and is seeking the public's assistance in locating or identifying Rubashkin's assets. If anyone has information regarding Rubashkin's assets with a significant value, they are urged to call 319-731-4080.

Rubashkin is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The investigation began in October 2007 and continued after the execution of search warrants at Agriprocessors on May 12, 2008.

The case was prosecuted by Assistant United States Attorneys Peter Deegan, C.J. Williams, and Matthew Cole, and the investigation has been led by U.S. Immigration and Customs Enforcement and the Federal Bureau of Investigation. Prior assistance was provided by the United States Marshals Service; United States Postal Inspections Service; Iowa Department of Public Safety; Iowa Department of Transportation; Federal Protective Service; Internal Revenue Service – Criminal Investigations; United States Department of Labor; Public Health Service; United States Department of Agriculture; United States Environmental Protection Agency; Iowa Department of Natural Resources; Drug Enforcement Administration; Waterloo Police Department; and Postville Police Department.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 08-1324 LRR.
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Comments

[FormerPostvillian]

"When something is built on lies, it should be no surprise when it collapses under the weight of those lies.”

That pretty much sums it up in my book.

[Cheskel]

Its hard to know a jury is reading the news and blogs during a trail or in this case. I cant see why they shouldn't even its not allowed.

Shmarya,you can path and praise yourself: Yes i did it i had a small hand in putting away Rubashkin for life. With your own comments and allowing other self hating Jews to comment stuff that you wont see only on officially anti-smetic sites you can easily call this blog Der shtirmer.

Just one tiny example:

Blair,

I fully agree with you.

I am overjoyed precisely because it is another Haredi who's going to prison for a long time.

I would like to see as many of them in jail as possible, and this is a positive step in the right direction.

Posted by: Bill | June 21, 2010 at 05:41 PM

[AGRI-vated Angel]

Yochanan,

I have 'discovered' a new release that would be perfect as a parody . . .

'Beg Steal or Borrow' from the forthcoming new album 'G_d Willin' & the Creek Don't Rise' by Ray LaMontagne.

Oh, please . . .

This song, as a 'Rubashkin parody', would be the ultimate! :)

[sage]

Hi AA,

When you can find out, please tell us here, how the Good Folks in Postville are reacting to the sentencing.

[Yochanan Lavie]

AA: Apart from Johnny Cash, I don't know country music. And yes, I already did a "Folsum Prison Blues" takeoff.

[Yochanan Lavie]

My latest parody is on the "porn" thread.

[Yochanan Lavie]

A Boy named Shol (apologies to Johnny Cash; Shel Silverstein)

Well, my Tatty left Brooklyn when I was three
and he didn't leave much to ma and me
just this old abattoir in the town of Postville
now I don't blame him, 'cause he's a choshover Yid
but the meanest thing that he ever did
was before he left he went and named me Shol.

Well he must a' thought that it was a Purim spiel
and it got a lot of laughs from some schlemiels
it seems I had to fight my whole life through
some cow would moo and I'd get red
and some banker laughed and I'd bust his overhead
I tell ya life ain't easy for a boy named Shol.

Well I grew up quick and I grew up Chabad
my learning got tough and my wits got hard
I'd roam from town to town to hide my fame
but I made a neder to the moon and stars
that I'd drink up mountain dew in bars
and kill some cows, that give me an awful shame

Well it was Postville in mid July
and I'd just hit town and my throat was dry
I thought I'd stop and have myself a Dew
at a bet midrash on a street of tar
there near the old abattoir
sat the choshover Yid that named me Shol.

Well I knew that chosid was my own sweet Tatty
from a worn out picture of the Lubavitcher Rebbe
and I knew that amulet to drive out evil eye
he was big and bent and gray and old
and I looked at him and my Dew poured cold
and I said 'My name is Shol, vos machst du,
l'chaim!'

Nu! that's what I told him

Well he wore tefillin right between the eyes
and he was davening but to my surprise
he come up with a knife and cut off a piece of my milah
and I yelled in pain, with no relief
and we crashed through the wall and into the street
praying and davening in the mud and the blood and the tefillah

I tell ya I've met frummer men
but I really can't remember when
he spoke like Bilaam's mule and he bit like the Prince of the Nile
I heard him laugh until he burst
and he went for his lawyer and I called mine first
he stood there lookin' at me and I saw him smile

And he said "Son this world is rough
and if a Jew's gonna make it he's got to be tough
and I know I wouldn't be there to help you along
so I give you that name and I said goodbye
I knew you'd have to get honest or lie
and it's that name that helped to make you strong"

He said "Now you just fought one hell of a suit
and I know you emulate me and you've got the loot
to sue me now, and I wouldn't blame you if you do
but you ought ta thank me before I'm niftar
for your kishkes and the spirit of a grifter
cause I'm the ben zonah that named you Shol"

Oy! well what could I do?
What COULD I do?

I got all choked up and I threw out my lawsuit
and I called him my Tatty and he called me cute
and I come away with a different point of view
and I think about him now and then
every time I try, and every time I win
and if I ever have a son I think I am gonna name him
Heshy or Aaron any damn thing but Shol.

[AGRI-vated Angel]

[Posted by: sage | June 22, 2010 at 05:45 PM]

Greetings Sage-

Father Ouderkirk will be here tomorrow. I plan to spend some time with everyone at the rectory. I do know he submitted a 'Letter to the Editor' which is printed in this week's issue of the Postville newspaper. I have not yet seen/read the letter.

As for the 'Jewish community', everyone seems very somber, a mixture of sadness & shock. There have been some small gatherings, primarily for emotional support, (I would surmise).

[AGRI-vated Angel]

Thanks Yochanan. Your parody, as usual, is exceptional! :)

[Office of the Chief Rabbi]

YL - a beaut. Maybe the best. I think I'll print it out and try it on the guitar.

[Yochanan Lavie]

Thanks, AA, OCR

[Abracadabra]

Yochanan -

This is a GREAT one! Especially because it's country! (I don't know much contemporary or classic rock.)
But everyone in the world has to know THIS song! (Okay, everyone EXCEPT the Ashkenazi parents in Emmanuel and Bnei Brak...) Even if you're not a country fan - it's a song you only have to hear once to never forget.

Thanks for the FUN and adding lots of humor to this mix!

[Yochanan Lavie]

Thanks, Abra. I should get into country; it's a big gap in my knowledge. I do like Johnny Cash, however.