Agriprocessors' Trustee's Attorney Tries To Quash Chabad Alleged Money Laundering Story
Paula Roby, an attorney for Agriprocessors' bankruptcy trustee Joeseph Sarachek (pictured at right), tells Sarachek that she won't let Chabad's alleged money laundering be a story here. Here is that email.
Paula Roby, one of Sarachek's attorney's, made a bit of an email gaffe and accidentally sent her response to Sarachek to me.
Please click to enlarge:
Update 5:16 pm CDT – Before Roby responded to Sarachek, I emailed Sarachek's main attorney, Dan Childers:
Dan –
Hi. Joe Sarachek referred me to you.
I saw that you settled with Colel Chabad and Bet Kahila. What defenses did these two charities raise that prompted you to decide to settle for such a small amount of money from each of them? Is this something you coordinate with the US Attorney or is this completely separate?
I take it that you know that Sholom and Aaron Rubashkin are very close to men that run these two charities. Duchman from Colel Chabad is also related to Rubashkin, and Zeilingold is Sholom Rubashkin's former rabbi. His kosher supervision gave its imprimatur to Agriprocessors. Also, Bet Kahila is not the name of Zeilingold's synagogue. The synagogue is Adath Israel. Bat Kahila was allegedly started to allow Zeilingold to have a second parsonage and to take in "donations" that he did not want to share with the synagogue. United Mehadrin Kosher was a branch of the synagogue. Are you aware of these facts? If so, how do you explain allowing these two organizations to settle for such small amounts of money? How is this fair to all the small creditors – like employees whose medical bills were not paid because Sholom Rubashkin and his family apparently chose to loot the company instead of paying the insurance premiums?
Thank you.
Best,
Shmarya Rosenberg
Here is the response from Childers in full:
Every settlement is made based on what we believe is the best net recovery for the bankruptcy estate.
This is how I responded, a few moments after receiving Childers' email:
I understand that. But what are the reasons that these two charities were allowed to repay so little? What defense did they have that caused this decision to be made?
Childers did not answer. Roby's mistaken email arrived a few moments later.
Update 5:32 pm CDT – Joseph Sarachek's bio and contact information, which was on the CRT Capital Partners website earlier this afternoon, has now been removed as has any other mention of him on the site.
Related Post: Chabad Charities That Allegedly Laundered Millions Of Dollars For Agriprocessors Must Repay Only Thousands.
So THAT guy wants to write THAT story about THOSE gonavim on THAT website? THAT'S hilarious!
Posted by: Sarek | May 03, 2013 at 04:56 PM
("I Like It Like That", Dave Clark 5)
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
I said the story is written by a guy like THAT
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
I said the story is written by a guy like THAT
They got a settlement a-with the court
THAT website wants to describe the tort
Now you hide 50K and I’ll hide 10
And I’ll make them think we’re all wise men
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
I said the story is written by a guy like THAT
The investors they had conned there, they lost their shirts
But it’s ok, their wives had long skirts
The workers were yellin’ and shoutin’ for more
But the boss was a big shnorrer
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
I said the story is written by a guy like THAT
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
Come on, (come on) let me tell you the settlement
I said the story is written by a guy like THAT
Posted by: Sarek | May 03, 2013 at 05:04 PM
LOL!
But covering up is hardly acting in the public interest as a trustee.
Posted by: Eli, what me messiah? | May 03, 2013 at 05:07 PM
It looks obvious that the reply was not supposed to be cced to Shmarya.
People still do not know how to use email.
Esp lawyers... Imagine sending replies containing private information by accident to the other side. And yet they get paid so much, even for their mistakes.
Anyway, in this case, it is enlightening.
Posted by: BeenThereDoneThat | May 03, 2013 at 05:16 PM
Never put anything in an e-mail that you're not willing to have exposed. At least use a phone rather than leaving a 'paper' trail.
If you really need confidentiality, meet the person you need to speak with. And if a wink or a nod will get the message across, don't use words.
And DON'T blog or send e-mails when you've been drinking.
Posted by: WoolSilkCotton, I am a work of art as well as a sports and rock superstar | May 03, 2013 at 06:04 PM
I hope Sholom Rubbishcan falls in the shower, cracks his skull and dies.
וּבַאֲבֹד רְשָׁעִים רִנָּה ...
Posted by: Nigritude Ultramarine | May 03, 2013 at 06:15 PM
"It looks obvious that the reply was not supposed to be cced to Shmarya."
You see, this is the type of thing that happens when retailers like Walmart sell computers. It appears that Pauly Roby is so inept with technology that she can't even CC an email -- she e-mailed Shmarya directly.
Posted by: Nigritude Ultramarine | May 03, 2013 at 06:25 PM
Wasn't Dan Childers the guy who sent letters to farmers telling them they had to pay back the money they received from Rubashkin, and caused some of them a lot of sleepless nights? I believe the farmers' associations counseled their members on how to twart these efforts.
A long time I raised the possibility that Agriprocessors was systematically looted.
Maybe the prosecutors want to look at these proposed settlements that the bankruptcy court has not approved yet.
Posted by: First Generation Bavarian American | May 03, 2013 at 08:14 PM
Thnx Shmarya,
~for remembering the ppl who were bilked out of medical coverage due to blatant disregard on the part of the Rubashkin family. I heard far too many devastating consequences, as a result.
['How is this fair . . . like employees whose medical bills were not paid because Sholom Rubashkin and his family apparently chose to loot the company instead of paying the insurance premiums?']
Posted by: AGRI-vated Angel | May 04, 2013 at 08:49 AM
For so many, many reasons, the sentence of 27 years is NOT Draconian; it is very, very appropriate and absolutely necessary.
SMR cannot be allowed free. He remains a danger to the public.
There is no question that if given the chance again, he will return to his criminal ways. Time and time again, he and his supporters make it clear that they have still learned nothing from this entire experience.
I still feel that if NU's scenario described at 6:15 above were to happen, the world would be a safer place and taxpayers would benefit.
Posted by: WoolSilkCotton, I am a work of art as well as a sports and rock superstar | May 04, 2013 at 09:12 AM
sarcastically:
""
I hope Sholom Rubbishcan falls in the shower, cracks his skull and dies.
וּבַאֲבֹד רְשָׁעִים רִנָּה ...
Posted by: Nigritude Ultramarine | May 03, 2013 at 06:15 PM ""
This must have been posted by a Rubashkin troll [wishing for his suffering to end]
ME? Oh no, I wish him a long healthy life at least for the next 26 years
Posted by: Isa | May 04, 2013 at 08:52 PM
Seriously this is a major coup for Shmarya
I recommend sending everything to the major creditor- I think they would find this highly 'interesting' the bankruptcy guy is a shill for Chabad
Posted by: Isa | May 04, 2013 at 08:57 PM
She wont "let" this be a story? Seriously? This is a HUGE story!!!
First of all, I, for one, did not realize that 17.89 million was sent from Agriprossesors to charities when the company was supposedly "in crisis" and not able to pay it's bills. THAT in itself is a big story!!
But then when the court appointed Bankruptcy Trustee (notice the word "Trust" in there!) goes and settles for pennies on the dollar? OMG!!! That is a HUGE story!
It's also a BIG story why the Feds didn't audit those charities. Every one of them should be audited because after the raid, every penny that went from Agriprossesors to pay ANYONE other than a long time vendor or the bank, should be suspected to be looted funds!
Are the Feds asleep?
Was someone paid off?
How is this being allowed?
Does the bank, which is still owed over 20-million, know about this?
Posted by: Abracadabra | May 04, 2013 at 11:39 PM
not sure what you don't understand here. They see you as the piece of garbage most of the rest of us see you as. And you'll try to make this a story (has anyone else noticed the comments drying up on average?). You'll get nowehere with this one just as you're getting nowhere with much else lately.
Maybe it's time we start investigating shmarya's tax returns, income streams, and how many psudonyms he posts under to promote his own views.
Posted by: David4 | May 05, 2013 at 04:58 AM
The real problem is, that the only people who have standing to challenge the Trustee are creditors (most of whom have insufficient funds to justify a challenge). Wonder if the bank(s) are aware of this? They might be motivated to do something ....
Posted by: MarkfromShortHills | May 05, 2013 at 08:01 AM
David4, you are in a tiny minority and you know it. And this story is potentially quite important. The only question is whether the banks (i.e. large creditors with a sufficient economic incentive) would be motivated to challenge the Trustee.
Posted by: MarkfromShortHills | May 05, 2013 at 08:03 AM
I had a stupid dream last night. I dreamed that they paid off the trustee and the attorneys working for the trustee.
Posted by: FirstGenerationBavarianAmerican | May 05, 2013 at 09:20 AM
FGBA –
LOTS of people had that same dream, FGBA. LOTS.
Posted by: Shmarya Rosenberg | May 05, 2013 at 09:22 AM
Its way too complicated for me, but is there no way for the banks to claw back this money from wherever it went beyond these "charities" into whatever pockets they ended up in? Something like because they are proceeds of illegal activities?
Posted by: Seraphya Berrin | May 05, 2013 at 10:17 AM
http://thegazette.com/2013/05/05/five-years-later-ever-changing-diversity-maintains-postville/
Also,Iowa Public Television will have a program on May 10 at 8:30 pm titled "Postville:Five Years Later"
Posted by: Neighbor Girl | May 05, 2013 at 03:21 PM
The trustee and counsel are acting correctly. Their job is to collect the most money net of attorney fees in the shortest possible time-not to punish people or make a point. There is no question they could obtain a judgment but could it be collected? A not for profit organization like this defenant may have few assets. It may rent a building and simply have income from tuition and contributions. If your favorite charity was hit with a judgment would you contribute to it to pay it off? The better point here is that this is yet another indication of the evil natur eof chabad. Instead of simply promoting thier acitviites the mainstream Jewish press needs to do more articles on its true nature. Here in Saint Louis it would be appropriate to do a story on how Chabad essentially, through the Rubashkin family stole money from a Saint Louis Bank.
Posted by: norm | May 05, 2013 at 04:14 PM
Norm, I disagree. If the Trustee were acting correctly, why the refusal to give an explanation?
Posted by: Eli, what me messiah? | May 05, 2013 at 04:23 PM
He really did give an explanation-its shorthand which essentially means "We could get a judgment against them but collectin g would be difficult."
If a creditor objects to the settlement ther would be a hearing and I'm sure that's what the trsutee would say.
He oculd spend alot of the estate's money chasing them and the only winner would be his firm. I believe he is acting ethically.
Posted by: norm | May 05, 2013 at 05:42 PM
Could they continue tracing the money to wherever these charities put it next?
That is the real question. Any lawyers know?
Posted by: Seraphya Berrin | May 07, 2013 at 09:54 PM
Hey, hey Paula,
I wanna depose you.
Hey, hey Paula,
no one else could ever do.
I've been waiting so long
to interrogate you.
Paula, I can't wait no more for you,
Raise your right hand
and soon we'll be through...
Hey, hey, hey Paula....
Posted by: dh | May 08, 2013 at 09:01 PM