Rubashkin Allegedly Bribed Postville Mayor, Report Says

The report suggests that the Court vary upward based on Mr. Rubashkin's other alleged criminal conduct. In particular, the probation officer has referenced an allegation that Agriprocessors bribed Robert Penrod, the former mayor of Postville.

From Defendant's Motion For Downward Departure and/or Varience submitted by Sholom Rubashkin to the court on 4-9-10:

…The presentence report suggests that the Court depart or vary upward based on Mr. Rubashkin's other alleged criminal conduct. In particular, the probation officer has referenced an allegation that Agriprocessors bribed Robert Penrod, the former mayor of Postville. The probation officer's characterization of the conduct is inaccurate, and in fact, the conduct does not support either an upward departure or variance.

Defendant Rubashkin does not deny that Agriprocessors loaned Penrod money. Agriprocessors made the loan, however, under duress from, Penrod who essentially extorted the loans. Among other things, Penrod approached Sholom and played him a tape of Penrod meeting with Union officials. During the conversations, the Union officials made clear that it planned to make life difficult for Agriprocessors. See FMB docs and Tape with the Union. Penrod suggested to Sholom that if the loan was not extended, the city council would make things very difficult for Agriprocessors.

Penrod's threat greatly concerned Sholom, because Agriprocessors had a history of difficulties with the city council. Sholom consulted with Heshy and Aaron Rubashkin about whether Agriprocessors should loan Penrod money. Aaron approved giving the loan.…