This time Sholom Rubashkin, 49, is facing federal bank fraud charges. Two weeks ago, he made an initial appearance on federal charges of conspiring to hire undocumented workers and document fraud.
Judge Again Denies Bail to Rubashkin, Dampening His Hopes to be Released for Chanukah
CEDAR RAPIDS, IA –The former leader of a controversial meatpacking plant in Postville was back in federal custody Friday morning.
This time Sholom Rubashkin, 49, is facing federal bank fraud charges. Two weeks ago, he made an initial appearance on federal charges of conspiring to hire undocumented workers and document fraud.
Rubashkin was arrested Friday morning at his home in Postville. The new charge came after the main lender for Agriprocessors tried to get a receiver appointed to run the company’s business.
First Bank of St. Louis claimed Agriprocessors and Rubashkin as the former general manager, violated the terms of a $35-million operating loan.
The federal complaint notes that “…the loan agreement with First Bank required Agriprocessors to deposit customer payments on accounts receivable directly into a designated depository bank account.”
But a federal agent says a search warrant on November 4th found evidence that “…Sholom Rubashkin fraudulently diverted millions of dollars in First Bank collateral…and the scheme resulted in the fraudulent inflation of the value of Agriprocessors’ accounts receivable.”
An informant told federal agents after the immigration raid last May, Rubashkin would divert payments to different accounts in violation of the loan agreement. And after his arrest in October, Rubashkin ordered the records of those alleged fraudulent transactions erased.
In the hearing Friday, the government asked that Rubashkin be detained in jail pending future federal trials or hearings. Assistant U.S. Attorney Peter Deegan told a federal magistrate that there is a greater risk Rubashkin could flee because he is now facing even more serious charges. In addition, part of the criminal complaint involves allegedly removing evidence in violation of his pre-trial release on the earlier charges.
Rubashkin faces up to a 30 year federal term and a $1 million fine if convicted of the new bank fraud charge. The earlier federal charges of harboring illegal workers and document fraud carry possible 10 year terms.
The federal magistrate ordered Rubashkin held in jail pending a detention hearing next Wednesday. That hearing will determine if Rubashkin is released again or must remain behind bars until trial.
Rina
A horrible tragedy. He and his family need our tefillos for a miracle. May moshiach come and may Sholom and his family farbrang with k’lal Yisroel in Yerushalyim.
Paul Freedman
to make this clearer–the charge is that his loans were based on accounts receivable–the amount of money people owed him; if those who owed the firm money paid the money but he did not acknowledge the payment by placing it in the designated account but putting it in other accounts then he was inflating the value of money people owed the firm, and by the agreement with the bank (based on money owed, not payed) he could borrow more money even as he was hiding the collateral for those loans (the money people who owed the money actually payed) — that is the charge
Riva
This is a very sad story for us all. This is not only the Rubashkins.. This means all of us. Kol Yisroel Areivim zeh Lozeh.
He is being exsessively prossecuted. They are after him because he is a very visisble Jew, make no mistake about it.
This case is sounding more and more like Pollard- Hashem Yirachem
pidyon shivuyim
He also needs money to pay his lawyers. Does anyone know where to send that to? (Please, I am asking a favor, that noone respond to this post with anything negative. We don’t need more loshon hora etc., just mitzvos for everyone!!!!
David
Why do all protect this ganef. Just because he known as a Bal Tzedakah does not excude his theivery. If I stole and gave the money to Tzdekah…Big deal. This practice is done by so many people. Please wake up and smell the roses.
Why, Oh-Why....
Do we need to spread on OUR news websites terrible news about one of our brethern?!
Rivky
Donate to Aleph’s legal fund here
http://www.aleph-institute….
They are helping with his legal charges