Sholom Rubashkin, 49, former CEO of Postville, Iowa-based kosher meatpacking company, Agriprocessors, was arrested on bank fraud charges Friday morning. Rubashkin had also been arrested late last month on federal charges of conspiring to hire undocumented workers at the meat processing plant, but was out on bond. The new charges allege that Rubashkin diverted at least $10.9 million in funds from Agriprocessors accounts to other accounts, including one for Kosher Community Grocery, in which he is a part owner. Agriprocessors filed for bankruptcy last month after an ICE raid apprehended nearly 400 illegal alien workers at the plant. Last year, Agriprocessors executives agreed to pay $1.4 million to settle a separate case alleging a scheme to hide another company’s assets in bankruptcy. Rubashkin faces up to 52 years in prison if convicted on all the charges. We also note that Sholom's brother, Moshe Rubashkin, was convicted of bank fraud in 2002 and sentenced to 15 months in prison.Sunday, November 16, 2008
Iowa Meatpacking Exec Arrested On Bank Fraud Charges
Sholom Rubashkin, 49, former CEO of Postville, Iowa-based kosher meatpacking company, Agriprocessors, was arrested on bank fraud charges Friday morning. Rubashkin had also been arrested late last month on federal charges of conspiring to hire undocumented workers at the meat processing plant, but was out on bond. The new charges allege that Rubashkin diverted at least $10.9 million in funds from Agriprocessors accounts to other accounts, including one for Kosher Community Grocery, in which he is a part owner. Agriprocessors filed for bankruptcy last month after an ICE raid apprehended nearly 400 illegal alien workers at the plant. Last year, Agriprocessors executives agreed to pay $1.4 million to settle a separate case alleging a scheme to hide another company’s assets in bankruptcy. Rubashkin faces up to 52 years in prison if convicted on all the charges. We also note that Sholom's brother, Moshe Rubashkin, was convicted of bank fraud in 2002 and sentenced to 15 months in prison.
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