Rubashkin backers decry 27-year sentence

2010-06-22T03:15:00Z 2011-09-16T11:59:15Z Rubashkin backers decry 27-year sentenceBy JEFF REINITZ, jeff.reinitz@wcfcourier.com Waterloo Cedar Falls Courier

WATERLOO - Former Agriprocessors executive Sholom Rubashkin will be sentenced to 27 years behind bars in connection with federal bank fraud convictions Tuesday in U.S. District Court in Cedar Rapids.

Although the proceedings are slated to start at 3:30 p.m., Judge Linda Reade announced the punishment in an order issued Monday morning.

The sentence - which was above the 25 years the government had suggested and a far cry from the six years the defense was seeking - drew criticism from Rubashkin's defense team and family.

"It is heartbreaking to see the judge and the prosecution make an example out of Sholom Rubashkin at the expense of his family and community," his wife, Leah, said. "What has happened today is inconsistent with the idea of equal justice under the law."

Defense attorney Guy Cook called the punishment a life sentence for the 51-year-old Rubashkin.

Authorities said Rubashkin, who was described as the CEO and co-vice president of Agriprocessors when it was raided by immigration officials in May 2008, instructed employees to alter company records so a bank would continue loaning Agriprocessors money after the raid.

He was convicted of 86 fraud-related counts in November following trial. A two-day sentencing hearing started in April, and Judge Reade delayed her judgment until today,

In the meantime, he was acquitted of state child labor charges in June following a trial in Waterloo.

In her 52-page order filed Monday, Reade sentenced Rubashkin to 27 years - about one year for every $1 million in losses - in prison to be followed by five years of supervised release.

There is no parole in the federal prison system.

She also ordered him to pay $18.5 million in restitution to First Bank Business Capital, $8.3 million to MB Financial Bank and $3,800 to Waverly Sales Inc.

She declined to impose a fine in connection with the case.

Rubashkin's attorneys have vowed to appeal the sentence.

Cook noted that others convicted of similar crimes have received lighter sentences. Mark Turkcan, president of First Bank Mortgage of St. Louis, who misapplied loans for a loss of $25 million, was sentenced to one year and one day in federal prison. Financier Michael Milken received two years for $500 million in losses, Cook said.

"This sentence is greater than necessary, indeed it is greater than what the government asked for," Cook said.

He said Rubashkin looks forward to appealing both the sentence and the underlying charges.

"He's calm. He's focused, and he recognizes that ultimately what happens here is in the hands of his God," Cook said.

The defense team would like to see Rubashkin assigned to the Federal Correctional Institution in Otisville, N.Y,, because of its experience in accommodating the religious observations of Ultra Orthodox Jews. Failing that, they would like to see him housed at the institution in Fort Dix, N.J., Cook said.

Wife Leah Rubashkin said the family plans to leave Postville in the event he is imprisoned on the East Coast.

"We will be relocating the New York area to be close to Sholom if that's where he will be," she said.

"This has been very hard on our children, especially my two youngest children who sleep with me every night and have been very deeply affected by all this," Leah Rubashkin said.

She said it has been hardest on their 17-year-old autistic son.

"He can't really understand what he feels and what it's all about... He's been regressing terribly, and it's heartbreaking to watch this," she said.

Reade determined the actual amount of losses involved in the fraud was $26.8 million.

Sholom Rubashkin allegedly directed company employees to create false invoices, divert customer accounts receivable and misrepresent Agriprocessors's compliance with the law, Reade wrote in her ruling. The result was that FBBC make loans it believed was secure by collateral.

 

Copyright 2015 Waterloo Cedar Falls Courier. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(24) Comments

  1. gchrv
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    gchrv - July 12, 2010 11:53 pm
    This whole Rubashkin is very troubling to me. It seems that if the government has something against you, they can tear you down totally and completely.

    Leading up to the raid on Agriprocessors the government painted the company as one of the worst drug producing and sexual abuse hubs in the country, lead by a drug king Sholom Rubashkin. But in the end it all boiled down to inflating invoices… yes it’s a crime but does it deserve to destroy a huge company? Destroy thousands of jobs? Put a father of 10 – with a long history of community service – in jail for LIFE?

    Did he scheme to defraud and steal money for the bank? Did he have any intention NOT to repay every last penny of the loan? That is until the government directly caused it to go bankrupt?

    And after they filed for bankruptcy protection, when attempting to sell the company to minimize the loss to the debtors, the US GOVERNMENT threatened serious potential buyers with Forfeiture if they employ ANY member of the Rubashkin family – even those not charged with anything!!! – Basically turning away all serious investors. Rubashkin’s were ONLY ones with intricate knowledge of the national kosher meat industry, and without their input, it would be very difficult to succeed.

    Then, after causing serious buyers, willing to pay in the vicinity of 25 million dollars for the company to turn away, the government charges Sholom Rubashkin for causing a $27 million dollar loss to the bank… who caused the loss to the bank? This is a sad chapter in the US justice history…
  2. mother3
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    mother3 - June 25, 2010 10:09 pm
    Oh, and "life sentence" is not 27 years in prison. He's very fortunate he had the pleasure of living the first 50 some years of his life in total luxury and loaded with money.
  3. mother3
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    mother3 - June 25, 2010 10:07 pm
    This sect of Judiasm was still acting like they did in their old country - they didn't assimilate very well into American society. Take a bath, keep your beard trimmed, wear the nicest clothing you can afford, don't be greedy, respect your wife and fellow man. This bunch of bozos in Postville were no better than the illegal aliens sneaking across the borders to do the slave labor for his company for which he improperly treated them to boot.
    Having freedom of religion is fine, but this was really pushing the seams.
  4. panther13
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    panther13 - June 24, 2010 4:10 pm

    Missyb said: "I was outraged when Mrs. Rubashkin said that it was only fair to treat her husband "Like any other person in the United States of America". Why would she want that? Her husband has been driven back and forth from CR daily (at our expense, been provided with "kosher food, kosher dishes, pans, serving utensils" all to be used by this one man. He has been catered to the entire time he has been incarcerated. NO other inmate is afforded all the special treatment the taxpayers have paid for during her husband's stay. My question is - will this special "kosher" treatment continue in federal prison? If so, he will be an extremely costly criminal. Sorry Bubba - no chance to share a cell with this one - I'm sure his will be kosher and all to himsef."

    funny how certain groups demand equality and then ask for special rules that only apply to them.

  5. dfrank5775
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    dfrank5775 - June 24, 2010 2:41 pm
    Steotypes are even close to 100% correct, but there is a reason that that steotype exist.
  6. Missyb
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    Missyb - June 23, 2010 2:12 pm
    I was outraged when Mrs. Rubashkin said that it was only fair to treat her husband "Like any other person in the United States of America". Why would she want that? Her husband has been driven back and forth from CR daily (at our expense, been provided with "kosher food, kosher dishes, pans, serving utensils" all to be used by this one man. He has been catered to the entire time he has been incarcerated. NO other inmate is afforded all the special treatment the taxpayers have paid for during her husband's stay. My question is - will this special "kosher" treatment continue in federal prison? If so, he will be an extremely costly criminal. Sorry Bubba - no chance to share a cell with this one - I'm sure his will be kosher and all to himsef.
  7. EsquireIowa
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    EsquireIowa - June 22, 2010 1:12 pm
    He & his henchmen helped turn Postville into something that belongs in a Third World Nation. Shalom!
  8. foxfire
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    foxfire - June 22, 2010 12:08 pm
    He did the crime, now he can do the time! I hope all his supporters chip in and pay the fine. Laws like they passed in AZ and Freemont, NE will help keep people like this from corrupting our immigration laws.
  9. wujethro
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    wujethro - June 22, 2010 11:48 am
    27 years...and restitution of 27 million dollars...a million a year sounds fair to me.
  10. meatgal
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    meatgal - June 22, 2010 9:29 am
    shameshame said: "Amen to that!!! I hope this teaches there nation it's not good to mess with United States. "

    their nation? what in the world are you talking about...Rubashkin is a United States citizen...if you are referring to his being Jewish as another nation that he belongs to...what are you talking about?

  11. shameshame
    Report Abuse
    shameshame - June 22, 2010 7:46 am
    gchrv said: "Professor William L. Anderson ExplainsTomorrow, Sholom Rubashkin, who was the vice-president of what was once the largest kosher meat processing supplier in the world, will be sentenced to federal prison for “financial fraud.” Prosecutors will ask for essentially a life sentence, while a lot of other people, including a number of former U.S. attorneys general, are asking for leniency.I will go against all of them. Sholom Rubashkin, in my view, does not need “leniency.” He needs to be freed, period, for the man is not a criminal, which is more than I can say for the people who hounded and prosecuted him and destroyed his business, glatt kosher Agriprocessors of Postville, Iowa. Let me begin.read full article:www.shturem.org/index.php?section=artdays&id=2157"

    What you do in the dark always comes to the light and this is a true fact!! that's why we wasnt goin to let him beat this charge. so long my fellow injoy the rest of your days in there praising your god
  12. shameshame
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    shameshame - June 22, 2010 7:44 am
    stenny1963 said: "Justice is served!!!!"

    Amen to that!!! I hope this teaches there nation it's not good to mess with United States.
  13. shameshame
    Report Abuse
    shameshame - June 22, 2010 7:43 am
    gchrv said: "Free Sholom Rubashkin!Professor William L. Anderson ExplainsTomorrow, Sholom Rubashkin, who was the vice-president of what was once the largest kosher meat processing supplier in the world, will be sentenced to federal prison for “financial fraud.” Prosecutors will ask for essentially a life sentence, while a lot of other people, including a number of former U.S. attorneys general, are asking for leniency.I will go against all of them. Sholom Rubashkin, in my view, does not need “leniency.” He needs to be freed, period, for the man is not a criminal, which is more than I can say for the people who hounded and prosecuted him and destroyed his business, glatt kosher Agriprocessors of Postville, Iowa. Let me begin.read full article:http://williamlanderson.blogspot.com"

    We all know that he was guilty face it he needs to go to prison for what he did!!!! so long to him
  14. Del
    Report Abuse
    Del - June 21, 2010 6:59 pm
    The news gets better: there is no parole in the Federal system. This convict will serve his full sentence. As your former employees would say, 'Hasta la vista, baby'
  15. iowa41
    Report Abuse
    iowa41 - June 21, 2010 5:25 pm
    When the immigration raid first happened there were many lifelong residents of the Postville area that were angry.Many knew there were illegal aliens working in that plant but had looked the other way for years because of the volume of business that this plant pumped into the local economy.Some of the laws he broke cannot be defended,but some are not that much different than the actions of some wall street firms.
    He didn't force the workers to come to Postville and he didn't force Iowa farmers and suppliers to do take his money,,even though many suspected he had illegal employees.

    When you buy meat do you know/care if it was packaged and processed by a U. S. citizen,or is out of sight out of mind good enough?
  16. boscoebell
    Report Abuse
    boscoebell - June 21, 2010 5:04 pm
    I aagree--justice was served. I spent time in Postville after the raid, working with those people that found refuge at St. Bridget Catholic Church and viewed first hand the effects that this all had on them and their families. It was absolutely tragic. All Mr. Rubashkin thought of was the money that he personally was making---not about lives nor about defrauding the banking industry. Money was his god--he will now certainly have plenty of time to think.
  17. panther13
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    panther13 - June 21, 2010 3:34 pm
    Im glad to see some justice has been served. This man knowingly bankrupted a town with his illegal activities. He is a prime example of what is wrong with the immigration problem. The united states actually takes some action against the people that fuel illegal immigration and certain people cry foul what a load of bs. I support AZ and I support this man being locked up for 27 years. The sad part is he is still better off then the people he exploited and the town he bankrupted.
  18. dfrank5775
    Report Abuse
    dfrank5775 - June 21, 2010 2:36 pm
    gchrv said: "Professor William L. Anderson ExplainsTomorrow, Sholom Rubashkin, who was the vice-president of what was once the largest kosher meat processing supplier in the world, will be sentenced to federal prison for “financial fraud.” Prosecutors will ask for essentially a life sentence, while a lot of other people, including a number of former U.S. attorneys general, are asking for leniency.I will go against all of them. Sholom Rubashkin, in my view, does not need “leniency.” He needs to be freed, period, for the man is not a criminal, which is more than I can say for the people who hounded and prosecuted him and destroyed his business, glatt kosher Agriprocessors of Postville, Iowa. Let me begin.read full article:www.shturem.org/index.php?section=artdays&id=2157"

    ______________________________________________________________________________________

    He was convicted by a court of law. That makes him a CRIMINAL!
  19. gchrv
    Report Abuse
    gchrv - June 21, 2010 12:02 pm
    Rubashkin defense team responds to 27-year sentence

    http://tinyurl.com/23mj95o
  20. gchrv
    Report Abuse
    gchrv - June 21, 2010 12:01 pm
    Free Sholom Rubashkin!
    Professor William L. Anderson Explains

    Tomorrow, Sholom Rubashkin, who was the vice-president of what was once the largest kosher meat processing supplier in the world, will be sentenced to federal prison for “financial fraud.” Prosecutors will ask for essentially a life sentence, while a lot of other people, including a number of former U.S. attorneys general, are asking for leniency.

    I will go against all of them. Sholom Rubashkin, in my view, does not need “leniency.” He needs to be freed, period, for the man is not a criminal, which is more than I can say for the people who hounded and prosecuted him and destroyed his business, glatt kosher Agriprocessors of Postville, Iowa. Let me begin.

    read full article:
    http://williamlanderson.blogspot.com
  21. meatgal
    Report Abuse
    meatgal - June 21, 2010 11:53 am
    Finally a LOUD voice of reason in this whole mess! Thank you Judge! buh bye Rubashkin.
  22. likestodebate
    Report Abuse
    likestodebate - June 21, 2010 11:44 am
    I bet he won't have that smug laugh on his face when he meets Bubba in his cell. 27 years out to give him plenty of time to think about all the shady things that went on in that place.
  23. stenny1963
    Report Abuse
    stenny1963 - June 21, 2010 11:20 am
    Justice is served!!!!
  24. gchrv
    Report Abuse
    gchrv - June 21, 2010 10:58 am
    Professor William L. Anderson Explains

    Tomorrow, Sholom Rubashkin, who was the vice-president of what was once the largest kosher meat processing supplier in the world, will be sentenced to federal prison for “financial fraud.” Prosecutors will ask for essentially a life sentence, while a lot of other people, including a number of former U.S. attorneys general, are asking for leniency.
    I will go against all of them. Sholom Rubashkin, in my view, does not need “leniency.” He needs to be freed, period, for the man is not a criminal, which is more than I can say for the people who hounded and prosecuted him and destroyed his business, glatt kosher Agriprocessors of Postville, Iowa. Let me begin.

    read full article:
    www.shturem.org/index.php?section=artdays&id=2157
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