99 and counting: More charges filed against Rubashkin

Sholom Rubashkin, former chief executive of the Agriprocessors kosher meatpacking plant in Postville, has been granted a new bail hearing, but the legal victory is bittersweet when placed in the shadow of a fourth superceding indictment containing 99 criminal charges.

Sholom M. Rubashkin

On Friday U.S. District Court Judge Linda R. Reade ordered a new detention hearing on Jan. 22 in Cedar Rapids. U.S. Magistrate Judge Jon Scoles had previously ordered Rubashkin to be kept in custody pending a September trial date. The decision, which was based in part on Israel’s Law of Return, has drawn an abundance of scrutiny.

“We are pleased with new hearing,” said Guy Cook, Rubashkin’s attorney and former deputy U.S. Attorney in Iowa’s Southern District. “It was very important to Mr. Rubashkin that he be given a new hearing that would allow us to present evidence rather than just review the cold record. He does look forward to presenting evidence and attempting to demonstrate to the court that the facts that Judge Scoles heard — which I’m sure he was motivated to do his best — but those facts were taken out of context.

“[Mr. Rubashkin] has no intention of flight. He was not going to flee then. He’s not going to flee now.”

A fourth indictment in the case, filed with the federal courts late Thursday, list charges ranging from immigration conspiracy to money laundering to willful violation of an order of the U.S. secretary of agriculture. In addition to Rubashkin, 49, the indictments also name the Agriprocessors company and former plant managers Brent Beebe, Hosam Amara and Zeev Levi. Both Amara and Levi are believed to have fled to Israel prior to charges being filed against them, and are being sought by federal authorities.

“I don’t want to violate any of the rules regarding comment, but you can make your own decision as to why it is a 99-count indictment,” Cook said. “Was there not 100 charges? Was there just one more than 98? … How many times to they have to go forward with charges in this case? People can make charges all day long, but they are still just charges. They shouldn’t take on a life of their own.”

Federal rules regarding a defense attorney’s comments allow for a firm denial of all charges. Cook was adamant that his client does deny all charges and that he will be found innocent.

“These are mere allegations that prove nothing,” he said. “[Rubashkin] is presumed innocent, and he is innocent until and unless the prosecution proves its case. Whether there are 99 charges or 9,000 charges filed is irrelevant.”

Cook listed Rubashkin’s strong ties to the Postville community as evidence that his client is not a flight risk.

“This is a man who has 10 children, and 8 of those 10 still live in Postville,” he said. “He built from the ground up two different schools. This is where his family is. This is where he lives. Not to mention that [if he would flee] it would be a dishonor to his family name and a much greater dishonor to large Jewish contingency that has rallied around him.”

Rubashkin has, according to his attorney, offered several options that could be stipulations to his release pending trial.

“We have offered 24-hour armed guards at his home and at his expense as a condition of release,” Cook said. “The guards would have the authority to arrest him if he left his property.”

This latest indictment primarily re-asserts and provides additional information regarding charges already on the books against the defendants. For instance, the prosecution included a list of 34 “overt acts” associated with charges of conspiracy to commit document fraud. In addition, individual names and instances are now associated with charges of aiding and abetting aggravated identity theft, and those instances are separated by defendant charged.

Among new information contained in the indictment are charges that the company, while under orders from the USDA to promptly pay for livestock purchases, continued to delay or withhold such payments. Meatpackers are required by law to make timely payments for livestock, generally no later than the following business day after an auction purchase agreement. The indictment lists 19 separate instances between February and April 2008 during which Agriprocessors allegedly broke the federal payment requirement. Most of the alleged slow pays were to Iowa cattle suppliers.

Ten counts of money laundering have been added to the charges against Rubashkin and Agriprocessors. All relate back to the earlier charges of bank fraud, when Rubashkin allegedly delayed payment desposits to inflate existing accounts receivable in order to allow the company to further draw from an existing line of credit. The counts document more than $1 million in company funds believed to have been hidden in accounts associated with the Jewish school and community.

In total, the indictment adds 14 counts of bank fraud, 42 counts of making false statements to a bank, 10 counts of money laundering and 20 counts of willfully violating the Packers and Stockyards Act for timely payment.

Beebe, who has previously appeared before the court, was released with an electronic tracking device. Rubashkin remains in federal custody in Dubuque. An arraignment on this latest indictment has been scheduled for 11 a.m. on Jan. 23 in Cedar Rapids.

The Agriprocessors plant, currently being administered by a bankruptcy trustee, was the site of a massive immigration raid on May 12. The trustee has resumed limited production at the Postville facility and is currently in negotiations with possible buyers.