The Associated Press
A federal judge has ordered members of the family that owned a kosher slaughterhouse in Iowa to pay more than $2 million after defaulting on financial agreements with one of their former banks, which has since collapsed.
U.S. District Judge Edward McManus on Thursday entered a summary judgment in favor of the Federal Deposit Insurance Corp. and Value Recovery Group, L.P. and against brothers Sholom and Tzvi Rubashkin and their father, Aaron Rubashkin.
The family owned the Agriprocessors, Inc. meatpacking plant in Postville, which was the site of a 2008 raid in which 389 illegal immigrants were detained. The plant eventually filed for bankruptcy and was sold after the raid, which was the largest in U.S. history at the time.
Sholom Rubashkin, the company’s vice president, was later convicted on federal financial fraud charges, sentenced to 27 years in prison and ordered to pay $27 million in restitution. Prosecutors said he intentionally deceived the company’s lender and told employees to create fake invoices in order to show St. Louis-based First Bank the plant had more money flowing in than it did. He has appealed his conviction.
Georgia-based Omni National Bank sued the family last year after the Rubashkins stopped making payments on a $300,000 line of credit they received for a property rental company in Postville and on equipment they were renting from the bank. The equipment, including conveyor belts, labeling machines and computers, was used at the meatpacking plant.
Federal regulators shut down Omni days after it filed the lawsuit, saying it had engaged in “unsafe and unsound practices” after making bad real estate loans.
The FDIC was appointed Omni’s receiver and continued the lawsuit. Value Recovery Group, based in Ohio, bought the debt Aaron Rubashkin owed on the leases and joined the case.
Court records show the Rubashkins personally guaranteed the $300,000 line of credit for the rental company, Nevel Properties Corp., in 2007. McManus ruled the trio owes the FDIC nearly $290,000 for that loan plus interest. Nevel Properties rented out apartments and homes to many Agriprocessors employees.
McManus also ordered Aaron Rubashkin, who was president of Agriprocessors, to pay Value Recovery Group nearly $1.8 million for the equipment leases, which was the amount owed after equipment was sold during bankruptcy proceedings, plus interest.
Michael Mallaney, a lawyer who represented the Rubashkins, asked the court for more time to file a motion opposing summary judgment after joining the case in September, but U.S. Magistrate Judge Jon Stuart Scoles rejected that request in October. Scoles said the defendants had failed to show cause for the extension.
“Here, defendants have made virtually no effort to actively defend this case,” he wrote.
u are so dumb. We have a right to feel mad that the linda reade bla bla bla person has taken away someone loyal and a big chossid.
Bank robs you!
no! i dont allow that to happen! we must daven to hashem to save the yidin who are in ail, emotionly , pysiclly and spiritually
what do thry want already?!
omen, thank you
what ells do we have in goluse, we have nothing to looze
RIGHT NOW
Refuah Shleimo Ukrovavh
This is all fallout from the government raid on Agri: Both the defaults on the loans and the subsequent hounding and over-prosecution of the ‘easy targets’, the Jews in Iowa.
Bankrupt?!
The gov forcibly took over the company, then the GOV, forced it into bankruptcy, then the GOV, charges the son of the owner with the “losses” that the GOV, forced to happen. Now just add this one where they are charging the family to retrieve the value of the equipment that the GOV soled for pennies on the dollar.
let’s find out and have thousands of yidden NOT BANK THERE ANYMORE
first i felt mad but it is not our part to judge, When they die, let them get deakt with with their Creator, Hashem, Who are we to say, “They should get run over with a car….”???
I am with all of you, but take this as a warning, be careful how you do business!
Dido to number one
I will make this comment hoping that this has been done already, but just in case! have people spent money on forming a proper powerful set of a Bais Din Shell matto ? with the most powerful Rabbonim from around the world to form this Bais Din and to look at wrongs any big organisation might of done, then to see the verdict, If we truly believe, then lets the Rabbonim Hear us out if we believe a very serious offence has been committed, These Rabbonim will set up an agreement with the authorities’ that if the Rabbonim truly believe… Read more »
leave the rubashkins alone!!!!!!!
Dido to number one
This bank made improper real estate deals — That’s why they went down !! Why would they “need” $2 MILLION for a $300,000 Line of Credit ??!??
We should give them our tzeddakah and bail out this amazing family from financial disaster. I call on all yidden to stop giving tzeddakah to other institutions and fill the rubashkin coffer.
It will be yisron haoir min hachoishech!
bekarov!!
YOUR SERIOUS???? HASHEM YISHMOR
How can they do this to such a tzaddik?? They must hate jews…thats the only explanation. I think we should organize tehillim in all schools and raise the money for the rubashkins.
there are no words to express my anger against those guyim
That’s all i can say
I think we’ve get the point!! galus must be at the very end