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October 30, 2008

Rubashkin son arrested, Agriprocessors fined $10 million in kosher slaughterhouse probe

http://www.jewishjournal.com/food/article/rubashkin_son_arrested_agriprocessors_fined_10_million_in_kosher_slaughterh

Firm founder Abraham Aaron Rubashkin

Firm founder Abraham Aaron Rubashkin

POSTVILLE, IOWA (JTA) -- The former manager of Agriprocessors was arrested today on charges related to the hiring of illegal workers.

Sholom Rubashkin, 49, was arrested by immigration officials and was due to appear in federal court later today.

Documents filed with the court allege that Rubashkin conspired to harbor illegal immigrants at the Agriprocessors meatpacking plant in Postville, Iowa. They further charge that he aided and abetted in the use of fake identification documents and identity theft.

Rubashkin is the highest-ranking Agriprocessors official to face criminal charges stemming from the May 12 federal immigration raid at the company's Postville meatpacking plant. More than one-third of the company's workforce was arrested.

According to the criminal complaint filed Thursday, Rubashkin provided funds that were used to purchase new identification for workers at Agriprocessors who were found to have bad papers. The complaint further alleges that Rubashkin asked a human resources officer to come in on a Sunday to process the new employment applications of several such workers.

Company representatives did not immediately respond to requests for comment. But Nathan Lewin, an attorney who represents Rubashkin's father and the company owner Aaron Rubashkin, dismissed the arrest as unnecessary and motivated by federal law enforcement's desire for good publicity.

"The arrest of Mr. Sholom Rubashkin today was a wholly unnecessary and gratuitous act by federal prosecutors apparently engaged in an unseemly competition with State of Iowa officials to capture headlines in a vendetta against Agriprocessors," Lewin said.

Rubashkin's arrest comes a day after Iowa Workforce Development announced it would levy nearly $10 million in fines against the company for alleged labor infractions.

In response to the action by the state labor agency, Agriprocessors CEO Bernard Feldman told The New York Times that he had "grave doubts as to the appropriateness of the claimed violations, and we also take issue with the intended sanction imposed per claim."

Iowa Workforce Development, the state's labor regulation agency, levied $9,988,200 in civil penalties against the kosher meat producer in Postville for four categories of infraction. The largest is for charging employees for frocks -- the regulation agency claims the company is guilty of more than 90,000 such incidents, assessed at $100 per infraction.

"Once again, Agriprocessors has demonstrated a complete disregard for Iowa law," said Dave Neil, the state's labor commissioner. "This continued course of violations is a black mark on Iowa's business community."

According to Iowa Workforce Development, the company has 30 days to contest the penalties in writing before they become finalized. The department has an additional wage investigation under way that could lead to further penalties.
The fines are the latest challenge to Agriprocessors, once the nation's largest producer of kosher meat before a massive federal immigration raid on May 12 resulted in the arrest of more than one-third of its workforce.

With its reputation taking a drubbing and concerns mounting that the company could lose its kosher certification, Agriprocessors hired a compliance officer and installed a new chief executive.

Company representatives did not immediately respond to JTA's request for comment.

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