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Postville, IA - Feds seek Rubashkin Life Insurance Policies |
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Postville, IA - Federal authorities are going after two life insurance policies held by the owner of Agriprocessors.
Court records allege the troubled Postville meatpacking company has been paying thousands of dollars each month for premiums on two $3 million insurance policies on Abraham Aaron Rubashkin's wife.
The U.S. Attorney's Office for the Northern District of Iowa filed actions against the two New York Life universal life insurance policies in Cedar Rapids Tuesday.
The cases were unsealed Wednesday, and authorities allege the policies were derived from unlawful activity and subject to forfeiture.
The policies were taken out in the summer of 2002 and have cash values of $497,960 and $252,270 as of October.
Together, Agriprocessors has paid $1.06 million for the policies, court records state.
According to an affidavit filed by a special agent with the U.S. Bureau of Immigration and Customs Enforcement, monthly premiums of $8,333 and $5,675 are paid out of an account at Citizens State Bank in the name of Abraham Rubashkin Insurance Trust. That account is replenished by checks written on one of the Agriprocessors bank accounts, court records state.
"The source of the funds that are deposited into (the) bank account ? each month is ultimately Agriprocessors," the ICE agent's affidavit states.
Abraham Rubashkin lives in Brooklyn, N.Y., where he owns a butcher shop and sells Agriprocessors products. Records said he is the "100 percent sole stockholder" of Agriprocessors.
The Agriprocessors plant in Postville was the scene of a May raid where 389 workers were detained for immigration-related charges.
The company, CEO Sholom Rubashkin and other supervisors and human resources workers have been charged in criminal court in connection with the raid.
Since the raid, the company has had to pay a higher base wage for workers, court records state.
Before May, the average hourly wage was less than $8 an hour, compared to rival meatpacking plants that pay over $10 an hour for the same work.
Court records allege Agriprocessors workers were able to end up with more take-home pay by claiming nonexistent spouses and children --- sometimes six or more --- in their withholding status.
"A review of the evidence and interviews with former employees of Agriprocessors revealed that many of these undocumented employees were claiming this high number of dependants despite the fact that they were single and/or only supporting one or two children," court records state.
An Agriprocessors accounting employee has testified before a federal grand jury that unidentified accountants told workers to claim more dependants on their W-4 forms so little or no federal withholding would be taken from their paychecks.
That way, the take-home pay and net wages would be closer to what was paid by other meatpackers.
Then many of the undocumented workers wouldn't file income tax returns or pay tax they would have owed because they risked discovery, according to court records.
Court records also outlined a 2005 scheme where Sholom Rubashkin sought help to build structures on chicken farms near Postville. The farms were for birds that would ultimately be harvested at the Agriprocessors plant.
One person involved in the project, identified as RR, told a grand jury that Sholom Rubashkin paid workers with checks from a corporation named Cottonballs LLC.
Some of the checks were made out to Garnavillo Gospel, which is a church where RR was a signing official, records state.
Checks from Agriprocessors were deposited into the Cottonballs account, and the money was then used to pay illegal workers for unloading chicken barns from trucks, records state.
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Read Comments (38) — Post Yours »
1
Nov 30, 2008 at 12:03 PM Anonymous Says:
leave the rubashkins alone. go after the terrorists that are killing innocent people.
2
Nov 30, 2008 at 12:06 PM Anonymous Says:
what constructive things is the government doing re terrorism?
did the un denounce the mumbai trrorists?
have either done anythng constructive re the palestinian terrorists?
leave the rubashkins alone.
go do something that will make a difference to the world!
3
Nov 30, 2008 at 12:11 PM Anonymous Says:
“ leave the rubashkins alone. go after the terrorists that are killing innocent people. ”
Well Said!! I agree 100%!!! Tell them to go after someone who is really guilty!!
4
Nov 30, 2008 at 12:26 PM Anonymous Says:
They are going after the LIFE of the Rubashkin's not their LIFE INSURANCE policies!
these terrorists in Indea were trained by the feds on may when the feds raided their plant and now took the Rubashkin's hostage!!!
The terror attack in indea was already the second terror attack on a chabad house the first one was in Iowa!!!
5
Nov 30, 2008 at 01:33 PM helprubashkins Says:
BS"D
6 million dollars of life insurance for the tzadekes and baalas chessed Mrs Rivka Rubashkin shetichye is a very small fraction of her true worth.
May she live to greet Moshiach as she welcomes the needy free of charge at her restaurant which occupies prime 13th Avenue real estate (and makes the location even more prime for klal Yisroel and beeinei Hashem than it would if an expensive boutique opened there).
6
Nov 30, 2008 at 12:58 PM esav sone l'yakov Says:
It is so obvious that the Government has a special interest in prosecuting the JEWISH Rubashkins!
Shame Shame USA!!!
Generations and generations have passed since the Church (worth billions) has made fortunes of these very same grey insurance policeis...
Noone said Boo!
When its a few Orthodox successful jews that they're trying (un)successfully to Grill for something 90% of corporate America would be found guilty of if put in the spotlight, they're bringing up all these irrelevant Charges!!
Shame Shame US!
The Government and all Financial big shots bankrupted this country and robbed us all blindly and instead of bringing justice to them, they're given positions in the government, to prosecute ppl who actually WORKED for a living, ppl who
Didn't rob others blindly!
Minimum wage and great taxes is what bankrupted all US companies that are crashing now, the Rubashkins were smarter and so were all other corporations that are still striving!!
For the first time I'd say the opposite of Michell:
I'm now embarrassed to be an American!
Shame Shame US!!
7
Nov 30, 2008 at 12:57 PM Anonymous Says:
What do the terrorists have to do with Rubashkin? I knew someone will try to deal the terrorist card from the bottom of the deck. This is the same as the 'attack on kosher meat' card and the 'anti'semite/PETA/union cards that have been dealt in the past months.
THere is a small minority of chareidim that will let this farce continue.They are trying to push their warped sense of values and Kashrus on the rest of us. If you do not like the rules of the US, then either have them changed LEGALLY, or get out of my country.
Get Rubashkin out of the meat business so that the Chillul Hashen stops, and you will have greater peace in the world.
8
Nov 30, 2008 at 01:47 PM Anonymous Says:
there is no crime in paying your policy from your business. just looking for really nothing
9
Nov 30, 2008 at 01:39 PM Anonymous Says:
Since when is claiming a high number of dependants a crime?
10
Nov 30, 2008 at 01:39 PM Anonymous Says:
Amen, amen. I'm not even Orthodox, and I can see the blatant anti-Semitism here.
11
Nov 30, 2008 at 02:28 PM murray Says:
“ Amen, amen. I'm not even Orthodox, and I can see the blatant anti-Semitism here. ”
The idea is to focus peoples attention away from the real issues like terrorism, and the terrible economy. First they need to paint Rubashkin as "Public Enemy #1", I fear we are going to see anti-semitism IN THIS COUNTRY on an unpresidented scale for scapegoating purposes.
12
Nov 30, 2008 at 03:21 PM East Coaster Says:
bunch of friggin hillbilly anti-semites
13
Nov 30, 2008 at 06:35 PM Anonymous Says:
“ What do the terrorists have to do with Rubashkin? I knew someone will try to deal the terrorist card from the bottom of the deck. This is the same as the 'attack on kosher meat' card and the 'anti'semite/PETA/union cards that have been dealt in the past months.
THere is a small minority of chareidim that will let this farce continue.They are trying to push their warped sense of values and Kashrus on the rest of us. If you do not like the rules of the US, then either have them changed LEGALLY, or get out of my country.
Get Rubashkin out of the meat business so that the Chillul Hashen stops, and you will have greater peace in the world. ”
I think number 7 is right. Terrorism has nothing to do with this discussion. With all due respect to the others, you may well be correct that anti-semitism is involved on the part of the feds investigating them, but there are laws in the United States that govern how businesses must conduct themselves, and you can ask a halachic shila about dina d'malchusa dina if you want. The problem of illegal alien workers will continue to be a big st'eera as long as Americans continue their love of cheap labor. Everyone knows that numerous businesses, like construction, landscaping, to name a few, would virtually shut down if they did not use illegals. It is not the use of the illegals per se that is really the alleged crime here (although it happened on a big enough scale for them to get caught), rather, other allegations of de-frauding the government. We have to be dan l'kaf zechus and assume for now the owners are innocent. But if they did defraud the IRS and other government agencies, and are found guilty, it will surely be a chilul Hashem and a sad day for klal Yisroel.
14
Nov 30, 2008 at 06:19 PM Anonymous Says:
“ Since when is claiming a high number of dependants a crime? ”
I know it's hard for you to believe, or maybe understand, but lying on a federal tax form - any one of them - is, in fact, a crime. According to Section 7205 of the Internal Revenue Code, any individual who files a false or fraudulent withholding form can be put in jail for up to 1 year and/or fined up to $1,000. It gets even more severe for other false returns. Are you just another individual who thinks the tax laws are either optional or just a joke?
15
Nov 30, 2008 at 06:09 PM Anonymous Says:
“ there is no crime in paying your policy from your business. just looking for really nothing ”
There isn't? Did you know that claiming a deduction for life insurance premiums is against the tax laws? But you probably don't file a return anyway. I suppose they just have the business make the payments but don't deduct them. In that case, the premiums would be taxable income to the individuals. So I suppose the family must be paying tax on that amount of income instead, right?
16
Nov 30, 2008 at 06:06 PM Anonymous Says:
i think the goverment is right the rubashkins need to be stopped
17
Nov 30, 2008 at 06:01 PM Anonymous Says:
Even if they were wrong, give agri a fine that would hurt and is liveable. We would not have to import meat from uruguay, iowa would have employment, the deds would make money via taxes and fines. Now they are getting nothing. My real hope is that the union gets exposed and get nailed like they deserve.
19
Nov 30, 2008 at 07:14 PM Jewish Princess Says:
What an absolutely disgusting thing to say, that the Jews killed in India were the result ofe the Rubashkins and that "the wrong people" were killed. Since when does anyone but Hashem decide "who shall live and who shall die??" And even if the Rubashkins broke laws, are they really worthy of death. Are you out of your freaking mind?? By the way, the kosher mashgichim killed at the Chabad house were not Chabad, but other Yiras Shamayim yidden. So what was their crime, guilt by association, because they happened to come to the Chabad House to daven in a minyan? I hear no love or Ahavas chinam with you....just a lot of sinas chinam.
20
Nov 30, 2008 at 07:14 PM Anonymous Says:
How can we expect Moshiach to come, to be able to talk like this in such a sorrowful tragedy. You mean to say bec. Rubashkins are criminals they should have been.... Oh My I can't believe there are such people around besides terrorists
21
Nov 30, 2008 at 07:06 PM Jewish Princess Says:
“ BS"D
6 million dollars of life insurance for the tzadekes and baalas chessed Mrs Rivka Rubashkin shetichye is a very small fraction of her true worth.
May she live to greet Moshiach as she welcomes the needy free of charge at her restaurant which occupies prime 13th Avenue real estate (and makes the location even more prime for klal Yisroel and beeinei Hashem than it would if an expensive boutique opened there). ”
AMEN!! May the matriarch of this great family only have nachas from her children, grandchildren, and great, great.....Anyone who feeds the poor for free has accomplished the highest level of mitzvah.
22
Nov 30, 2008 at 07:31 PM Anonymous Says:
“ There isn't? Did you know that claiming a deduction for life insurance premiums is against the tax laws? But you probably don't file a return anyway. I suppose they just have the business make the payments but don't deduct them. In that case, the premiums would be taxable income to the individuals. So I suppose the family must be paying tax on that amount of income instead, right? ”
I think an accoutant needs to answer this question - if the Life Insurance is to be used for the business as the beneficiary might be her husband who may at her death to divest his 100 percent ownership and use the proceeds to give the business to their many children or a cash buyout - at that time taxes will be paid....
23
Nov 30, 2008 at 08:50 PM mg Says:
The point here is, if the fed governmant decides to get you, they will screw you every wich way they can! Please be carefull, learn our countrys laws so you don't get in real trouble.
24
Nov 30, 2008 at 09:31 PM Anonymous Says:
Just keep in mind you know which posters are unios reps.
25
Nov 30, 2008 at 10:07 PM Anonymous Says:
Just a question:
taking out money for life insurance while people are not getting payed?
telling people to claim more dependents - court has to prove this statement.
but paying illigal workers via a different company IS illigal.
26
Nov 30, 2008 at 10:00 PM Anonymous Says:
The Achdus is already beginning to disintegrate. Yidden, we have gone to hell & back...do YOU want to continue the work of these Amaleks by attacking & destroying other Yidden with words? Keep your self-righteous negativity to yourself & remember it's our responsibility as Jews to keep our brothers & sisters from jail. IF the Rubashkins did wrong, there are other ways to punish...in fact, it's already been done, in advance of any trial let alone a guilty verdict. In the Court of Public Opinion, some of you have already convicted & sentenced them...to what, I wonder? Think about it.
27
Nov 30, 2008 at 10:51 PM Anonymous Says:
“ What do the terrorists have to do with Rubashkin? I knew someone will try to deal the terrorist card from the bottom of the deck. This is the same as the 'attack on kosher meat' card and the 'anti'semite/PETA/union cards that have been dealt in the past months.
THere is a small minority of chareidim that will let this farce continue.They are trying to push their warped sense of values and Kashrus on the rest of us. If you do not like the rules of the US, then either have them changed LEGALLY, or get out of my country.
Get Rubashkin out of the meat business so that the Chillul Hashen stops, and you will have greater peace in the world. ”
Don't be soooooooooooo quick to judge. I am not sure how old you are but if you are young then you still have lots to learn and if you are older in years but have not yet learned then I hope you come to understand- you really should not judge anyone until you are in their shoes. Also realize you are getting your info from the media and have not heard the Rubashkin's story. I am sorry to point out - but you do not seem to be looking for the good here and you are a bit too hasty in believing the negative. In light of what we have all suffered in the past week please I beg you in memory of the kedoshim who suffered the unthinkable try to find z'chusim rather than ch'v the opposite.
Moshiach NOW!!!!!!
28
Nov 30, 2008 at 11:21 PM Anonymous Says:
“ I know it's hard for you to believe, or maybe understand, but lying on a federal tax form - any one of them - is, in fact, a crime. According to Section 7205 of the Internal Revenue Code, any individual who files a false or fraudulent withholding form can be put in jail for up to 1 year and/or fined up to $1,000. It gets even more severe for other false returns. Are you just another individual who thinks the tax laws are either optional or just a joke? ”
Number 9 was correct, filing extra exceptions on a W2 is not a crime, not paying the taxes at the end of the year is. Since you sound like you know it all, go back and study the IRS rules.
29
Dec 01, 2008 at 02:18 AM Anonymous Says:
The chairman of Coca Cola makes 83 million a year with perks. If Aaron Rubashkin as 100% owner has a 3 million insurance policy, possibly in lieu of compensation, why is that illegal? Nowhere in the story does it say the money was deducted from taxable income. Nowhere on the story does it say that Rubashkin told workers to overstate their dependents.
"Court records also outlined a 2005 scheme..." What scheme? He paid day workers once for unloading the barks from trucks. If he had two different corporations, agri paid cottonballs, to deliver barns. Where does it say that Rubashkin owned cottonballs? All those that wish to lynch Rubashkin fail to afford him with his minimum rights. If you're such a rush to lynch Jews maybe should go to Pakistan. It seems they're training people just like you.
30
Dec 01, 2008 at 06:15 AM matzahlocal101 Says:
"The cases were unsealed Wednesday, and authorities allege the policies were derived from unlawful activity and subject to forfeiture." This suit should be filed AFTER Rubashkin is convicted of conducting "Illegal activity" By the same token, any money, cars, houses, clothes, that he bought with funds that he was paid by Agri would be subject to the same confiscation. However, the "illegal activity" is usually applied when the principle activity is illegal such as drug dealing prostitution or money laundering. When the principle activity is legal such as meat packing, the fact that he employed illegal aliens does not make meat packing an "unlawful activity". This is such a lynch job it's frightening. It's reminiscent of the "doctors pogrom" under Stalin.
31
Dec 01, 2008 at 06:03 AM Anonymous Says:
“ What an absolutely disgusting thing to say, that the Jews killed in India were the result ofe the Rubashkins and that "the wrong people" were killed. Since when does anyone but Hashem decide "who shall live and who shall die??" And even if the Rubashkins broke laws, are they really worthy of death. Are you out of your freaking mind?? By the way, the kosher mashgichim killed at the Chabad house were not Chabad, but other Yiras Shamayim yidden. So what was their crime, guilt by association, because they happened to come to the Chabad House to daven in a minyan? I hear no love or Ahavas chinam with you....just a lot of sinas chinam. ”
Who said that? Who made the connection?
You have just taken Motse Shem Rah to the next level. I may not like the Rubashkins because of the Chillul Hashem and Sinas Chinam that they caused, but your remarks are disgusting.
32
Dec 01, 2008 at 06:33 AM Anonymous Says:
“ The chairman of Coca Cola makes 83 million a year with perks. If Aaron Rubashkin as 100% owner has a 3 million insurance policy, possibly in lieu of compensation, why is that illegal? Nowhere in the story does it say the money was deducted from taxable income. Nowhere on the story does it say that Rubashkin told workers to overstate their dependents.
"Court records also outlined a 2005 scheme..." What scheme? He paid day workers once for unloading the barks from trucks. If he had two different corporations, agri paid cottonballs, to deliver barns. Where does it say that Rubashkin owned cottonballs? All those that wish to lynch Rubashkin fail to afford him with his minimum rights. If you're such a rush to lynch Jews maybe should go to Pakistan. It seems they're training people just like you. ”
The story says that the policy was issued for his WIFE, not an employee of the company.
If it was a perk, did he pay taxes on it? Every detail of his life is under scrutiny. He had better be squeeky clean.
33
Dec 01, 2008 at 06:29 AM Anonymous Says:
“ "The cases were unsealed Wednesday, and authorities allege the policies were derived from unlawful activity and subject to forfeiture." This suit should be filed AFTER Rubashkin is convicted of conducting "Illegal activity" By the same token, any money, cars, houses, clothes, that he bought with funds that he was paid by Agri would be subject to the same confiscation. However, the "illegal activity" is usually applied when the principle activity is illegal such as drug dealing prostitution or money laundering. When the principle activity is legal such as meat packing, the fact that he employed illegal aliens does not make meat packing an "unlawful activity". This is such a lynch job it's frightening. It's reminiscent of the "doctors pogrom" under Stalin. ”
The unlawful activities were the diverting of funds that were supposed to pay back bank loans.
Don't be an armchair lawyer. You have enough problems trying to be a Rubashkin apologist without taking on additional responsibilities.
34
Dec 01, 2008 at 08:25 AM Anonymous Says:
“ Who said that? Who made the connection?
You have just taken Motse Shem Rah to the next level. I may not like the Rubashkins because of the Chillul Hashem and Sinas Chinam that they caused, but your remarks are disgusting. ”
There was a terrible quote that was apparently deleted by VIN. The numbers do not reflect the deletion of the quote. Someone did relate the Rubashkin situation with the terrorist attacks and viewed as midah k'neged midah. For anyone to do this is wrong. We do not know why the Abishter allows certain things to happen and if these 2 events are at all connected. What appears to be real, is that the murdered Chabad shluchim were tzadikim and the stories being told about them put Chabad in the world's spotlight for it's good work.
The Rubashkin story is unfortunately an embarrassment to most frum Jews. While the Rubashkin's are not shluchim, they are Lubavitchers and it is an embarrassment to Chabad as well that illegal activities were occurring in a kosher meat plant. I do not feel that when frum Jews do government "shtick" that they are committing victimless crimes. The frum world pays heavily when we have a beefed-up (no pun on meat plant intended) gashmius lifestyle, payed for by crime. Those who are not in a position to deceive the government are the "poor losers" (in this world only) of the frum world who cannot throw money around. If all frum Jews lived by the law, the gashmius standard would certainly not be so unrealistic.
35
Dec 01, 2008 at 10:26 AM Anonymous Says:
W-4 is a form designed to make an estimate for proper income tax withholding. If one knows that he will have no tax liability at the end of the year he may claim 99 dependants to force the tax withholding estimate to zero or simply write exempt on the form.
It so happens to be that the form has been designed in such a way as to overestimate the tax so that the IRS gets a interest free loan from the employees throughout the year and in the case of those that don't file returns, illegal aliens etc. It's just a money grab.
For the rest of the mASSES, the government just looks so good because they send people checks in April every year
The US actually benefits when illegal aliens are paid on the books because the IRS collects Social Security taxes and medicare taxes at a rate of 7.65 %from the employee plus 7.65% from the employer from the first penny in wages paid. The USA will never pay SS benefits or medicare benefits to these people.
36
Dec 01, 2008 at 11:46 AM Anonymous Says:
“ Number 9 was correct, filing extra exceptions on a W2 is not a crime, not paying the taxes at the end of the year is. Since you sound like you know it all, go back and study the IRS rules. ”
You are a total idiot. First of all, why don't you actually read the section of the Internal Revenue Code that is mentioned. Also, anyone who knows the basics of tax law can tell you that not paying your taxes isn't a crime - but not filing, or filing a phony tax form, certainly is! If you don't pay, you face all kinds of civil enforcement actions. If you don't file, you can go to jail. For those of you who don't know (or understand), there is a difference between civil penalties and criminal penalties.
37
Dec 01, 2008 at 01:30 PM Bubby! Says:
“ What do the terrorists have to do with Rubashkin? I knew someone will try to deal the terrorist card from the bottom of the deck. This is the same as the 'attack on kosher meat' card and the 'anti'semite/PETA/union cards that have been dealt in the past months.
THere is a small minority of chareidim that will let this farce continue.They are trying to push their warped sense of values and Kashrus on the rest of us. If you do not like the rules of the US, then either have them changed LEGALLY, or get out of my country.
Get Rubashkin out of the meat business so that the Chillul Hashen stops, and you will have greater peace in the world. ”
The chillul Hash-m is not being caused by the Rubashkins! Enough already with the government apologists.
The amount of resources the government is allocating to prosecuting them is way out of proportion to the alleged crimes.
At least, you can acknowledge that no other similar violators have been treated as harshly.
May Hash-m give them the strength to hold on, and send them many, many brochos. Yeshuas Hash-m k'heref ayin.
38
Dec 01, 2008 at 06:39 PM also a bubby Says:
While I hope with all my heart that Sholom Rubashkin is found innocent of all charges, the government is prosecuting crimes that they believe are robbing US taxpayers of both money and jobs. To the government, protecting taxpayers' interests is a priority worth their resources.
Other violators may not have the same combination of charges. It is not only the illegal alien charge but several other charges as well. Each state has their own set of penalties and sometimes a judge wants to make an example of someone. There are many legal situations in which one violator walks "scott-free" and another whose crime appears identical or even a lesser crime, sits in jail for years. Such is the US legal system; it is risky to mess with it.
If there is any anti-semitism involved, it is because the government expected frum Jews to be honest, law abiding businessmen. Numerous halachas in the Torah, outline the honest business practices expected of us. If we Jews enjoy all the benefits of living in the US, should we not contribute equally as citizens?
39
Dec 02, 2008 at 07:53 AM Anonymous Says:
I have great difficulties with the Rubashkin apologists.
We say Aleinu three times a day. She'lo a'sa'nu k'go'yei Ha'a'ra'tzos.That Hashem did not make us like the goyim of other lands.
How do we translate this? We are not like everyone else. We are a light to the other nations. We are to be envied because we go 'linei meshuras hadin', beyond what is expected of us. We think tha there is antisemitism because the others are jealous of us.
Now we come to the Rubashkins. Clearly, they are not acting like the goyim, they are acting worse. Every step is being scrutinized by the government, because of their past history. The Rubashkn's behavior had made people say 'look at those Jews. Look at what they are trying to pull'. In Postville, the Rubashkin bahavioris the CAUSE of anti-semitism. Their behavior is the chillul Hashem that we abhor.
Now the apologists come and spin things aroung. We are now the people that are scrutinized. Are our maids legal? (I did not know that all Jews had maids or cleaning people). Everyone does it. Peta, the unions, the anti-semites, the left wing Rabbi, all are to blame, except for the Rubashkins. Employees cannot be paid, but Rubashkin's wife gets a life insurance policy paid with company funds, not private funds. Shochtim and mashgichim cannot bepaid, but the Rubashkin famly is still on the payroll. What is wrong with this picture?