Iowa City, Iowa – Cattle Sellers Paid by Agriprocessors Won’t Return the Money

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    Iowa City, Iowa – Hundreds of companies that were paid by a bankrupt kosher slaughterhouse last year have been told to give back much of the money they received 90 days before the bankruptcy announcement, (previously reported by VIN News).

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    The companies received the letter this week from the trustee for Agriprocessors, Inc., whose lawyer says the companies can negotiate their return payments.

    The slaughterhouse declared bankruptcy in November 2008, months after an immigration raid. Manager Sholom Rubashkin was convicted last month of 86 counts of financial fraud.

    Cattle sellers like Jeff Reed of the Central Livestock Association say they won’t return the money.

    The trustee’s attorney, Dan Childers, says the demand ensures Agriprocessors didn’t hide money with relatives or otherwise disguise its assets.


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    11 Comments
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    Anonymous
    Anonymous
    14 years ago

    I am not one that sees Rubashkin as a hero and perfect person but one thing is clear;
    If the law is the law all must obey, even these non -Jews. Seems as though outside NY only Jews must cmply or pend their life in jail.

    AuthenticSatmar
    AuthenticSatmar
    14 years ago

    “Cattle sellers like Jeff Reed of the Central Livestock Association say they won’t return the money. “

    And why isn’t Jeff Reed being charged with a crime?

    Anonymous
    Anonymous
    14 years ago

    good for them! keep the money in your pocket!

    Anonymous
    Anonymous
    14 years ago

    Can the money be repaid from the pidyom shvuyim fund??

    Anonymous
    Anonymous
    14 years ago

    The government breaks it own laws. LOL! They cite preferential payment to the cattle supplies, when the law indicates it

    What a joke these laws are, just highlight the absurdity of the charges against Rubashkin.

    Anonymous
    Anonymous
    14 years ago

    Cause in the end, the courts will most likely force him to. This is just talk, and I don’t blame him one bit.

    Shaul in Monsey
    Shaul in Monsey
    14 years ago

    It will be up to the trustee to utilize the court system to recover the money if they believe that AGRI gave any suppliers a preferred position within the time frame the statute defines (90 days?).

    You are all confusing two issues. One issue is whether or not AGRI paid their suppliers on time pursuant to an order. A jury found that they did not. A separate issue is whether or not AGRI gave preferential treatment to any of their suppliers including the livestock suppliers. Unlike other legal actions, the clock on a bankruptcy tolls prior to the filing to protect creditors from “friends and family” payments. In other words prior to a company filing a chapter 7, they can’t take their cash and pay themselves or their friends or, in this case, the suppliers they like, over other creditors. There is no contradiction of law here and the suggestions otherwise are unintelligent.

    Yitzchok
    Yitzchok
    14 years ago

    I really don;t get it. Didn’t the government try and convict the Rubaskin’s for not paying the cattle suppliers? so now they were paid and the government wants them to give it back? someone please explain!