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Sholom Rubashkin given 27 years for financial fraud, but escapes conviction on child labor abuses

Posted by Christopher Coen on June 22, 2010

An Iowa federal judge has announced a prison sentence of 27 years on financial fraud charges for Sholom Rubashkin, the 51-year-old Orthodox Jew and former manager of a kosher meatpacking plant, Agriprocessors, where ICE agents arrested hundreds of illegal immigrant workers in a 2008 raid that brought national scrutiny.

Rubashkin was earlier found guilty of 86 counts of financial fraud. Check out previous coverage here and here. (Ten other members of Agriprocessors management or office staff were also convicted on federal charges in the wake of the immigration raid. Two others, Hosam Amara and Zeev Levi, are believed to have fled the country to avoid prosecution and are considered fugitives.)

The judge noted that Mr. Rubashkin had misled the bank repeatedly about the finances of Agriprocessors, moving cash secretly in a shell game among different accounts, including some supposedly set aside for religious purposes, and ordered employees to create fake invoices. The sneaky actions caused a loss to the bank of $26 million, the judge said. The judge also ordered Mr. Rubashkin to pay almost $27 million in restitution to the financial institutions and businesses he defrauded.

On June 8 Mr. Rubashkin was acquitted of charges that he allowed minors to work at his plant. Mr. Rubashkin’s lawyers denied the charges, saying that his firing of minors was proof that he didn’t want to employ kids. They said minors who did work for the company only did so by tricking the company with false identification documents. As well, the minors who testified acknowledged that they had used false documents and lied about their ages to get a job.

But beef production manager Brent Beebe told the court that Mr. Rubashkin gave him $4,500 to buy false documents for the workers, and required the employees to pay the back these “loans”. Yet, according to jury foreman and Waterloo City Council member Quentin Hart, there never was any “clear line of communication” between Sholom about him knowing that the 26 were underage (What does that mean? No proof in writing?)

The almost impossible task before prosecutors in the child labor laws violations case was to prove that Mr. Rubashkin “willfully” violated child labor laws. Of coarse common sense would tell anyone that a CEO and co-vice president of a plant would know what was going on for months and years at his facility, but prosecutors had to produce specific proof of his culpability, a threshold they were unfortunately not able to reach. 

In the meantime, legislators unanimously voted to add more teeth to Iowa’s child labor statutes, and now the standard is negligence. Employers will now be responsibile for making a common-sense degree of inquiry into the age of their employees. All of that, however, is too late to help Mr. Rubashkin’s and his fellow miscreant’s Mexican and Guatemalan teenage victims.

It should also be noted that millions of dollars were raised and spent to defend Sholom Rubashkin. There was even a gold drive for Rubashkin, calling people to donate their gold for his defense fund. In the meantime the hundreds of exploited immigrant workers were left on their own to cover their legal fees.

The Hebrew Immigrant Aid Society (HIAS), supposedly a group whose mission is to defend immigrants, instead threw their concern behind Rubashkin while saying almost nothing about the dozens of teenage immigrants who reported extreme abuse at Rubashkin’s Agriprocessors slaughterhouse — having to work 80-90 hour weeks, working with dangerous substances such as dry ice and chemicals, having to use dangerous power-driven saws and scissors, being struck by managers, and sexually assaulted.

In HIAS’ President and CEO Gideon Aronoff’s May 22, 2008 essay, ‘Postville a clarion call’, he wrote, “we cannot ignore that American workers are unwilling to meet businesses’ labor needs at prevailing wages.” Prevailing wages? Wages effected by an influx of millions of undocumented workers willing to work for just a few dollars? This case brought to light that, in fact, many of the immigrant workers were earning below minimum wage at Agriprocessors. Who is Mr. Aronoff defending?

HIAS, in protecting their own — demanding that Rubashkin be treated “fairly” — while saying almost nothing about the abuses inflicted on the underage immigrants I think has lost all credibility as an agency that the U.S. public can feel comfortable entrusting vulnerable refugees to.

Posted in abuse, Guatemalan, HIAS, Iowa, Jewish, meatpacking industry | Tagged: , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

HIAS’ President and CEO Gideon Aronoff and the Postville, IA Agriprocessors Meatpacking Scandal

Posted by Christopher Coen on April 20, 2010

In regard to the Postville, Iowa Agriprocessors scandal, involving a series of the most egregious violations of child labor laws, abuse of underage immigrants, and repeated accusations of brutalization of cattle, Hebrew Immigrant Aid Society (HIAS) President and CEO Gideon Aronoff’s new focus on the case is that the former CEO of Agriprocessors, Sholom Rubashkin, be treated fairly (here). Never mind about the crimes. Said Mr. Aronoff:

“It is crucially important that the trial be conducted fairly, not benefiting him or treating him worse because of his Jewish faith. The same goes for the kosher meat industry.”

Gideon Aronoff

Rubashkin faces a possible life sentence on April 28 following his conviction last November on 86 counts of money laundering and mail, wire and bank fraud charges. Rubashkin, a Lubavitch Hasidic Jew, and several former Agriprocessors managers still face state charges involving 9,311 counts (yes, you read that right) of violating Iowa’s child labor laws.

Sholom Rubashkin

Aronoff’s previous focus was that any unfairness in this case came, not frfom the horrendous crimes on teenage workers, but from the government ICE raid on this despicable slaughterhouse business. Mr. Aronoff said the raid was unfair to the company, the workers, and the local community, and that Jews remembered similar raids on their community in WW2-era Europe. Again, never mind that the raid uncovered the extent of the crimes, and ended them.

Mr. Aronoff also tried to claim that companies have to hire immigrants because immigrants are the only ones who will accept low wages here (Agriprocessors’ starting wage was $6.15 for 12-16 hour shifts six days a week!).

We cannot condone the hiring of undocumented workers. But at the same time, we cannot ignore that American workers are unwilling to meet businesses’ labor needs at prevailing wages and there is no legal avenue for businesses to petition for the unskilled migrant workers they so desperately need.

Oh really? Is that the problem? Or is paying workers next-to-nothing associated with abusive and oppressive conditions?

Rarely during this scandal, and then only as a side-note, has Mr. Aronoff mentioned the real issues in Postville — the nightmarish working conditions for teenage immigrants and the extreme exploitation and inhumane (therefore nonkosher) slaughter of animals (confirmed in videotapes by undercover Orthodox Jewish members of PETA). These issues apparently are of little interest to the HIAS. Bear in mind that refugees all over the country are toiling away in meat-packing plants under similar or related conditions.

The May 2008 ICE raid found 57 under-age workers at Agriprocessors, some as young as 13. Investigators found multiple child labor law violations for each under-age worker at the plant, including employing minors in prohibited occupations, exposing them to hazardous chemicals, and making them work with prohibited tools like knives and saws to cut meat and poultry with little or no safety training. The young immigrants told investigators that they worked shifts of 12-17 hours, sometimes six nights a week (here and here).

One, a Guatemalan named Elmer L. who said he was 16 when he started working on the plant’s killing floors, said he worked 17-hour shifts, six days a week. In an affidavit, he said he was constantly tired and did not have time to do anything but work and sleep. “I was very sad,” he said, “and I felt like I was a slave.” 

The immigrant saw “a rabbi who was calling employees derogatory names and throwing meat at employees.” …In another episode, the informant said a floor supervisor had blindfolded an immigrant with duct tape. “The floor supervisor then took one of the meat hooks and hit the Guatemalan with it,”

Elmer L. said he had told floor supervisors that he was under 18.  

…“They asked me how old I was,” Elmer L. said. “They could see that sometimes I could not keep up with the work.” …Elmer L. said that he …was paid $7.25 an hour. He said he was not paid overtime consistently. “My work was very hard, because they didn’t give me my breaks, and I wasn’t getting very much sleep,” he said. “They told us they were going to call immigration if we complained.” 

Elmer L. said that he was clearing cow innards from the slaughter floor last Aug. 26 when a supervisor he described as a rabbi began yelling at him, then kicked him from behind. The blow caused a freshly-sharpened knife to fly up and cut his elbow.  

He was sent to a hospital where doctors closed the laceration with eight stitches. But he said that when he returned, his elbow still stinging, to ask for some time off, his supervisor ordered him back to work. 

The next day, as he was lifting a cow’s tongue, the stitches ruptured, Elmer L. said, and the wound bled again. He said he was given a bandage at the plant and sent back to work. The incident is confirmed in a worker’s injury report filed on Aug. 31, 2007, by Agriprocessors with the Iowa labor department.   

The company also distributed fake green cards to workers. Their PR hacks  impersonated a leading critic, Rabbi Morris Allen, on a blog. A son-in-law verbally threatened members of a socially conscious Ultra-Orthodox group during a meeting about conditions at the slaughterhouse, and another son-in-law entered into a plea bargain in a case in which he reportedly embezzled funds from an Orthodox Jewish Girl’s Day School (here).

Aside from HIAS’ obvious ethical blindness of the most important issues brought to light by this case of mass abuse of underage immigrants is the current outrageous focus of many in the fervently religious Jewish community (ultra-orthodox) on what type of prison accommodations Sholom Rubashkin, the former CEO of Agriprocessors, will get (here), while ignoring the crimes that brought about the possible long prison sentence.

Now that the 51-year-old father of 10 faces a possible life sentence…such a harsh penalty would make Rubashkin ineligible for a correctional facility that can accommodate Hasidic Jews. 

Out of about 250,000 federal inmates….only a few dozen are ultra-Orthodox adherents,…Most go …where the facilities can handle their special diets, group prayers and other religious needs. Those facilities, however, do not accept prisoners with long sentences. 

.Federal prisons tend to be more accommodating of religiously observant inmates than state and county facilities, and should be able to at least provide kosher food and allow him to maintain his traditional appearance, he said. 

This case shows the ethical myopia that results when people focus on their own pet immigration and refugee issues while ignoring the most basic mistreatment of those people by others in their own organization, group or extended communities.

Corruption and ethical abuses close to home are often the hardest type to face.

Posted in government, Guatemalan, HIAS, ICE, Iowa, Jewish, meatpacking industry, religion | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment »

 
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