Defense attorneys for Sholom Rubashkin, former day-to-day executive at Agriprocessors, had argued that pretrial publicity prevent their client from receiving a fair hearing in Iowa. The original call for a change of venue was joined by Brent Beebe, a former plant supervisor, and the company itself. In documents filed with the court, however, U.S. District Court Chief Judge Linda R. Reade disagreed.

“The issue before the court is not, however, whether Defendants Rubashkin and Agriprocessors have received ‘bad press’ from persons in high places. As counsel for Defendant Rubashkin pointed out at the Hearing, the issue is simply whether Defendants Rubashkin and Agriprocessors will be able to receive a fair trial in the Northern District of Iowa,” Reade wrote.

“At present, the impact of Governor [Chet] Culver’s guest column, as well as the other media articles and items Defendant Rubashkin presented to the court at the Hearing, is unclear.”

Reade stated that “the bad press was at its zenith” in the days and months immediately following the May 2008 immigration raid at Agriprocessors and has declined since that time. Because the trial is not scheduled to begin until September 2009, Reade felt any media influence would continue to deteriorate.

“Defendants Rubashkin and Agriprocessors also appear to place too much emphasis on the role of the print media in society,” she wrote.

“It would be irresponsible for the court to categorically impute the vitriolic comments of those who post comments in online newspapers and on other websites to the jury pool. The court has no way to know whether most of the comments on the Internet are written by potential jurors as opposed to minors, non-residents or other persons unable to serve on the jury.”

Despite denying the motion, Reade did leave the door open for defense attorneys to renew the request “following voir dire,” or jury selection. The court, she wrote, has reserved four days for voir dire instead of the usual half-day. In addition, parties affiliated with the case pool their resources and concerns to craft a potential juror questionnaire. The court is also open to pulling potential jurors from a larger geographic area and requesting a larger pool of potential jurors.

Earlier this month Reade also rejected the attorneys’ request to drop all charges based on antisemitism.

The May 2008 immigration raid at Agriprocessors resulted in the detention of 389 plant workers, or nearly a third of the plant’s workforce. Most were quickly charges with criminal offenses, tried and sentenced. The plant, which is in Chapter 11 bankruptcy, is currently operating under the preview of a bankruptcy trustee and with only limited poultry production. Bankruptcy sale is scheduled for May 23.

The modified indictment, which was filed today in federal court in Cedar Rapids, specifies that the Agriprocessors, Inc. corporate name, trademarks and corporate stock are subject to forfeiture. The trademarks would include such well-known brands as Iowa Best Beef, Shor Habor, Aaron’s Best and Rubashkin.

Sholom M. Rubashkin, son of company founder A. Aaron Rubashkin and a former chief executive at the Postville plant, remains in federal custody pending trial in this case and others. He is charged with various immigration and bank fraud-related charges.

Brent Beebe, Hosam Amara, and Zeev Levi, all former members of plant management, also face immigration-related charges. Amara and Levi fled the jurisdiction after a May 12 immigration raid at the plant and are currently been sought by Immigration and Customs Enforcement.

Human resources employee Karina Pilar Freund signed a plea agreement yesterday while admitting to one misdemeanor count of aiding and abetting a pattern or practice of hiring undocumented aliens. The charges she previously faced as a part of the November indictment have been dropped.

Federal authorities allege in the complaint that the company name, trademark and stocks were proceeds of the believed offenses of harboring undocumented aliens for profit and conspiracy to harbor undocumented aliens for profit. In addition, the modified complaint also seeks the forfeiture of all property used to facilitate the alleged offenses.

Agriprocessors has filed for Chapter 11 bankruptcy. It is unclear how this move by the U.S. Attorney’s Office for the Northern District of Iowa will affect the bankruptcy or the claims of numerous creditors. In addition, the plant in Postville, which briefly ceased production following Sholom Rubashkin’s arrest and detention, has resumed limited poultry production as bankruptcy trustee Joseph Sarachek negotiates with potential buyers. It is not publicly known if Sarachek’s negotiations have involved the facilities, corporate name and trademarks the government is seeking.

Hosam Amara, left, and Zeev Levi are former members of the management team at Agriprocessors. Both men are believed to have fled the jurisdiction following the massive May 12 immigration raid at the plant and are wanted by federal authorities. They are two of the five members of management indicted by grand jury.

The U.S. Attorney’s Office for the Northern District of Iowa unsealed new charges against Agriprocessors and five members of the meatpacking company’s management team today. The charges, ranging from immigration-related offenses to bank fraud, are included in a 12-count indictment.

Members of management named in the indictment are former Agriprocessors Chief Executive Sholom M. Rubashkin, 49; plant Operations Manager Brent Beebe, 51; former plant Poultry Manager Hosam Amara, 44; former plant Poultry Manager Zeev Levi; and former plant human resources employee Karina Freund, 29.

Charges from the indictment are as follows:

• Agriprocessors, Inc. — conspiracy to harbor undocumented aliens for profit, harboring undocumented aliens for profit, conspiracy to commit document fraud, aiding and abetting document fraud, six counts of aiding and abetting aggravated identity theft, and two counts of bank fraud
• Rubashkin — conspiracy to harbor undocumented aliens for profit, harboring undocumented aliens for profit, conspiracy to commit document fraud, aiding and abetting document fraud, six counts of aiding and abetting aggravated identity theft, and two counts of bank fraud
• Beebe — conspiracy to harbor undocumented aliens for profit, harboring undocumented aliens for profit, conspiracy to commit document fraud, aiding and abetting document fraud, and six counts of aiding and abetting aggravated identity theft
• Amara — conspiracy to harbor undocumented aliens for profit, harboring undocumented aliens for profit, conspiracy to commit document fraud, and aiding and abetting document fraud
• Levi — conspiracy to harbor undocumented aliens for profit, harboring undocumented aliens for profit, conspiracy to commit document fraud, and aiding and abetting document fraud
• Freund — conspiracy to harbor undocumented aliens for profit and harboring undocumented aliens for profit (The harboring charge is restated from a prior indictment, but the conspiracy to harbor charge is new.)

Beebe was arrested without incident at approximately noon at the Agriprocessors plant in Postville by Immigration and Customs Enforcement agents and the U.S. Marshals Service. He is slated to appear this afternoon in federal court in Cedar Rapids for an initial appearance and arraignment.

Rubashkin, who learned yesterday that he would remain in federal custody until trial on a different charge, is already being held in the Dubuque County Jail. Freund was released on conditions including electronic monitoring.

Federal authorities continue to search for Amara and Levi, both believed to have fled the jurisdiction shortly after the massive May 12 immigration raid at the kosher meatpacking plant. Iowa Independent was the first news outlet to report that Amara was believed to have fled. Those with information regarding Amara’s or Levi’s whereabouts are encouraged to contact ICE at (866) 347-2423.

Arraignments for Agriprocessors, Rubashkin and Freund have been scheduled for Nov. 26. In addition, Rubashkin and Freund already had a trial on other charges related to Agriprocessors slated for Jan. 20, 2009.

The Indictment

The week prior to the immigration raid, according to court documents, then Agriprocessors CEO Rubashkin loaned $4,500 to employees known to have fraudulent identification documents. Allegedly, Beebe then gave the money to the undocumented employees so that they could purchase new fraudulent alien resident cards. An Agriprocessors foreman, yet unnamed in court documents, arranged the purchase of the documents and Rubashkin allegedly asked human resources employees at the plant to work on Sunday, May 11, to complete all the new paperwork for several employees. The indictment states that Beebe was present that afternoon and assisted with the paperwork.

The indictment handed down yesterday by the grand jury relies heavily on the testimony provided by former Agriprocessors employees Martin De La Rosa, Juan Carlos Guerrero-Espinoza and Laura Althouse – all of which have been in federal court on their own immigration-related charges – to make the conspiracy, harboring and document fraud charges.

Previous court documents have indicated that 96 fraudulent alien resident cards and application paperwork were seized from the Agriprocessors human resources office on the day of the raid. Approximately 90 of the cards had numbers that were assigned to other people.

The bank fraud charges listed in the indictment stem from an incident on Feb. 29 in which Rubashkin, on behalf of the company, made a false certification to a lending bank that Agriprocessors was operating in a law-abiding manner, despite his having prior knowledge that numerous undocumented workers were employed at the plant. In addition, the indictment discusses Rubashkin’s alleged actions in September 2008 to divert customer payments away from a lender’s account, in order to enhance the Agriprocessors bottom line and pull additional funds from an existing line of credit tied to the customer payments.

“Beginning on a date unknown to the grand jury and continuing through about October 2008, in the Northern District of Iowa and elsewhere, defendants Agriprocessors and Sholom Rubashkin knowingly executed, and attempted to execute, a scheme to obtain funds under the control of First Bank and FBBC by means of fraudulent pretenses, representations and promises.

“… Rubashkin, on behalf of defendant Agriprocessors, and contrary to the terms of the loan agreement, diverted customer payments on accounts receivable. Defendant Rubashkin then hid from FBBC the fact that the customer payments had been received by, among other things, causing defendant Agriprocessors’ books to inaccurately reflect that no such payments had been received. By doing this, defendant Rubashkin cased defendant Agriprocessors’ books to inaccurately reflect that customers owed inflated amounts of money on their accounts. … Eventually, and in order to hide this portion of the scheme, defendant Rubashkin caused checks of Agriprocessors and third party entites he controlled to be drafted payable to defendant Agriprocessors and then presented to FBBC in such a way that they fraudulently appeared to be from a customer.”

The Penalties

The company faces numerous fines in conjunction with the charges. On five charges — the conspiracy to harbor, the harboring, the conspiracy to commit document fraud, the aiding and abetting document fraud, and aiding and abetting document fraud -– the company faces a fine of the greater of $500,000 or twice the pecuniary gain from the offense. Since the company was charged with six counts of aiding and abetting aggravated identity theft, the company faces the fine on each count. In addition, the company faces a fine of the greater of $1 million or twice the loss caused in relation to the bank fraud charges.

The individuals also face hefty fines for their alleged wrongdoings. The individuals, unlike the company, however, also face prison time.

The possible maximum penalty on charges of conspiracy to harbor is 10 years in prison, a $250,000 fine and three years of supervised release. Charges of harboring and aiding and abetting document fraud carry the same possible maximum sentence. Conspiracy to commit document fraud carries a possible maximum five years in prison, a $250,000 fine and three years of supervised release. Aiding and abetting aggravated identity theft carries a mandatory consecutive two years imprisonment, a $250,000 fine and one year of supervised release.