Feds go after Rubashkin trademarks, property

By Lynda Waddington 12/11/08 5:37 PM

Federal authorities have upped the ante for Agriprocessors and four former members of plant management. Not only will the parties face the penalties originally outlined in a Nov. 21 indictment, but they may have to forfeit a host of items that have been defined as proceeds of criminal activity.

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.

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