Workers plead not guilty to charges related to Postville raid
BY GRANT SCHULTE • gschulte@dmreg.com • September 25, 2008

Rapids, Ia. - Two human resources workers at Agriprocessors Inc. in Postville pleaded not guilty Wednesday to federal charges stemming from an alleged massive workplace fraud scheme that involved hundreds of illegal immigrants.

Laura Althouse and Karina Freund entered the pleas in U.S. District Court less than a month after their arrest on state and federal charges. The back-to-back hearings in Cedar Rapids each lasted less than five minutes.

Althouse, 38, has been charged with aiding and abetting document fraud, aiding and abetting aggravated identity theft, and conspiracy to harbor undocumented aliens. Freund, 29, faces one count of aiding and abetting the harboring of undocumented aliens.

Federal agents raided the kosher meat-processing plant in May in one of the largest single-site immigration busts in U.S. history. Authorities detained 389 illegal immigrant workers and processed them through mass court hearings in Waterloo. Plea agreements reached with most of the workers require them to cooperate with the government's ongoing investigation.

Rumors about a possible raid swirled through the plant several days before agents moved in, according to a federal complaint. Prosecutors allege that Althouse, of Postville, helped the illegal immigrant workers complete new applications with bogus identities one day before the bust. Althouse, who oversaw the company's payroll, allegedly knew that many of the employees were illegal and were reapplying under different names.

Prosecutors say Freund, of Fayette, helped many of the workers obtain false identification papers to work. Freund worked in the human resources department as a translator, according to the federal complaint.

Freund's attorney, Mark Brown of Cedar Rapids, said he was still researching the case and could not comment. Both women are scheduled to stand trial Nov. 17.

Althouse, if convicted, faces between two and 22 years in prison, a $750,000 fine, a $300 court surcharge and supervised release of up to 7 years. Freund would face a maximum five-year sentence, a $250,000 fine, a $100 surcharge and three years of supervised release.

Althouse, Freund and three plant managers also are charged with 9,311 child labor violations filed by the Iowa attorney general's office. The state case involves 32 underage workers who allegedly were allowed near hazardous chemicals and equipment.
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