Friday, December 17, 2010
Postville, IA - Judge Orders Rubashkin Family to Pay $2M
Postville, IA - A judge has ordered members of the family that owned a kosher meatpacking plant in Iowa to pay more than $2 million after defaulting on financial agreements with one of their former banks.
A federal judge ruled Thursday in favor of the Federal Deposit Insurance Corp. and Value Recovery Group and against brothers Sholom and Tzvi Rubashkin (tee-AHTS’-vee Roo-BASH’-kin) and their father, Aaron.
The family owned the Agriprocessors plant in Postville, which was sold after a 2008 raid in which 389 illegal immigrants were detained.
The $2 million covers a $300,000 loan the Rubashkins received from Omni National Bank, interest on that loan and equipment leases with the bank. Omni sued to collect the money before it collapsed last year. FDIC was appointed its receiver.