Rubashkin arrested for bank fraud - KWWL - Eastern Iowa Breaking News, Weather, Closings

Rubashkin arrested for bank fraud

CEDAR RAPIDS (KWWL) -- Sholom Rubashkin has been arrested again, this time on charges of bank fraud.

Investigators say Rubashkin, the former CEO of Agriprocessors, diverted millions of dollars in customer payments in order to alter the vale of its accounts receivable. The criminal complaint alleges this gave Agriproccesors the ability to borrow additional money without the right collateral. It also says Rubashkin told an employee to delete evidence from the Agriprocessors computers the day after Rubashkin appeared in court on other charges.

Rubashkin was arrested on Oct. 30 on charges of conspiracy to harbor undocumented alens for profit, and aiding and abetting aggravated identity theft.

That day Rubashkin was released on conditions he wear a GPS ankle bracelet, limit his travel to the Northern District of Iowa, surrender his passport and his wife's passport, and provide a $1 million appearance bond with $500,000 to be secured.

Rubashkin's latest charges were allegedly done while he was out on bond, so the judge ordered Rubashkin to remain in custody until a detention hearing next Wednesday.

The bank fraud charges carry a maximum sentence of 30 years in prison plus a fine of upwards of a million dollars. If Rubashkin is convicted of bank fraud as well as the earlier charges, he could be looking at more than 50 years behind bars.


Online Producer: Jenn Jarvis

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