Rubashkin's request to be released denied - KWWL - Eastern Iowa Breaking News, Weather, Closings

Rubashkin's request to be released denied

CEDAR RAPIDS (KWWL) -- A U.S. District Court judge denied Sholom Rubashkin's request to be released from custody.

He remains in the custody of federal agents.

A judge has ruled that Rubashkin should remain in federal custody after prosecutors argued he's a flight risk.

U.S. Magistrate Jon Scoles issued the order on Thursday, a day after a hearing was held for Sholom Rubashkin. He was arrested last week on bank fraud charges and had been released on $1 million bond.

Federal agents say that during a search of Rubashkin's bedroom, they found about $20,000 in cash and silver coins packed with passports in a travel bag.

Rubashkin was arrested last week 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 previously 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.

A trial hasn't been set on the bank fraud charge.

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