Last summer former Agriprocessors supervisor Martin de la Rosa-Loera pleaded guilty to aiding and abetting the harboring of undocumented immigrants. The 43 year old was sentenced on Tuesday to 23 months in prison, followed by two years of supervised release. Other top managers will face trial in September 2009.
In what I think is a somewhat surprising decision, Judge Linda Reade today agreed to release Sholom Rubashkin on a $500,000.00 bail pending his trial in September 2009. Reade granted the bail despite the prosecution's evidence that Rubashkin is alleged to have previously committed federal bank fraud while on release from arrest on prior immigration charges. The prosecution also argued against the granting of bail by pointing out that Rubashkin had made a trip to Canada almost immediately before the government brought the current charges against him. Finally, Reade granted Rubashkin's bail despite the fact that two former Agriprocessors managers are alleged to have already absconded to Israel. As to the terms of the bail:
Defense lawyers offered to have a private security firm use cameras and around-the-clock guards to confine Rubashkin to his Postville home. But Judge Reade did not require house arrest. She ordered that Rubashkin remain in Allamakee County unless he receives special permission to travel elsewhere. She also ordered that he have no contact with any potential witnesses in the case, and that he stay away from Agriprocessors.
The federal prosecutors will have until Thursday morning to decide whether or not to appeal Reade's decision to the 8th Circuit Court of Appeals. The full text of the Register's article can be found here.
Sholom Rubashkin appeared yesterday in court before Linda Reade, the chief federal judge for the northern district of Iowa. During the hearing that began yesterday and is expected to conclude today, Rubashkin's defense team asked Judge Reade to overturn a decision made by a magistrate last fall to deny Rubashkin bail. Rubashkin has been in jail since Nov. 14, following the worksite immigration-related enforcement raid which occurred in Postville, Iowa, on May 12, 2008.
This article in yesterday's Des Moines Register does an excellent job of highlighting some of the hearing's more interesting moments. Notably, prosecutors confirmed that two other former Agriprocessors managers are believed to have fled to Israel instead of facing charges in the United States. Count 12 of the superseding indictment filed on January 15, 2009, reveals that one of these former managers is believed to be Hosam Amara. The Register article also notes that Amara is alleged to have repeatedly contacted people in northeast Iowa from his location abroad. Concern over Rubashkin's potential flight to Israel is what caused the magistrate last fall to deny Rubashkin bail. As I mentioned earlier, Rubashkin's bail hearing is expected to conclude today, and I'll update this post once Judge Reade has ruled on the matter.
Also, as I mentioned in passing, on January 15, 2009, the grand jury filed a superseding indictment against defendants Agriprocessors, Inc., Sholom Rubashkin, Brent Beebe, Hosam Amara, and Zeev Levi. The 99 count indictment alleges that the defendants committed some or all of the following crimes: conspiracy to harbor undocumented aliens for profit, harboring and aiding and abetting the harboring of undocumented aliens for profit, conspiracy to commit document fraud, aiding and abetting document fraud, aiding and abetting aggravated identity theft, unlawful flight to avoid prosecution, bank fraud, false statements and reports to a bank, money laundering and aiding and abetting, and finally, willful violation of an order of the Secretary of Agriculture and aiding and abetting the same. The full text of the superseding indictment can be found here.
As we all know, Immigration & Customs Enforcement (ICE) raided the Agriprocessors kosher slaughterhouse in Postville, IA, in May 2008 and in the process arrested 389 allegedly undocumented workers. Since that time details have emerged concerning the alleged criminal and immigration violations commited by the Agriprocessors' mid and upper level leadership. Employees being targeted include the former CEO Sholom Rubashkin, former operations manager Brent Beebe and former human resources employee Karina Freund. Two other former Agriprocessor supervisors have been indicted but are currently on the lam. For various practice-related reasons I've made the editorial decision to largely stay away from this story, but I think it's time to now dive in as the pleas come rolling in and the trial dates move closer and closer.
With indictments being brought against mid level HR employees and supervisors, this case serves as a perfect example of the treacherous web of immigration-related liability that can spread throughout a company. As an HR employee or a supervisor of any level of a company operating with a high-risk workforce, you're simply deluding yourself if you believe that federal authorities are only interested in prosecuting the Big Bosses and CEO Muckety Mucks.
To recap, the charges to date against the Agriprocessor workers include: conspiracy to harbor undocumented workers for profit, harboring and aiding and abetting document fraud, aiding and abetting aggravated identity theft and bank fraud.
In order to prove the conspiracy to harbor undocumented workers charge, the government will have to prove the following: 1) an agreement with at least one other person; 2) the harboring of at least one unauthorized alien; and 3) simply one act furthering the goal of the conspiracy. The maximum period of imprisonment is 10 years, while the maximum fine on this charge is the greater of $250,000.00 or 2x the financial gain achieved through the conspiracy.
As for the aiding and abetting aggravated identity theft charge, the government will have to provide proof of the knowing transfer, possession or use of a means of personal identification of another without lawful authority during the commission of specified felonies, including false presentation of citizenship, fraud, etc.
Presumably none of these charges will be an easy lift for the government, but I think it's safe to say that the discovery process will shed some light on the direction this trial is headed. Both sides are currently combing through an abundance of documents, including: all Agriprocessors' personnel office files, 10 binders containing I-9 forms, 12 binders of grand jury testimony, electronic discovery that would equal 100 banker boxes if in paper form and at least 10 boxes of records on the bank fraud charges. As a slightly modified version of the saying goes, the proof will likely be in the paper.
Today news sources are telling us to expect Karina Freund, the former HR employee, to plead guilty. Originally she was chaged with conspiracy to harbor undocumented immigrants and haboring, aiding and abetting the harboring of undocumenteds for profit. I'll keep you posted on the specifics of Freund's plea, but I'm willing to bet we see some limited leniency from the government toward Freund in exchange for Freund's cooperation with the ongoing investigation and subsequent prosecution.
As for the remaining defendants, U.S. District Chief Judge Linda Reade has indicated that the trial will start Sept. 14, 2009. With that said, the prosecuting U.S. Attorney, Peter Deegan, has recently intimated that the investigation is ongoing and that there will likely be a superseding indictment with additional charges filed in January 2009.
Whether you're an immigration lawyer, criminal lawyer, human resources employee or manager of any level, this impending litigation will serve as a case study in the potential modern day pratfalls and liabilities involved with the combination of an employment environment and a high-risk workforce. Stay tuned...
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