More on Rubashkin's de facto Life Sentence

The Des Moines Register reports on the US Attorney's arguments supporting the 27 year sentence Sholom Rubashkin received for his financial fraud convictions.  Grant Schulte reports:

"Sholom Rubashkin deserves the prison time he received Tuesday in federal court, prosecutors said after a judge sentenced the former eastern Iowa meatpacking executive to 27 years. Bob Teig, a spokesman for the U.S. attorney's office, said the massive financial fraud scheme at Agriprocessors Inc. 'cries out for a sentence like this.'

Rubashkin, 50, was sentenced in U.S. District Court in Cedar Rapids and ordered to pay $27 million in restitution to banks and a cattle provider caught in the scheme.

Rubashkin was convicted of 86 fraud-related federal crimes in November, for his part in an effort to defraud the plant's lenders to collect advances on a loan. The plan collapsed after a May 2008 raid at the Postville plant that forced the owners to file for bankruptcy. Prosecutors, who have seldom spoke publicly since the immigration raid, said the fraud case ranked among the largest ever in Iowa's northern district.

'It is a lengthy sentence,' Teig said. 'But he earned a lengthy sentence. It's hard to get a 27-year sentence for a white-collar crime. It is very difficult.'  Teig said Rubashkin's crimes differed from other high-profile, white-collar cases with lesser sentences because of his actions. U.S. District Judge Linda Reade concluded in her ruling that Rubashkin led the fraud, involved others in the plot and lied at his trial. Teig said Rubashkin consistently refused to cooperate with authorities.

Assistant U.S Attorney Peter Deegan Jr., one of three prosecutors in the case, said financial crimes kept surfacing as investigators dug into the plant's books. Rubashkin's money laundering through a local school and grocery store hindered but did not stop the investigation, he said.

'You've got such a wide range of criminal activity here,' Deegan said. 'The case just kept building, and building, and building. Every time you turned over another rock, there was another crime being committed - and usually, it led to Sholom Rubashkin.'

Defense lawyers vowed to appeal, and railed against the sentence in a press conference with at least 100 of Rubashkin's Orthodox Jewish supporters Several in the group toted signs in front of the television cameras. One sign read: '27 years for overstating assets? That makes sense? OMG!'  'While this may appear to be the end of the case, it is not,' defense lawyer Guy Cook said. "It is indeed the beginning of the case. It's round one, if you will.'

Bob Barr, a former Georgia congressman who joined Rubashkin's legal team for the appeal, said the sentence was 'unjust, unnecessary, and unreasonable."

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I hear an animus in the expressions of the US prosecutors when they discuss Sholom Rubashkin's prosecution and de facto prison sentence that I find tragic. 

Here is a guy who committed financial crimes trying to keep open a religious foods business.  I know how awful it feels in business to struggle to keep the lights and phones on, the secretary working (without a proper paycheck), support my children, and do the right things without a proper stream of revenue.  I think it is error on the part of those gloating over the onerous judgment Rubashkin bears to think that Rubashkin was fully cognizant of all that the offenses he is said to have orchestrated.  In fact their slam dunk child labor charges which made their way into (and tainted?) the financial fraud trial--resulted in complete acquittals.

So, why is Sholom Rubashkin refused mercy in the harsh judgment of his prosecutors and this court? 

Sholom Rubashkin Sentenced to 27 Years

The Des Moines Register is reporting that the Kosher food processor, Sholom Rubashkin will be sentenced later today, to 27 years in prison for the financial offenses (i.e. he went too far in arranging loans to keep the family kosher food business afloat and) federal prosecutors demanded "life in prison."  The sentencing memorandum of local federal prosecutors caused an outcry among some of thisi country's leading former prosecutors including former Attorneys General (including: Janet Reno, William Barr, Richard Thornburgh, Edwin Meese III, Ramsey Clark and Nicholas Katzenbach) of the United States.  Since Mr. Ruabshkin is 51, the 27 year prison time gives the local federal prosecutors their wish. 

As reported on Bad Lawyer, Mr. Rubashkin's conviction is problematic, since the federal prosecutors were allowed to make assertions during his trial on the financial crimes about the "general lawlessness" of Mr. Rubashkin's business practices while Mr. Rubashkin was prevented from defending against various allegations includng child labor crimes he did not commit.  It may turn out that Mr. Rubashkin will obtain relief by way of a new trial or a Presidential pardon or commutation.  The New York Times, this morning did an excellent and thorough look at the inequitable treatment of Mr. Rubashkin vis-a-vis Jeffrey Skilling and Dennis Koslowski who received relatively reasonable and moderate sentences for financial offenses seemingly far more fraudulent and self-seeking than Mr. Rubashkin's misguided manipulations to obtain credit to keep his Kosher food processing business open.

I do not understand dietary laws, not the rhyme nor the reason for these laws apart from reading and respecting the Torah, the Talmud and the Zohar and the faith of pious religious believers.  I do know that observing and obeying dietary laws is very serious business among my Jewish and Islamic brothers and sisters who I regard as righteous.  Mr. Rubashkin's situation is Rubashkin's creation just the same as my problems are the product of seeds I planted.  I strongly empathize with him and his situation and I wish Mr. Rubashkin and his family nothing but blessings and light.  Out of great darkness sometimes there is an opportunity for great light.

Compare this story with what we talked about yesterday when Bad Lawyer looked at the story of fabulous wealth transfers, including billions of dollars that would normally be due the federal government under normal estate tax laws.  These amounts are dust in the wind because our lawmakers played political games with the federal taxing scheme.  Ultimately federal building projects, roads, buildings, maybe even court houses will be named after those law makers while Mr. Rubashkin who tried to keep a religious way of life operating, may still be sitting in a penitentiary.  I know these are unconnected matters, but we should not lose sight of the notion of genuine justice, particularly when it relates to the merely material world.

Remember Mr. Rubashkin? He's Innocent!

Remember Mr. Rubashkin (pic), the Des Moines, Iowa Kosher Foods businessman facing life in prison for financial fraud of various stripes which I blawged about in April?  The sentencing memo of the federal prosecutors demanded that the US District Judge overseeing his case throw the book at this lousy businessman who was trying to keep his family's longtime agribusiness open.  The recommended sentence was so shocking to the conscience that former leading law enforcement including attorneys general of the United States wrote Judge Linda R. Reade to object.

Part of the call for the life sentence of Mr. Rubashkin was the claim by federal prosecutors that Rubashkin, an Orthodox Jew, was a lawless man who tolerated wholesale violations of child labor laws in his agribusiness factory which employed many immigrants from Central America. The child labor charges were tried in the US District Court which concluded last week with Rubashkin's acquittal on 67 counts by the federal jury that deliberated 12 hours following a 5 week trial.  Mr. Rubashkin's counsel are arguing that the federal financial fraud convictions were tainted by smears during the prosecution of those charges that Rubashkin's attorneys were prevented from rebutting.

I told you in April why I identify with Mr. Rubashkin, the coverage at the Des Moines Register which includes a trial blog that makes compelling reading.

One of the most interesting remarks following Rubashkin's acquittal on the child labor charges comes from Rubashkin's son coming right from Torah and Talmud.  I'm paraphrasing, read the original at the link:  the financial verdicts are bad, but the allegations of crimes involving violations of child labor laws were more serious crimes against morality.   It is one thing to bear the self-knowledge that you are a bad business man and that this judgment is something you live with--it is quite another to be accused of exploiting children and others--particularly when you tried to do something righteous and consistent with your beliefs.

The evidence offered against Sholom Rubashkin was not credible. Consistent with trial testimony this was a troubled business man and the evidence demonstrated that he personally refused to hire minors.  Shalom,  Des Moines!

What Crimes Deserve Life In Prison?

Sholom Rubashkin (in the pic) is a guy I really relate to.  He is by admission a really lousy business man.  An article in the New York Times the other day about his situation shocked me and apparently has shocked the conscience of many former top U.S. law enforcement who have signed and mailed letters to the U.S. District Court judge handling Mr. Rubashkin's plea and sentencing.  US. prosecutors who are handling the case of Mr. Ruabshkin are recommending a life sentence for multiple counts of financial fraud relating to bank loans obtained by Rubashkin to try to prop up his failing family Kosher foods processor.  The following is an excerpt from Julia Preston's NYT article on Mr. Ruabshkin's case:

"Prosecutors, citing Mr. Rubashkin’s 'blatant lawlessness, utter lack of remorse, his egregious and repeated attempts to obstruct justice,' have asked Judge Linda R. Reade to impose a life sentence.

The proposed sentence startled legal experts around the country. In a letter written to Judge Reade on Monday, six former attorneys general, one former solicitor general and more than a dozen former United States attorneys criticized 'the government’s extreme sentencing position' and the 'potentially severe injustice' that could result.

The former Justice Department officials questioned the interpretation by Stephanie M. Rose, the United States attorney for the Northern District of Iowa, of the federal criminal sentencing guidelines that would apply to Mr. Rubashkin’s white-collar crime.

'We cannot fathom how truly sound and sensible sentencing rules could call for a life sentence — or anything close to it — for Mr. Rubashkin, a 51-year-old, first-time, nonviolent offender,' they wrote. The letter is signed by Janet Reno, William Barr, Richard Thornburgh, Edwin Meese III, Ramsey Clark and Nicholas Katzenbach, all of whom served as attorney general."
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Any follower of this blawg knows that I'm facing judgment for tax evasion, and I have agreed to enter a guilty plea.  I hope someday to be beyond the consequences of my blatantly careless acts and I am actively pursuing all steps I can to lessen the impact upon my children.  I am not seeking your sympathy, and I can certainly understand any contmept you feel for me as you judge my carelessness and incompetence as a businessman.  I freely admit that I wnated to be a trial lawyer and advocate--I did not want to be a businessman.  Likewise, I never intended to evade my tax obligations or cheat you, but I did.  I fell behind, I got scared, terrified, paralyzed.  I truly repent.  I repented a long time ago, but I could find no way back, no way out.  And even as I tried to bring my self into reporting compliance, it was too late.

My situation obviously makes me empathize with Mr. Rubashkin and really all business people who find themselves in over their heads, . . . and lost.  I suspect that many Bad attorneys, doctors, accountants, and other professionals are like me--they start out wanting to do good things with the skills or talents the creator gives them, but as in my case find themselves bogged down with business obligations never anticipated, and paralyzed by a lack of competence, planning or timely assets.  Do you really think Mr. Rubashkin who succeeded to his family's Kosher foods business wanted to commit crimes?  Ridiculous.  Did Mr. Rubashkin commit crimes.  Sure.  Apparently, repeatedly.  Should Rubashkin be punished?  Absoulutely.  Prison for life?  Have we lost our rational minds? 

God forbid you find yourself in financial trouble in life, because we have as-the-people enacted laws that are fantastically punitive.

Sholom Rubashkin Editorial at the NLJ

The National Law Journal has an editorial by Robert Steinbuch and Brett Tolman bringing us up to date on Sholom Rubashkin's case which I covered extensively here on Bad Lawyer. 

This terrific essay from a law professor, Steinbuch, and former US Attorney, Tolman, captures perfectly my sense of the personal tragedy, legal and moral injustice that occured with the incaceration on Mr. Rubashkin and the miscarriage of justice in a prosecution tainted by inflammatory immigration charges.  Charges Mr. Rubashkin was acquitted of by a federal jury.

This is a case, where I think President Obama should seriously consider exercising his remarkable prerogatives to right wrongs.

Shiloh Pastor Pleads to Theft of $1.2 Million From HUD Earmarks

The Lousiville Courier-Journal reports that long time Shiloh Baptist Church (pic),  Pastor, Rev. Henry M. Humphrey, 72, entered guilty pleas to 11 counts in an indictment against him, including conspiracy to defraud the government, soliciting kickbacks of federal funds, submitting false reports to HUD, wire fraud and conspiracy to launder money to the tune of $1.2 million dollars. 

This story moves me because the pastor involved was a long time preacher in Louisville and his father was a preacher before him.  I can't help thinking about Sholom Rubashkin, and, yes, myself.  How do we let money and our inability to put money in the proper place control and damage our lives?  In these cases, the lives and careers disgraced by manipulation related to money are for the most part lives and careers devoted to others.  I am sad.