Most Wanted: The Big, Bad Butchers and Bullies of Agriprocessors

In 2003, Balkany was detained on charges he misused $700,000 in HUD grant money intended for handicapped toddlers. Most of the money had been transferred by Balkany into bank accounts controlled by his children, including at least one in Israel. Balkany also used this grant money to pay his personal credit card bills and to pad his personal bank accounts.

In a deal with the US Attorney’s office, Balkany – who claimed his actions were sloppy accounting practices, not theft – agreed to make restitution and to refrain from seeking any more federal grants. He was never prosecuted.

Balkany has been implicated in other scandals involving government funds and is now barred from lobbying Bureau of Prisons officials after allegations of bribe-taking surfaced.

Balkany also tried to have a Jewish aide to then-US Senator Daniel Patrick Moynihan excommunicated after the aide wrote memos detailing Balkany’s strong-arm attempts to force the Israeli government to use US aid money for Balkany’s pet projects in Israel.

In an attempt to end Orthodox justice group Uri L’Tzedek’s boycott of Agriprocessors, while officially representing Agriprocessors and his father-in-law at a meeting in mid-June, Balkany reportedly threatened the Orthodox justice group’s leadership in a manner eerily reminiscent of Tony Soprano.

In 2002, Moshe Rubashkin was arrested for bank fraud. He pleaded guilty and served almost two years in Fort Dix Federal Prison. Just months after his release, Moshe Rubashkin was elected president of the Chabad-Lubavitch-controlled Crown Heights Jewish Community Council, which annually receives and administers millions of dollars in government funds.

Late last year, Moshe and his son Sholom (the nephew of Agriprocessors’ CEO/VP Sholom M. Rubashkin) were indicted on federal charges related to the family’s abandoned textile mill in Allentown, Pennsylvania, which burned in a series of suspicious fires. Although the family engaged in a convoluted cover up meant to hide ownership of the property and defraud the EPA and the city of Allentown, Moshe Rubashkin was only charged with illegal storage of hazardous waste. His son was charged with knowingly making a false statement to federal authorities. Both charges are felonies.

Originally due to be sentenced on July 16, the government agreed to postpone sentencing until November 3 to allow Moshe Rubashkin and his son more time to repay the $450,000 they owe the EPA. The rub? The money for this repayment appears to be coming from other Rubashkin family members who themselves draw their income from Agriprocessors and related companies, not from Moshe Rubashkin himself. When pressed, an official close to the case could not explain the need to allow Moshe Rubashkin and son to remain free to facilitate this repayment.

As I first reported in late 2004, on October 23, 2003, Agudath Israel officials, and, I’m told, Lewin, along with rabbis from various kosher supervisions, met with senior USDA staff in Washington. My sources tell me that Lewin did not disclose his connection to Agriprocessors.

The subject of that meeting was a USDA directive that outlawed “sawing” during religious slaughter. Agudath Israel claimed the directive’s current language could easily be misinterpreted by USDA inspectors and would, they feared, be used incorrectly to stop kosher slaughter. The USDA agreed to change the language and relied heavily on Agudath Israel – and, it seems, Nathan Lewin – to write a new directive. What made its way into that new directive? Approval of a second cut to “facilitate bleeding” – the basis for Agriprocessors’ meat hook throat-ripping exposed by PETA.

During the furor surrounding exposure of that throat-ripping, Lewin played the Holocaust card, comparing PETA to Nazis and alleging PETA’s true aim was to end shechita.

In the days immediately preceding the release of PETA’s undercover video, Lewin told a sympathetic reporter for the New York Sun that he, as Agriprocessors counsel, had offered to discuss with PETA and, if necessary, resolve any problems at Agriprocessors. PETA, Lewin claimed, never responded to him.

The actual letter Lewin sent to PETA – now posted on PETA’s website – shows that Lewin misrepresented the tone of his letter and that Lewin and Agriprocessors did not offer to meet PETA.

At the close of Agudath Israel’s national convention in November 2004, on the eve of the release of PETA’s exposé, Agudath Israel leader Rabbi Chaim David Zwiebel asked the convention for a unanimous vote condemning PETA and supporting Agriprocessors. He got that vote – even though no one voting except for Lewin had seen PETA’s evidence.

The USDA, in response to PETA’s video and other documentation, conducted its own investigation and found that Agriprocessors violated the Humane Slaughter Act. It also found its inspectors took illegal gifts from Agriprocessors and often slept or played computer games on the job. The USDA kept that decision secret for almost one year, while the US Attorney for Northern Iowa declined to prosecute. PETA forced release of the damning USDA findings by filing and actively pursuing Freedom of Information Act requests against the agency.

Like Lewin, Lubinsky played the Holocaust card, comparing PETA to Nazis and alleging PETA’s true aim was to end shechita.

Headed by CEO (and former Betar-USA head) Ronn Torossian and SVP Juda Engelmayer (owner of the Lower East Side icon Kossor’s Bialys), 5W was caught impersonating critics of Agriprocessors online. 5WPR at first denied the impersonations, and then blamed them on an unnamed “intern.” The problems for 5WPR multiplied when it became clear the “intern did it” excuse was not credible.

In the wake of the massive immigration raid that crippled it, Agriprocessors promised to comply with the law and to begin a new era of ethical business. Despite those promises, Agriprocessors continues to retain 5WPR.