Midamar founder Aossey to be sentenced next week

CEDAR RAPIDS - The founder of Midamar food company, previously convicted in a halal beef exporting scheme, will be sentenced Feb. 5 in federal court.

William Aossey Jr., 73, of Cedar Rapids, was convicted by a jury last year of one count of conspiracy to make false statements, the selling of misbranded meat and committing mail and wire fraud; seven counts of making or causing false statements on export applications; and seven counts of wire fraud.

The jury acquitted him of four money laundering charges.

Federal prosecutors initially said Aossey could face 8 to 10 years in prison, based on the guideline sentencing range but documents filed in December show he could face more prison time because of the amount of financial loss, the number of effected victims and his role in the export scheme.

The documents don't state how much time he could face if the offense level increases. The presentencing report recommends a 14-level increase in the offense level based on the loss amount of $740,213, which was paid to Midamar for 22 shipments going to Malaysia and Indonesia that contained meat products from a slaughter facility not approved by those countries for halal dietary requirements.

Based on the conduct and fraud involved the number of victims would be more than 10, Assistant U.S. Attorney Richard Murphy said in the document. A representative from a Muslim consumer group told prosecutors that Muslim consumers would consider this a serious matter and would expect and depend upon the packaging or labeling information from Midamar and Islamic Services of America, the body that certifies halal products for Midamar.

The presentencing report also recommends an offense level increase for Aossey's role as manager or supervisor at the time of the offenses.

Murphy points out in the document that Aossey testified at trial he 'requested and instructed” Midamar employees to re-box, re-label and ship beef to Malaysia. The labels were changed from the slaughter facility that was Midamar's supplier, which wasn't approved, to another facility, which was approved but not Midamar's supplier.

Prosecutors will also ask Aossey to pay $16,824 to the government for prosecution costs, which is allowed at the discretion of the judge; and a forfeiture of $184,984, which is proceeds from the wire fraud; as well as a 'substantial” fine, based on Aossey's ability to pay.

Aossey's lawyer will argue for no prison time based on the nature and circumstances of the offense and Aossey's personal history of helping the community as well as establishing and growing the business. According to sentencing documents, Aossey's lawyer will ask for probation.