Midamar, ISA Inc. make pleas in halal beef export scheme

Midamar and ISA Inc. entered guilty pleas Wednesday to conspiring to making false statements and falsifying USDA documents and export certificates for shipments of halal beef to Malaysia and Indonesia.

Yahya Nassar Aossey, director of Midamar, and Jalel Aossey, director and president of ISA, formerly Islamic Services of America, each entered guilty pleas in separate hearings on behalf of the companies to one count of the original 92-count indictment, stemming from the sale of halal beef products, which weren't slaughtered according to strict standards approved by Malaysia and Indonesia.

The companies' officers admitted during the hearings to conspiring to cover up material facts by a scheme; to make and use false statements and documents in a matter within the jurisdiction of the Department of Agriculture; to make false statements on export certificates with the intent to defraud; and to commit mail and wire fraud from 2007 and continuing into April 2012.

The companies face one to five years of probation and fine up to $500,000 or twice the gross gain of loss resulting from the offense. According to the plea agreement, each company will also face a fine. There are sentencing guidelines for the fine but U.S. District Chief Judge Linda Reade has discretion over the fines.

Each company also agreed to forfeit a minimum of $600,000, which are proceeds derived from the wire fraud charges in the indictment, according to the plea agreement.

Assistant U.S. Attorney Richard Murphy explained the companies, along with Yahya and Jalel Aossey, who will also plead on Friday, will be jointly liable for a total of a $600,000 forfeiture.

According to trial testimony, the brother's father, Midamar founder William Aossey, who was convicted in July, directed employees at Midamar to fabricate and falsify shipping records and change USDA establishment numbers identifying where the meat was slaughtered.

ISA certificates were also falsified, under William Aossey's direction, to make it appear as if beef products had been slaughtered at an approved facility for those two countries.

Jalel, 40, and Yahya, 44, Aossey, are charged with one count of conspiracy to make and use materially false statements and documents; sell misbranded meat; and commit wire fraud. Counts five through 47 they are charged with wire fraud, 48-91 with engaging in illegal international financial transactions and 92 is conspiracy to engage in illegal international financial transactions.

Plea agreements for the brothers haven't been filed yet.

Midamar founder William Aossey, 73, was convicted of one count of conspiracy to make false statements, sell misbranded meat and commit mail and wire fraud; seven counts of making or causing false statements to be made on export applications; seven counts of making or causing false statements to be made on export applications and seven counts of wire fraud.

Of the original 19 charges, he was acquitted of four money laundering charges.

William Aossey remains in jail pending sentencing, which hasn't been set at this time. He faces eight to 10 years and possibly more in prison, and the prosecution has asked the court to require him to forfeit $184,984 as proceeds from his offense.