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Judge orders ex-owners of kosher plant to pay $2M
Associated Press
Dec. 17, 2010 8:51 am
(AP) - A judge has ordered members of the family that owned a kosher meatpacking plant in Iowa to pay more than $2 million after defaulting on financial agreements with one of their former banks.
A federal judge ruled Thursday in favor of the Federal Deposit Insurance Corp. and Value Recovery Group and against brothers Sholom and Tzvi Rubashkin and their father, Aaron.
The family owned the Agriprocessors plant in Postville, which was sold after a 2008 raid in which 389 illegal immigrants were detained.
The $2 million covers a $300,000 loan the Rubashkins received from Omni National Bank, interest on that loan and equipment leases with the bank. Omni sued to collect the money before it collapsed last year. FDIC was appointed its receiver.
Workers leave the Agriprocessors meat packing plant in Postville after their shifts on Wednesday, Oct 29, 2008. (Liz Martin/The Gazette)

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