Lawyers Seek Bail for Iowa Slaughterhouse Manager

A bail hearing for a former Iowa kosher slaughterhouse manager convicted of financial fraud turned testy Wednesday when a prosecutor accused the manager of lying in court.

The bail hearing in U.S. District Court in Cedar Rapids followed former Agriprocessors Inc. manager Sholom Rubashkin's conviction last week on 86 counts of financial fraud. Rubashkin's attorneys argued he should be allowed to remain free on bail until he's sentenced, and prosecutors claimed Rubashkin is a flight risk.

Assistant U.S. Attorney Peter Deegan said Rubashkin committed bank fraud when he was released on bail following his initial arrest in October 2008. The accusation sparked a heated exchange between Deegan and Rubashkin, who was on the witness stand.

"When you testified at trial, you didn't give truthful testimony, did you?" Deegan asked.

"I think you're lying under cross examination," Rubashkin responded.

Rubashkin faces a second trial on 72 immigration charges in Sioux Falls, S.D., on Dec. 2. The immigration and financial fraud charges stem from a massive immigration raid at the kosher slaughterhouse in Postville, Iowa, in which 389 illegal immigrants were arrested.

Judge Linda Reade said she will rule on Rubashkin's bail soon. A sentencing for his conviction on financial fraud charges has not been set.

During his trial, Rubashkin allegedly asked an employee to hand over a missing computer storage device that held financial information about diverted money hidden from a lender bank. When asked about the device, Rubashkin told Deegan several times, "I bet you have it."

Rubashkin is being held at the Woodbury County jail in Sioux City, Iowa. He has said he is innocent of all charges, and his attorneys have said they will appeal his conviction.

Wednesday's hearing was the third related to Rubashkin's bail. After he was released on bail following an initial set of criminal charges in October 2008, prosecutors allege Rubashkin tampered with evidence. He was arrested and jailed again, but Reade reversed a U.S. magistrate judge's ruling and freed him on bail in late January.