Midamar, a US Halal Beef Supplier Vows To Contest Fraud Charges

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U.S. government agents from the Internal Revenue Service and Department of Agriculture raided the offices of the Midamar Corporation, a major producer of halal foods (food prepared according to Islamic law), on October 17 in Cedar Rapids, Iowa.
U.S. government agents from the Internal Revenue Service and Department of Agriculture raided the offices of the Midamar Corporation, a major producer of halal foods (food prepared according to Islamic law), on October 17 , 2012 in Cedar Rapids, Iowa.

A food supplier falsely marketed beef to Muslims around the world for years as meeting strict halal standards, exporting products that weren’t slaughtered in accordance with Islamic law, federal prosecutors allege in a lengthy fraud indictment.

Midamar Corp., based in Cedar Rapids, Iowa, denies the allegations that it sold at least $4.9 million in beef to customers in Malaysia, Kuwait, United Arab Emirates and elsewhere that did not follow the halal practices promised in its labeling and advertising.

Midamar and its directors, brothers Jalel and Yahya “Bill” Aossey, are charged with conspiring to make and use false statements and documents, sell misbranded meat and commit mail and wire fraud. Also indicted is another company the brothers operate, Islamic Services of America – one of the few organizations approved by Malaysia, Indonesia, Kuwait, Saudi Arabia and UAE to certify beef for import into their countries. The defendants are charged with 91 other counts of making false statements on export certificates, wire fraud and money laundering.

The brothers, ages 40 and 44, entered not guilty pleas to the charges and were released following an arraignment Monday at the federal courthouse in Cedar Rapids. Their father, Midamar founder William Aossey Jr., 73, pleaded not guilty to similar charges last week and watched Monday’s hearing with a company banker.

Attorney Michael Lahammer, who entered not guilty pleas on behalf of the corporations, said Midamar stands by its “stellar record” of delivering and exporting quality products for 40 years and would contest the charges.

He said the company believed it had fixed labeling infractions uncovered by inspectors in 2010, and would challenge the allegations of halal fraud on the grounds that they violate the U.S. constitution’s separation of church and state.

“The government has no right to regulate what is a religious matter,” he said.

Midamar, which remains in business, said in a statement that its slaughter methods have been vetted by halal auditors for decades.

“The allegations of halal fraud are due to a `one size fits all’ approach taken by the government authorities,” the company said.

Islamic Services of America said that it won’t allow “allegations, implications or inferences of any improprieties” to affect its operations. The companies are based at the same location and collectively have about 80 employees.

The indictment alleges the companies repeatedly gave the false impression that beef products complied with import and United States Department of Agriculture requirements.

Midamar and Islamic Services of America told customers its cattle were slaughtered by hand by specially-trained Muslim slaughtermen who always recited prayer, the indictment alleges. Midamar also advertised that it did not use penetrative captive bolt stunning, a process commonly used in meatpacking in which an animal is killed when a steel rod is shot into its brain.

But Midamar’s primary beef supplier was a Windom, Minnesota, meatpacking plant that used bolt stunning to ensure all cattle slaughtered “were rendered senseless and were dead,” the indictment alleges. The plant, which wasn’t certified for export to Indonesia and Malaysia, often did not have Muslim slaughtermen present and didn’t recite the “Tasmia” prayer, the indictment says.

After the orders arrived in Cedar Rapids, employees removed federally-required labels showing the beef came from that plant with acetone or nail polish remover, the indictment says. Employees allegedly then put on fraudulent labels indicating the meat came from an Omaha plant that was certified to export to Malaysia and Indonesia. Midamar allegedly included the false representations about the source on export forms and certificates presented to and approved by the U.S. Department of Agriculture.

Syed Rasheeduddin Ahmed, president of the Muslim Consumer Group for Food Products, said many Muslims are apprehensive about meat products that claim to meet halal standards.

“This indictment will add to their suspicion,” he said. “Where can we buy? Which one is halal?”

 

 

Associated Press

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35 responses to “Midamar, a US Halal Beef Supplier Vows To Contest Fraud Charges”

  1. “Where can we buy? Which one is halal?” Good question.
    Pretty soon some companies will be offering halal fish and ‘Halal’ pork if left unchecked. Now we know where Lebanese health minister Wael Abu Faour got his ideas from. He has reportedly been shutting down many slaughter houses in Lebanon for non compliance with ‘Halal’ methods.
    I am pretty sure ‘Kosher’ consumers will be asking the same questions

    1. 5thDrawer Avatar

      Crazy, isn’t it?? In either case.
      The FIRST concern should be that the product is safe to eat and won’t kill anyone, second that the animals are slaughtered in the most humane way. In THIS, however, the Huge Concern is that somebody said a prayer over the process while cutting throats, which wouldn’t help anyone if the meat is contaminated.
      Maybe they can use a Jewish Slaughterhouse – I’m sure the prayers could be said by two guys at the same time, it’s just business, and as we know, everyone trusts Kosher. :-)))))
      Sell it as a ‘Blended Godly Experience’. :-)))))))))

      “Tasmia” prayer ..?? I didn’t know Tasmania was Muslim. :-))))))

      1. I think in this case the issue is not about compliance with halal as much as about telling the truth. The fact that the company is allegedly trying to mislead the customer by ” removing the “federally-required labels” and replacing them with ” fraudulent labels” is the key issue. USDA as a rule does not get involved in the mechanics of religious halal certification of the product as long as that does not conflict with USDA grading certification. USDA’s main concern is compliance with its own regulations and import requirement at destination.
        Tasmia prayer is the phrase that the Islamic representative should recite during the slaughtering of the animal.
        Hope this helps

        1. 5thDrawer Avatar

          Thanks 🙂

        2. MekensehParty Avatar
          MekensehParty

          I’m sure 5th was joking Arzatna 😉
          After all he does a tasmia prayer every time he pours a scotch lol

          1. 5thDrawer Avatar

            Shhhh … don’t tell him that … but the prayer is really for the single ice-cube. 😉
            (can’t say what creatures in it will die…)

          2. MekensehParty Avatar
            MekensehParty

            Hehehe

          3. 5thDrawer Avatar

            Speaking of which … I’m out for a bit. 🙂

          4. MekensehParty Avatar
            MekensehParty

            Cheers

          5. MekensehParty Avatar
            MekensehParty

            How was the bunny you went after?
            lol

          6. 5thDrawer Avatar

            hohoho … chocolaty …. you read too much into my lines … 😉

          7. This is a different kind of Tasmia , which I love to cheer.
            May be …but may be one day all religions will adopt 5th’s tasmia.
            Unfortunately this won’t happen in my lfetime

          8. MekensehParty Avatar
            MekensehParty

            From Mayor of Tripoli to High Priest of the whisky religion…
            I’d finally convert from zarkonianism lol

    2. 5thDrawer Avatar

      Speaking of which, this past year they opened a ‘Red Rose Halal’ shop not too far from me.
      Either they stole the name, or the Brits are in the business too. :-))))))
      Tea anyone?

  2. Did it ever occur to anyone that these allegations could be false? It seems to me the US Attorney in Iowa is trying to push another Muslim small business out of the picture. Why? Because they operate successfully in an unfriendly environment and there are big corporations who want their business. Living in Lebanon, you should know that reality of the situation is not always as it appears on the surface.

    1. MekensehParty Avatar
      MekensehParty

      The level of paranoia is amazing. Eve when the US government comes to protect muslim consumers from the lies of what looks like a sizable corporation (not a small business at all as you describe it) you side with the liars and thieves…
      As for people living in Lebanon, they wish the government would do its job (like it finally did lately) to make sure that what is written on the packing is true.

  3. Midamar has a good reputation. The US government is just trying to ruin a small Muslim owned business so that the Halal Beef market can be taken over by large American companies who don’t even know what Halal is.

    1. MekensehParty Avatar
      MekensehParty

      Fine, keep eating meat that you think is halal but that is not.
      If anything that “US government” that you despise so much was making sure that if you write halal on the meat you produce it better be really halal.
      But hey, you prefer to side with those that lie to you, secretly mess with Islamic traditions to fill their pockets just because they are Muslims, against the U.S. government who is simply trying to hold such thieves accountable for selling non-halal meat to Muslims…

      1. These are simply unproven allegations. There is no benefit in us acting as judge, jury and executioner. The US government is not that good at holding real criminals accountable. Do you honestly put your faith and trust in a legal system in which police are not indicted for killing blacks, or one which fails to prosecute torture of POWs? The CIA torture report was released not to long ago. What about its own war crimes in Iraq and elsewhere? If you want to put your trust in a corrupt legal system, by all means go ahead. But believe me, if you care about Halal meat, you will regret it if non-Muslim US meat supplies take over.

        1. MekensehParty Avatar
          MekensehParty

          Then why did you start acting like a judge by saying it’s a US government conspiracy? They are allegations and the trial will take place and justice will follow its course.
          I have almost full faith in the legal system of the U.S. Never believed it’s perfect but I know that it’s one of the best if not the best. Your rumbling about killing black people or the torture of Qaeda operatives is cheap propaganda in an attempt to discredit such a fair legal system. There’s been a trial in the case of killing a black person and the jury (with black juror) saw that the policeman behaved according to the book. Black policemen said all over the news that if it was them in that spot they would have probably behaved the same. As for the torture cases, it tells a lot that it was the government itself who prepared and published the investigation, yet another proof that we are a country of law where even the heads of the CIA are held accountable.
          Finally, and to ease your paranoia, what do you prefer: a Muslim selling halal meat that isn’t halal, or a non muslim that is selling true halal meat?

          1. 5thDrawer Avatar

            (wow … now it goes from simply the food, to every incident that ever occurred anywhere that maybe can be pinned on a Yank … in the end no-one trusts anything but their own eyes – every kitchen should have a microscope … Head-of-The-Table should say the prayer before anyone eats. 😉

          2. Even though Lebanon gained independence a long time ago, you are still colonized in the mind. Your saying this because consider the justice system in the US may be better in comparison to Lebanon’s or other Arab countries, a very low standard to compare against. There is evidence in the form of declassified military documents all over the internet which clearly indicate these crimes and Bush is enjoying a comfortable life on his ranch in Texas. Why are you trying to justify torture and murders of ethnic minorities? What your saying is absurd, there were protest by blacks all over the country in reaction to the injustice. And the only CIA officer in prison right now is the one who had the guts to blow the whistle. Who is there to answer for the torture and humiliation of POWs many of whom were never charged of a crime? What about Omar Khadr who was child when he was detained? And yes, I will trust a Muslim owned company who’s been in business for 40+ years and is certified by reputable certifies over American public companies who’s only motivation is the bottom line and who hold themselves accountable to wealthy shareholders only and not God. If you want to put your trust in them to provide you with Halal meat then to each his own.

          3. 5thDrawer Avatar

            From a guy who paid taxes for Omar Khadr’s ‘freedom’, allow me to say he was capable – child or not – of throwing a hand grenade. That it was his screwed-up Father that got him into the business of throwing is the part we felt was wrong about the incarceration with all the hard-liners, and thus not necessarily his fault, but there it is. He threw it. If the soldiers hadn’t dug him out of hiding afterward, he’d be doing it still. The hope now is that he can become a good citizen … and yes, of Canada.

            (Good in Canada is The Silent Majority) …. :-))))))))

          4. MekensehParty Avatar
            MekensehParty

            The U.S. justice system is the best in the world by all experts account. You can disagree but until you show your expertise in the matter and prove that it’s not your words mean nothing.
            Nobody is justifying torture or murder, you seem to be justifying that because the owners are Muslims and are being prosecuted by the U.S. legal system then they must be innocent. Stick to innocent until proven guilty (the founding principle of US justice may I remind you) and wait to see the proofs. If the Midamars are lying, they fed you meat that is impure in Muslim tradition, and the bottom line was all they had in mind. If they are truly innocent they will come out clean and go back to doing their business, nobody is after Muslim small, big or super big business. Be objective, wait for the trial.

      2. And did you know that many non-muslim American companies were buying fake Halal certificates from corrupt certifies in the past and selling to Muslim countries? This was reported in a gulf news , but the government did nothing, because they couldn’t care less about the integrity of what Muslims eat as long as the campaign contributions from large US food service companies keep coming.

        1. MekensehParty Avatar
          MekensehParty

          If those are facts that can be proved, take it to a U.S. court and bankrupt such companies. Nothing easier than starting a lawsuit in the US if you have enough evidence. If you decide to say nothing because you’re being shut by money then don’t blame but yourself.
          You really have no arguments here.
          Justice is blind in the USA, it has no religion or color. Prove what you allege and you can put the president in jail.

          1. 5thDrawer Avatar

            Hey Mekenseh … no-body wants to pay Jewish Lawyers … just make up slogans and walk the streets holding them up. It’s cheaper. :-)))))))

          2. OMG Mekenseh! Justice is soooooooo not blind here in the USA. Just recently a white police officer choked an innocent black man to death on the street. It was caught on tape. The police officer was not charged with a crime. If it was the other way around and a black officer choked a white dude to death what would happen to the black dude?
            Wall Street broke the country and the world in 2008 people lost everything and our taxes bailed out the banks that stole in the first place. The government just voted to bail them out again just in case they decided to rob the country blind again.
            Big corps are selling non halal food to the world, but the government goes after a small Muslim company. We don’t live in a Pollyanna world here. Lady Justice is struggling everywhere.

          3. 5thDrawer Avatar

            Your last line is true enough. And as for the rest, You have a ‘Media’ which is free to report it all. That’s a ‘one-up’, at least.

          4. MekensehParty Avatar
            MekensehParty

            Dude we saw the video how a 300 pound guy was resisting arrest and crushing the policeman trying to hold him down. If you are innocent there is no fear of the police in the US. Show your hands, cooperate and you will be free as a bird.
            Black policemen and white policemen there are no differences. They are men and women puting their lives in danger to stop criminals who wouldn’t hesitate a second shooting or killing them. Here’s another scenario for you, if every time a black policeman shoots a white criminal all white people go down on the streets protesting, or each time a black criminal shoots a white person the same happens there will be unending protests on the streets. You are confusing a lot.
            They didn’t bail out the banks for free, in fact they sucked them dry, people made huge benefits and banks got regulated like never before. Please stop distorting the truth or saying the part that fits your propaganda. Experts decided that the banks must survive, who are you to say that they shouldn’t? Plus, if you look at the economy today you will notice that the government did the right thing and got the US out of the sinkhole.

          5. 5thDrawer Avatar

            (and banks NEED to be regulated …)

          6. roccolore Avatar
            roccolore

            A black Muslim recently killed two police officers.

    2. 5thDrawer Avatar

      In the middle of Corn&Beef country, no-one wants a bad ‘rep’ … they want to sell.
      But within large corporations, it can become harder to keep a handle on a whole operation.
      For example, the military paying $150 for a hammer you and I can buy for $16.50 at the local hardware, simply means that there’s an office screw-up, or a bad egg in Purchasing.
      (one example… is enough IF someone brings it up ;-))
      There was a time people trusted the ‘Local Butcher’. Seems they went out of vogue.

    3. The company may have had a good reputation , or they wouldn’t have been in business for such a long time, but unfortunately such situations do not help in sustaining a good reputation. As I mentioned in a previous post the issue is not about whether the product is halal or not , as much as misleading the consumer or the importer in this particular mislabeling case. As you may probably know the only way to trace back a product in the US is through the plant number stamped on the pack . Once this plant number is tempered with then it is very difficult to trace the product in case of any recalls . In this particular case the company tampered with the plant number as evident from the article .

      The USDA is not in the business of conspiring against any business. It is there to protect the consumers of USDA certified products .
      By the way the Halal certification is a requirement of the country importing the product . The USDA is there to ensure that each country gets the certification required, but the USDA does not get involved in the religious technical aspect of the Halal certification.

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