Assistant U.S. Attorney Richard Murphy said in his opening statement Tuesday that William Aossey Jr. “chose to do things his own way,” and he called “the shots” in every part of Midamar Corp.
Aossey, 73, the founder of Midamar, is on trial in U.S. District Court for 19 counts relating to an alleged halal beef export scheme. He is charged with 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 wire fraud; three counts of money laundering; and one count of conspiracy to commit money laundering.
Murphy said that from 2007 to 2010, Aossey devised a scheme to sell halal meat to Maylasia and Indonesia while thwarting those nations’ slaughtering requirements.
He told jurors they would hear from Midamar employees about how Aossey directed them to remove U.S. Department of Agriculture labels and other stamps placed on the products produced at its primary beef supplier, PM Beef in Windom, Minn., which was not approved to export to the two countries, to indicate the products were produced by J.F. O’Neill Packing Co. in Omaha, Neb., an approved halal supplier. Halal meat must be cut and produced according to Islamic law.
Murphy said the scheme went on until Midamar was reported to the USDA. An investigation found at least 22 shipments had falsified labels and stamps, which were intended to mislead USDA inspectors.
“Mr. Aossey admitted knowing what was being done and said it was his responsibility,” Murphy said.
Haytham Faraj, Aossey’s lawyer, admitted in his opening statement that “some wrong numbers” were on export certificates.
Phillip Payne, former operations manager, negotiated the slaughters and the contracts, Faraj said. But Payne was “lazy” and came up with a plan to substitute establishment numbers, which identified where meat is supplied.
Faraj said witnesses will testify that Payne was told not to do this but continued to tell employees to change the numbers of PM Beef to look like they came from O’Neill.
Faraj said Payne received a “sweetheart” deal from the prosecution. He asked the jurors to carefully listen to Payne’s testimony and consider his “motivation.”
Payne, 50, of Ryan, pleaded guilty earlier this year to misdemeanor conspiracy to make and deliver false certificates and writings. He faces a year in federal prison.
Tamara Dey, a USDA inspector, testified about export certificates and establishment numbers, which are assigned to identify a specific plant. She testified that it wasn’t lawful for Midamar to change establishment numbers and USDA labels.
The trial continues at 9 a.m. Wednesday and is expected to last all week.