Companies plead guilty to mislabelling halal products

Midamar Corp and Islamic Services of America (ISA) each entered guilty pleas in federal court in Cedar Rapids, Iowa to one count of conspiracy to make false statements on export certificates, sell misbranded meat and commit wire fraud, among other offences. According to Associated Press reports, under the plea agreement each company must forfeit US$600,000 (£390,000) in proceeds derived from the scheme. They could also face a term of probation and an additional fine at sentencing. Midamar is a food distributor, while ISA certifies Midamar and other companies’ food products as halal. Both were founded and operated by the Aossey family in Cedar Rapids. Midamar posted a statement on its website saying it “accepts responsibility for the above charges and strives to continuously improve its processes and communications. “This agreement will resolve all matters, set the record straight, and enable the company to focus on delivering quality food products and franchise supply chain solutions for our customers internationally.” According to the conspiracy count, Midamar made “fraudulent, deceptive, and misleading claims” about the source and nature of beef products, the way the cattle were slaughtered and the nature of the halal slaughter practices. Some Midamar products came from a Minnesota slaughterhouse that wasn’t approved by Malaysia or Indonesia. Founder Bill Aossey directed employees to remove its establishment number from the packaging and replace it with labels that falsely showed the meat came from a certified Nebraska slaughterhouse, according to testimony. Prosecutors allege Midamar told customers that its cattle were hand-slaughtered by Muslim slaughtermen who recited a prayer and advertised that it did not use penetrative captive bolt stunning. But Midamar’s primary supplier used bolt stunning and often didn’t have Muslim slaughtermen present, the indictment alleges. “Midamar has taken full responsibility for wrongful conduct occurring between 2007 and 2012,” the company said in a statement. “Midamar and its owners sincerely apologise to all its customers and supporters for the errors in judgment that led to the charges.”

Companies plead guilty to mislabelling halal products

Two US companies have pleaded guilty to conspiring to export falsely labelled halal beef products for sale in Malaysia, Indonesia and elsewhere.

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