In a major fraud indictment, Cedar Rapids based halal food brand Midamar has been booked by federal prosecutors for supplying $4.9m worth of beef without following the halal practices promised in its labelling and advertising.
Citing the federal indictment, the Guardian reported that the Midamar and its directors have been charged for conspiring to create and use false statements and documents, sell misbranded meat, and commit mail and wire fraud.
The company supplied the meat to countries including Malaysia, Kuwait and United Arab Emirates.
Islamic Services of America, another company controlled by the brothers, was also involved in this allegation, the report said.
According to the indictment, both the companies supplied the product under a false impression of compliance with import and United States Department of Agriculture requirements.
Meanwhile, a statement from Midamar read: This indictment is based in large part on administrative infractions that occurred in 2010 involving facility numbers. Normally these matters are resolved between the regulatory agency and the company.
"Midamar took corrective action 4 years ago, this action was accepted by the USDA and the company directors believed at that time that the matter was resolved."
However, the company said it is unable to comment on specific charges.
