News |
Former CEO sent to Prison, fined $64mil for import fraud |
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NEWARK, N.J. – July 27, 2010-- Thomas George, the
former Chief Executive Officer of Sterling Seafood Corporation, was
sentenced today to 22 months in prison for importing falsely labeled
fish from Vietnam and evading over $60 million in federal tariffs, as
well as selling over $500,000 in similarly misbranded fish purchased
from another importer, United States Attorney Paul J. Fishman
announced.
According to documents filed in this case and statements made in court: From January 2003 to June 2006, George maintained a business relationship through Sterling Seafood with a seafood distribution company located in Vietnam. As part of that business relationship, Sterling Seafood regularly purchased fish in the catfish family, Pangasius hypophthalmus, sometimes referred to as Vietnamese catfish. Sterling Seafood would then resell the fish in the United States. In the interest of fairly regulating commerce in the U.S., the U.S. Department of Commerce establishes anti-dumping duties or tariffs on certain imported products – taxes imposed to increase the price of goods so they do not provide unfair complection to comparable goods produced locally. In January 2003, an anti-dumping duty or tariff was placed on all imports of Vietnamese catfish into the United States because catfish was being marketed at a significantly lower price than was market rate at that time. That initial anti-dumping order imposed a duty of up to 63.88 percent on all catfish subject to the order, and was adjusted based on market conditions. At his plea hearing, George admitted that from 2004 to 2006, he agreed with the Vietnamese distribution company to engage in a scheme to falsely identify and declare the purchase and importation of the Vietnamese catfish in order to evade the applicable anti-dumping duties. George stated that he specifically instructed the Vietnamese company to fraudulentlyidentify the Vietnamese catfish as “grouper” on commercial contracts, purchase orders, and other documents because grouper was not subject to any anti-dumping duties. Additionally, George admitted that from 2004 to 2005, he purchased over $500,000 of similarly misbranded Vietnamese catfish that was imported from Vietnam by a Virginia corporation and then sold that misbranded Vietnamese catfish throughout the United States. George’s 22-month sentence represents 18 months on Count One and 22 months on count two, to run concurrently. In addition to the prison term, Judge Hochberg sentenced George to a year of supervised release and ordered him to pay restitution in the amount of $64,173,839.16. George also paid a $50,000 community service payment to the National Fish and Wildlife Foundation to be expressly earmarked for research into the identification of fish and other marine organisms. This sentence does not preclude him from facing additional civil penalties. |
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