July 8, 2013 — On Friday 14 June 2013, the United States Court ordered that Arnold Bengis, Jeffrey Noll and David Bengis pay restitution of nearly USD 22.5 million, approximately R294 million to South Africa following extensive, unlawful harvesting of south and west coast rock lobster in South African waters.
Arnold Bengis was the managing director of Hout Bay Fishing Industries (Pty) Ltd. This is the largest restitution amount ever awarded under the Lacey Act. The Lacey Act is an American law that makes it a crime to import fish, wildlife or plants that are taken in violation of another country's laws, into the United States of America (US).
Hout Bay Fishing Industries (Pty) Ltd engaged in an elaborate scheme, to illegally catch and export large quantities of south and west coast rock lobster from South Africa (SA) to the US.
In SA, the company underreported catches, bribed fisheries inspectors and submitted false information to the Department. It also exploited South African workers whom they employed without valid work permits, from the Hout Bay Fishing Industry factory to work for low wages in its American processing factory.
In May 2001 Marine & Coastal Management, now the department of Agriculture, Forestry and Fisheries, advised their counterparts in New York that a container of illegal harvested fish had been shipped from Hout Bay Fishing (Pty) Ltd to New York. This was intercepted by the American authorities who then commenced their own investigation with extensive cooperation from MCM officials and the Scorpions.
After being charged in the United States, Arnold Bengis, Jeffrey Noll and David Bengis were sentenced to various terms of imprisonment and were fined a total of USD13,3 million. This followed the investigation by the Scorpions and the successful prosecution of Hout Bay Fishing (Pty) Ltd in South Africa in April 2002 for illegal fishing. Hout Bay Fishing paid a fine of 12 million Rand and two of its fishing vessels were forfeited to the State for overharvesting of south and west coast rock lobster between 1987 and 2001.
Read the full story at The Fish Site