Saving Seafood

Appeals court hears Chris Lischewski’s claim of judicial error

June 17, 2021 — Former Bumble Bee Foods President and CEO Chris Lischewski formally appealed his conviction for leading a tuna price-fixing conspiracy in front of a three-judge panel on Wednesday, 16 June.

Lischewski’s appeal is centered around an argument that District Court Judge Edward M. Chen, who oversaw the case, gave incorrect instructions to the jury. In Wednesday’s hearing, Lischewski’s lawyer, John D. Cline, called the jury instructions given by Chen erroneous and confusing, which could have made the difference in what he called a “very close case.”

Read the full story at Seafood Source

Ken Worsham, Scott Cameron avoid jail time, concluding tuna price-fixing case sentencings

April 28, 2021 — Former Bumble Bee Foods executives Kenneth Worsham and Walter Scott Cameron were each sentenced to three years’ probation for their roles in a conspiracy to fix the price of canned tuna sold in the United States between 2011 and 2013.

Both were sentenced by Judge Edward M. Chen of the Northern District of California on Wednesday, 28 April, and both received more lenient sentences than typical for the level of crimes to which they pleaded guilty because they served as key witnesses in the U.S. government’s case against former Bumble Bee Foods CEO Chris Lischewski, who is currently serving a 40-month prison sentence. Former StarKist executive Stephen Hodge also served as a witness in the U.S. government’s case against Lischewski, and received leniency in a non-custodial, probationary sentence issued by Chen in January.

Read the full story at Seafood Source

“I just did the job” – StarKist’s Stephen Hodge explains role in price-fixing scheme

January 22, 2021 — Stephen L. Hodge says he’s sorry for his role in the price-fixing scandal that has rocked the U.S. canned tuna industry, resulting in massive fines for two of the companies involved, including his former employer, and a prison sentence for one of the scheme’s leaders.

Hodge, a former senior vice president of sales for StarKist who testified on behalf of the U.S. Department of Justice (DOJ) in the criminal price-fixing cases against StarKist, as well as Bumble Bee Foods and former Bumble Bee President and CEO Chris Lischewski, avoided jail time in his sentencing, which took place 13 January.

Read the full story at Seafood Source

How America’s Canned Tuna Industry Went Belly Up

August 18, 2020 — This story is about the canned tuna business and the three big companies that dominate it. It’s a story about price fixing, and it’s a saga so dark and disruptive those companies are still reeling from it, facing bankruptcy, legal action, even prison time. It’s a story that upended a century-old industry—but if you ask Cliff White, executive editor of the news website SeafoodSource, he’ll tell you there’s way more at stake than just business: “Price fixing is absolutely wrong, especially for a product that people depend on. That’s the difference between them eating dinner and not eating dinner. That’s canned tuna. We’re not talking about bluefin toro that’s served at Nobu.”

Tuna has been eaten all over the world for thousands of years. In the United States, it was at one time a food mostly associated with immigrant communities—Japanese Americans who fished it in the waters off California, or Italian Americans who’d grown up eating bluefin from the Mediterranean. What turned it into a universal staple was a new technology: canning.

Anna Zeide, founding director of the food studies program at Virginia Tech, explains: “Right around the turn of the 20th century is where you start to see a really focused effort on the part of early tuna canners to build an industry. Canned tuna has this really meteoric rise from being a very marginal food that very few people ate in the early 20th century to being an embodiment of canned food and American processed food by the 1950s and ’60s.”

Read the full story at Slate

Exclusive: Chris Lischewski offers a warning to seafood CEOs

July 1, 2020 — Chris Lischewski is the former president and CEO of Bumble Bee Foods. Earlier this month, Lischewski was sentenced to 40 months in prison and given a USD 100,000 (EUR 88,000) fine after a jury found him guilty of conspiracy to fix the prices of canned tuna sold in the United States from 2011 to 2013.

SeafoodSource: Unless your testimony was misunderstood, you swore under oath that you were not part of any conspiracy to fix the prices of canned tuna while you led Bumble Bee. Do you stand by that statement? And if so, is that an indictment of the numerous individuals who swore under oath that you had been a leader in the purported conspiracy?

Lischewski: I did swear under oath that I would tell the truth, which is exactly what I did. Only two witnesses – [Walter Scott] Cameron and [Ken] Worsham – testified that I was a leader in the purported conspiracy. That testimony – given in return for a favorable sentencing recommendation by the government – was false. Shue Wing Chan of Chicken of the Sea testified that he had an unspoken “understanding” with me not to promote aggressively. But he admitted that the “understanding” existed only in his own mind and that I never told him that I shared it. As I testified at trial, whatever may have been in Chan’s mind, I had no price-fixing “understanding” with him of any kind.

Read the full story at Seafood Source

IWMC World Conservation Trust: Response to Price-Fixing

June 22, 2020 — The following was released by the IWMC World Conservation Trust:

On Tuesday, Chris Lischewski, the driving force behind the creation of the International Seafood Sustainability Foundation (ISSF), received a three-year prison sentence in the United States for fixing the price of canned tuna. The former CEO of Bumble Bee Sea Foods is now disgraced beyond recovery.

The story behind this one-billion-dollar price fixing scandal, the biggest and most outrageous industrial subterfuge since Enron, is complex. It involves a web of opportunism and mixed agendas. And what still needs to be exposed is the role of NGOs in facilitating this mega crime.

ISSF lives on even though three of its corporate founders, StarKist, Bumble Bee Sea Foods and Chicken of the Sea, have been found guilty of conspiring to cheat American consumers out of the benefits of competition. Separately, another founding member, World Wildlife Fund (WWF), is being investigated for funding, assisting, and/or turning a blind eye to rape, murder and/or terrorism in Africa in pursuit of its fortress conservation crusade.

On the surface, it made absolutely no sense for tuna producers to get into bed with WWF’s satellite ISSF. In 2010, WWF orchestrated a proposal at CITES COP15 to list bluefin tuna in Appendix I. If it had not been inept at managing its relationship with the European Union, WWF might have succeeded or at least come close go destroying the industry altogether. In the wake of this near disaster, tuna producers were expected to mount a counter offensive, perhaps even withdraw from ISSF. Instead, in what seemed like a tactical blunder on his part, Lischewski promoted the virtues of collaborating with WWF, ISSF and the Marine Stewardship Council (MSC), which was another WWF creation.

Read the full release here

Found guilty of price-fixing, Chris Lischewski braces for upcoming sentencing

June 4, 2020 — Chris Lischewski, the former president and CEO of Bumble Bee Foods, will finally face sentencing on Tuesday, 16 June after months of delays caused by the coronavirus crisis.

After a three-week-long trial ending in December, a jury found Lischewski guilty of being involved in a scheme between Bumble Bee, StarKist, and Chicken of the Sea to fix the price of canned tuna sold in the United States between 2011 and 2013. Lischewski faces a maximum penalty of 10 years in prison and a fine of USD 1 million (EUR 900,000).

Read the full story at Seafood Source

Washington state sues Starkist over price-fixing

June 3, 2020 — Bob Ferguson, the attorney general for the U.S. state of Washington, filed a civil lawsuit on 2 June against canned tuna producer Starkist, its parent company Dongwon Industries, and Chris Lischewski, the former CEO of Bumble Bee Foods, alleging a price-fixing conspiracy they were involved cost the state’s citizens at least USD 6  million (EUR 5.3 million).

Washington is the first state to bring a civil suit in the price-fixing scandal, which resulted from an investigation by the U.S. Department of Justice’s Antitrust Division, resulting in guilty pleas from StarKist and Bumble Bee in separate criminal trials, and Lischewski’s conviction in a trial at the end of last year.

Read the full story at Seafood Source

Bumble Bee hoping to pay executive bonuses, over objections of creditors

January 10, 2020 — The creditors of Bumble Bee Foods, which filed for chapter 11 bankruptcy protection in November 2019, have asked the judge overseeing the case to prevent the company from paying year-end bonuses to some of its employees.

Bumble Bee is hoping to pay 37 of its employees enrolled in its Key Employee Incentive Program (KEIP) – created after the company filed for bankruptcy – between USD 1.3 million and USD 3.2 million (EUR 1.16 million and EUR 2.88 million) as a performance bonus for helping the company maintain cash flow during its difficult past few months.

Read the full story at Seafood Source

‘Stalking horse’ bidder lined up for Bumble Bee as part of likely bankruptcy filing

November 20, 2019 — A “stalking horse” bidder, said to be an industry player, is lined up for Bumble Bee Foods if — or when, according to some executives — the company goes into US Chapter 11 bankruptcy protection, sources told Undercurrent News.

A Chapter 11 filing is seen as highly likely for the beleaguered shelf-stable seafood giant, driven by the lack of a settlement with the litigants in the civil lawsuits against the Lion Capital-owned company over its tuna price fixing, sources said. This comes as Chris Lischewski, the long-time CEO of Bumble Bee, is on trial in San Francisco, California for allegedly leading the price-fixing.

Undercurrent was unable to identify the stalking horse bidder, but Bolton Group International, Canadian Fishing Company (Canfisco), Cooke and Mitsubishi Corp. are four trade players who are said to have looked at all or parts of the business before.

Fong Chun Formosa Fishery Company (FCF), the Taiwanese tuna giant, is already a 22% shareholder in Bumble Bee and Itochu, the Japanese trading house, was also tipped by some tuna sector sources as a possible interested party.

Read the full story at Undercurrent News