Saving Seafood

DOJ green lights Clipper, Blue North merger

September 12, 2019 — The US Department of Justice (DOJ) has greenlit a proposed merger between the two largest Pacific cod longline companies, sources told Undercurrent News.

The DOJ review of the merger of Clipper Seafoods and Blue North, which is expected to include the Bristol Bay Native Corporation (BBNC) taking a majority stake in the combined company, was undertaken to ensure that the combined company wouldn’t create a monopoly. Sources told Undercurrent that the DOJ’s seal of approval means that the deal is likely to close this week.

Despite the combined company’s heft in the market, Clipper and Blue North argued that there are several factors that go into cod prices, like other species, “so there shouldn’t be any antitrust problems”, sources previously told Undercurrent.

Read the full story at Undercurrent News

StarKist ordered to pay USD 100 million fine for role in tuna price-fixing

September 12, 2019 — StarKist & Company has been ordered to pay a criminal fine of USD 100 million (EUR 90.3 million) for its role in a tuna price-fixing conspiracy, the statutory maximum fine.

The decision, which was announced by the Department of Justice (DOJ) on 11 September, comes after the court and the company wrangled over the monetary amount of the fine. StarKist’s attorneys had been pushing to have the fine lowered to USD 50 million (EUR 45.1 million), calling the decision “life or death” for the company, while prosecutors had been pushing for a full fine based on the company’s recent investment in TechPack Solutions, an India-based can and bottle technology firm.

Read the full story at Seafood Source

Alaskan native group still set to buy US Pacific cod catchers if DOJ approves merger

August 1, 2019 — The merger of the two largest US Pacific cod longline catching companies is under review by the US Department of Justice (DOJ), sources familiar with the deal told Undercurrent News.

If the DOJ approves the merger, the combined company will be renamed Blue North Clipper (BNC) and then, around 30 days later, acquired by the Bristol Bay Native Corporation (BBNC), the sources said. BBNC is set to take 75% of BNC, with the existing shareholders of both companies owning the rest.

It’s thought BNC will be relocated to the offices of Clipper, which is seen as being the driver of the deal, they said. It’s also thought Dave Little, the main shareholder in Clipper, will ultimately head up the combined company. Patrick and Michael Burns, the brothers who founded Blue North, will also remain involved, sources said.

Read the full story at Undercurrent News

Fishing crew charged with shark fin trafficking

December 12, 2018 — The owner and officers of a Japanese-flagged fishing vessel were charged in federal court Tuesday with aiding and abetting the trafficking and smuggling of nearly 1,000 shark fins into and out of Hawaii last month.

During a year-long tuna-fishing expedition, the crew of a Japanese fishing boat —the M.V. Kyoshin Maru No. 20 — allegedly harvested fins from about 300 sharks, at least some species of which are protected under the Endangered Species Act and the Convention on International Trade in Endangered Species.

One of those species, the oceanic white tip shark, has declined in population by about 80-95 percent across the Pacific Ocean since the mid-1990s, according to the National Oceanic and Atmospheric Administration.

According to a U.S. Department of Justice press release, the crew cut the shark fins off, “in some instances while the sharks were stunned but still alive, and discarded the finless carcasses into the ocean,” all under the supervision of the captain and at the direction of the ship’s officers.

The illegally-harvested fins were discovered in the luggage of 10 Indonesian nationals, who had been employed as fishermen on the boat. The Indonesian fishermen had been dropped off from the fishing boat at a port in Honolulu and were intending to catch a flight to Jakarta.

Read the full story at The Garden Island

StarKist admits fixing tuna prices, faces $100 million fine

October 22, 2018 — StarKist Co. agreed to plead guilty to a felony price fixing charge as part of a broad collusion investigation of the canned tuna industry, the U.S. Department of Justice announced Thursday.

The DOJ said StarKist faces up to a $100 million fine when it is sentenced. Prosecutors allege that the industry’s top three companies conspired between 2010 and 2013 to keep prices artificially high.

“We have cooperated with the DOJ during the course of its investigation and accept responsibility,” said StarKist chief executive Andrew Choe. “We will continue to conduct our business with the utmost transparency and integrity.”

StarKist is owned by South Korean company Dongwon Industries, one of the largest tuna catching companies in the world. The parent company’s website carries pledges to abide by ethical standards and good corporate citizenship.

The scheme came to light when Thai Union Group’s Chicken of the Sea attempt to buy San Diego-based Bumble Bee failed in 2015, according to court records. Chicken of the Sea executives then alerted federal investigators, who agreed to shield the company from criminal prosecution in exchange for cooperation.

Bumble Bee Foods last year pleaded guilty to the same charge and paid a $25 million fine, $111 million lower than prosecutors said it should have been. Prosecutors said they feared putting the financially struggling Bumble Bee out of business with a high fine and agreed to let the company make interest-free payments for five years.

Read the full story from the Associated Press at the Gloucester Daily Times

Hawaiian Longline Operators Accept $475,000 MARPOL Fine

September 12, 2018 — The U.S. Department of Justice and the U.S. Coast Guard have reached a consent decree with Hawaii-based operator Asure Fishery over the discharge of oily waste from a commercial longliner. It is the fourth MARPOL enforcement action that the USCG has brought against a Hawaiian longline fishing firm this year.

In a federal complaint filed last Friday, federal prosecutors alleged that the tuna longliner Jaxon T was not equipped for the treatment or storage of oily bilge waste under way, and she often discharged these wastes at sea. The complaint alleges that company managers Khang Quang Dang and Hanh Thi Nguyen had reason to know that the vessel lacked proper equipment for handling oily waste, but still allowed it to sail.

According to the complaint, the bulkhead separating the Jaxon T’s engine room from the fish hold had penetrations that allowed “free flow of fluids” between the two compartments. Apart from the potential safety implications of this arrangement, “substantial” amounts of water from melted ice would flow into the engine room, where it would raise the level of the water in the bilge. To address this problem, the crew would allegedly pump the bilge water directly over the side using a portable electric water pump, “one or more times per day.”

Read the full story at the Maritime Executive

 

Walmart resolves anti-trust lawsuit against Chicken of the Sea

May 23, 2018 — Walmart has reached an agreement with Thai Union’s Chicken of the Sea International regarding antitrust claims initially brought forth by the retailer back in October 2016, and later amended in May of 2017.

The terms of the agreement will see Tri-Union Seafoods – which trades as Chicken of the Sea International – pay a cash settlement to Walmart and partner with the retail giant in a series of joint programs and new product promotions. New product innovations will also be launched and featured across Walmart stores in the United States as a result of the agreement, Chicken of the Sea said in a press release.

Groups of American wholesalers, retailers, and foodservice outfits began filing lawsuits in 2015 alleging that the three biggest providers of canned tuna in the United States – Tri-Union Seafoods, StarKist, and Bumble Bee – had conspired to “fix, raise, maintain, and/or stabilize prices for PSPs [packaged seafood products]” in the country. The series of lawsuits, as well as Thai Union’s failed bid to purchase Bumble Bee in 2015, spurred the U.S. Department of Justice (DOJ) to launch its own criminal antitrust investigation, examining claims that the three companies had colluded to increase prices for packaged tuna from 2008-2010, until at least July 2015.

Read the full story at Seafood Source

 

Fishing company to pay $400,000 penalty following 4,200 gallon fuel spill into New Bedford Harbor

May 8, 2018 — A fishing company will pay $400,000 in penalties after spilling thousands of gallons of fuel into New Bedford Harbor and routinely dumping oily waste overboard, in violation of the Clean Water Act.

In August of 2017, the Challenge — a fishing boat owned by the New Bedford company Quinn Fisheries — sunk while docked on the city’s waterfront, causing a fuel spill that spread over a mile and killed at least five ducks.

The Coast Guard and the U.S. Department of Justice launched an inquiry, and found that the ship sunk when its captain failed to shut off a valve after illegally dumping bilge into the harbor and leaving the boat for the day, according to documents filed in U.S. District Court.

“Discharges of fuel and oily bilge wastes into our nation’s waters have long been prohibited and will not be condoned,” Captain Richard J. Schultz, Commander of the Coast Guard’s Sector Southeastern New England, said in a statement. “These defendants will pay significant penalties and conduct fleet-wide corrective measures for their discharges of oil into New Bedford Harbor and the ocean.”

Quinn Fisheries signed a consent decree agreeing to pay the penalties and correct violations, but did not admit liability for the discharges. The company could not immediately be reached for comment.

Read the full story at MassLive

 

Report detailing enforcement abuses barred from fisherman’s trial

January 29, 2018 — The first criminal trial of a Long Island fisherman charged in connection with a federal probe of a controversial fish-auction program is set to begin, but a report detailing fisheries enforcement abuses by the government has been barred from the trial.

Lawyers for Northport fisherman Thomas Kokell, charged in a multi-count indictment with overharvesting fluke, argued in pretrial motions that a 2010 federal inspector general’s report detailing abuses and “overzealousness” by the National Marine Fisheries Service was vital to the defense.

The Environmental Crimes unit of the U.S. Department of Justice has reached plea agreements with seven Long Island and New York City fishermen and fish dealers in connection with the six-year probe.

Most have been charged with mail fraud, wire fraud, conspiracy and false reporting crimes. Five received prison time or home detention, including a 74-year-old Mattituck fisherman charged with taking $78,000 in illegal fish. Fines and restitution have ranged from $150,000 to $932,000 and most lost their fishing or dealer permits.

In November 2016, Kokell was charged with conspiracy, mail fraud and falsification of federal records in connection with the illegal harvest of more than $400,000 worth of fluke. He is the first to fight the charges in court. The trial is set to begin next month.

His lawyers have argued that Kokell’s case should be handled as a civil, not criminal, case, citing findings from the inspector general’s report and the federal Magnuson-Stevens Act, which governs the fisheries.

Kokell, who was fined $120,000 in a 2006 case involving overfishing, had been a vocal critic of the marine fisheries agency‘s enforcement and legal practices.

He and his wife appeared with Sen. Chuck Schumer (D-N.Y.) at a Port Washington dock to demand action against the fisheries agency, a unit of the National Oceanic and Atmospheric Administration.

Read the full story at Newsday

 

Rafael Arrest Shines Light on Fishing System

December 1, 2017 — Dozens of New Bedford-based commercial fishing boats were ordered to stop fishing last week in the wake of the federal prosecution of fishing magnate Carlos Rafael, known as The Codfather, who pleaded guilty to tax evasion, cash smuggling, and falsifying records and misidentifying and mislabeling fish to avoid fishing quotas.

Members of the dwindling Vineyard fishing community who have been watching the proceedings say the tale is a sad commentary on the state of the industry and highlights flaws in its regulation.

“It’s a symptom of poor policy,” said Wes Brighton, a Vineyard fisherman and one of the only Islanders to hold a federal commercial groundfishing permit. Mr. Brighton fishes for lobster, conch, monkfish, and some cod from his boat Martha Elizabeth.

The system creates an imbalance, he said, giving independently-owned family fishing businesses little access to the fisheries and allowing larger corporations the ability to consolidate fishing permits and quota.

Mr. Rafael was arrested and charged in February 2016 after an undercover investigation. According to the government, federal agents posed as organized crime figures interested in buying his fishing business. For about four years, the Department of Justice said, Mr. Rafael lied to the government about the quantity and species of fish his boats in an effort to evade the strict federal quotas that are designed to protect the sustainability of certain fish species.

Read the full story at the Vineyard Gazette