Saving Seafood

Seafood exec escapes jail time

July 14, 2017 — A senior sales executive at a Gloucester seafood processing company avoided jail time, but will spend the next six months under home confinement and must pay restitution of $25,879 after his federal sentencing Thursday for tax fraud.

Richard J. Pandolfo, 71, who lives in North Andover and has been an executive vice president at National Fish & Seafood on Parker Street, was sentenced by U.S. District Court Judge Richard Stearns to a year’s probation, with six months to be served in home confinement.

The judge also assessed a fine of $5,000 and ordered Pandolfo to pay restitution to the IRS for the amount he had failed to pay on “supplemental income” he had received from the company and former National Fish executive and part-owner Jack Ventola between 2008 and 2012.

Pandolfo was indicted in June 2016 by a federal grand jury on four counts of filing false tax returns. As part of a plea agreement with federal prosecutors, the charges were reduced to a single count. But he still faced a federal prison term of up to three years and a fine of up to $100,000 in addition to the restitution when he stood for sentencing Thursday.

According to the U.S. Attorney’s office, Pandolfo failed to pay federal tax on about $90,000 of the $95,000 in supplemental income he received from Ventola from 2008 to 2012. According to the original indictment, some of the supplemental pay went directly to Pandolfo, while other payments went to a shell interior design company established in the name of Pandolfo’s wife. Pandolfo’s wife was not charged in the indictment.

Read the full story at the Gloucester Times

National Fish executive makes deal in fraud case

April 24, 2017 — A senior executive at Gloucester-based National Fish & Seafood pleaded guilty to one count of tax fraud Thursday in U.S. District Court in Boston and is set to be sentenced in July, the Justice Department announced.

Richard J. Pandolfo, 71, of North Andover, was indicted by a federal grand jury last June on four counts of filing false federal tax returns between 2009 and 2012.

The charges were reduced to one count as part of a plea agreement with federal prosecutors. Pandolfo, an executive vice president at the East Gloucester seafood processor, faces up to three years in prison, one year of supervised release, a fine of $100,000 and restitution of $25,879 to the Internal Revenue Service.

Prosecutors charge Pandolfo failed to pay federal tax on about $90,000 of the $95,000 in “substantial supplemental income” he received from former National Fish & Seafood executive and part-owner Jack Ventola from 2008 to 2012.

According to the original indictment, some of the supplemental income went directly to Pandolfo, while other payments went to a shell company established in the name of Pandolfo’s wife, who is not named in the indictment, through another shell company controlled by Ventola.

Read the full story at the Gloucester Times

MASSACHUSETTS: Fish processor seeking tax subsidy from Gloucester

October 13th, 2016 — National Fish & Seafood, a tenant at Americold’s sprawling waterfront property in East Gloucester, is looking to buy the facility.

National Fish has approached the city about supporting its application for a Tax Increment Financing subsidy. The TIF is part of its plans to purchase the two-building site at 159 East Main St. from a real estate subsidiary of Americold called ART Mortgage Borrower Propco.

The sale price included in a circulating draft of the purchase-and-sale agreement, according to Gloucester Economic Development Director Sal Di Stefano, will be in the neighborhood of $4 million. The property and structures carry an assessed value of $8.28 million.

“They’ve approached us about supporting their application for a TIF and we’re in the very early stages of that process,” Di Stefano said. “We’re always happy to work with any company that is looking to expand and invest here in Gloucester, especially on the waterfront.”

National Fish employs about 155 at the site, where it processes and markets more than 40,000 tons of frozen seafood annually under the National Fish, Matlaw’s and Schooner brands. The property, along with the Gloucester Marine Railways, are the last two East Gloucester waterfront parcels still within the city’s Designated Port Area. Fifty percent of properties in the DPA are required to be dedicated for marine industrial uses. 

National Fish President Todd Provost did not return phone calls Wednesday seeking comment. An Americold official declined comment.

The East Gloucester property stretches over more than 4 acres on the eastern shore of Smith Cove, supporting two buildings with a combined area of 171,653 square feet, according to city tax records.

The larger of the two warehouse buildings — at 109,941 square feet — is used for cold storage and was built in 1961. The smaller warehouse, 65,712 square feet, is used for processing and was completed in 1962. The site also includes 14,800 square feet of docks.

Read the full story at The Gloucester Daily Times 

Despite parent company’s woes, National Seafood turns a profit

October 3, 2016 — The bankruptcy proceedings involving international seafood processing giant Pacific Andes International Holdings has pulled back the curtain on the performance of its Gloucester-based subsidiary, National Fish & Seafood.

Quoting filings in Pacific Andes’ Chapter 11 bankruptcy case in New York, the Undercurrent News website reported that National Fish, normally mute on all matters related to its financial performance, turned a $1.28 million profit on revenues of $115 million for the six-month period that ended March 31.

That appears to be a marked improvement over the seafood processing subsidiary’s performance in the year that ended Sept. 28, 2015, when National Fish reported a similar profit of $1.27 million on revenues of $252.7 million for the entire 12-month period.

To date, National Fish, which processes and markets more than 40,000 tons of frozen seafood annually at its East Main Street facility under the National Fish, Matlaw’s and Schooner brands, has remained above the bankruptcy fray even as Pacific Andes has explored selling off other subsidiaries to pay creditors.

Read the full story at the Gloucester Times

Gloucester seafood executive indicted on tax fraud charges

June 9, 2016 — The U.S. Attorney’s office in Boston has indicted Richard J. Pandolfo, a senior executive at Gloucester-based National Fish & Seafood, on four counts of filing false federal tax returns between 2009 and 2012.

The Pandolfo indictment, unsealed Wednesday night, comes seven months after Jack Ventola, then president and part-owner of National Fish & Seafood, stepped down following his federal indictment on conspiracy to defraud the United States government by failing to pay taxes on about $2 million in income he received between 2006 and 2009.

The Ventola case has not yet gone to trial, according to the U.S. Attorney’s office in Boston.

According to the federal indictment, Pandolfo, 70, of North Andover, received about $95,000 in “supplemental income” from Ventola — some directly to Pandolfo and others to his wife — and did not accurately report or pay taxes on about $90,000 of it.

The indictment also alleges that other payments were made to a shell company established in the name of Pandolfo’s wife, who is not named in the indictment, and were directed to it through a shell company controlled by Ventola.

Read the full story at the Gloucester Times

LIVE FROM SENA: Plenty of Fish in the Sea

March 9, 2016 — In the immediate wake of the 2016 Seafood Expo North America, the overwhelming impression is of bounty. As always, there was a plethora of product to sample, with plenty of standout items. Traversing the show floor at the Boston Convention and Exhibition Center this week, Progressive Grocer noted even more breaded/crusted offerings than in past years, with shrimp, crab, clams, calamari, oysters, catfish, cod, tilapia, grouper, haddock and rainbow trout all getting the crunchy treatment, some in the form of bite-sized chunks. Also observed: a continuing trend towards zesty spices, sauces and marinades, with Southwestern flavors – as evidenced by the fish tacos served up by Miramar, Fla.-based Regal Springs, which donated 5 pounds of tilapia for every taco sampled to hunger relief nonprofit SeaShare – and sriracha particularly prevalent.

At the National Fish & Seafood booth, Nancy Peterson, VP of marketing at the Gloucester, Mass.-based company, was particularly excited about the company’s newest product introduction under its Matlaw’s brand: the seven-SKU Big Bag Value line, which Peterson noted offers on-trend flavor, variety and affordable price in clear, super-sized bilingual (English and Spanish) packaging enabling customers to see just what they’re purchasing. Among the products in the convenient frozen line are Shrimp Jalapeño Mac & Cheese Bites, leveraging consumer interest in breaded, bite-sized, spicy items. National Fish & Seafood is considering adding a lobster option to the line, according to Peterson, who adds that the company gets many of its ideas for retail products from items developed for foodservice. “That’s worked very well for us,” she asserted.

Read the full story at Progressive Grocer

Labor Abuse in Shrimp Peeling Sheds in Thailand Showed US Importers Asleep at the Switch

SEAFOODNEWS.COM by John Sackton — December 22, 2015 — The recent announcement by the Thai Shrimp Association that all shrimp peeling will be brought in house by major processors, and that use of third party peeling sheds will be discontinued, is not a ‘win’ for the shrimp industry.

Instead it shows that many have been asleep at the switch, and the safeguards put in place such as audits and certifications, have been inadequate.  However, several US importers say that they had already taken steps to safeguard their supply chain against labor abuse.

Jeff Sedacca, President of the shrimp division of National Fish & Seafood said, “We saw many years ago that Thai safeguards were not adequate, so we took proactive steps to create, implement, and enforce safeguards of our own, including discontinuation of peeling sheds in 2010 and advocating for expansion of fair labor practices required for BAP certification.”

Sedacca says his company has fully committed to the BAP program, and is one of the largest four star shrimp suppliers in the US.

In Thailand, National intends to gain four star certification in the First Quarter of this year, when the new feedmill and hatchery to supply many of their farms gets its certification.  The feed mill and hatchery has been operating this year, but has to build up a production record prior to being inspected by BAP auditors.

This story originally appeared on SeafoodNews.com, a subscription site. It has been reprinted with permission.