Fish Fraud

Judge imposes one of the longest sentences ever for false seafood labeling May 20, 2009 Washington, DC – A Virginia man’s 63 month federal prison sentence,  for his role in a conspiracy that fraudulently labeled and sold pangasius in the United States, is evidence that fish fraud is a serious crime and not just the cost of doing business. “Some businesses are convinced they’re not being victimized by their suppliers. They say no, not me. But in this case we’re talking about 10 million pounds of fish.  That’s a lot of not me’s,” said Lisa Weddig the Secretary of the Better Seafood Board. The Justice Department’s prosecution centered on “importers and seafood dealers who worked together” to sell “frozen fillets that were falsely labeled as more desirable and more expensive fish.” Prosecutors demonstrated that Peter Xuong Lam of Virginia Star was part of a scheme that imported more than $15 million worth of pangasius that was illegally labeled as, among other things, sole, grouper and flounder. DNA tests revealed the fraud. “If you’re not dealing with a member of the BSB you have the potential to open your business up to the type of fraud we’ve seen in this case,” said Weddig. “While it’s disappointing to see this going on, it’s hearting to see law enforcement stepping up and doing something about it.” The Justice Department says the case was investigated by Special Agents of the National Oceanic and Atmospheric Administration, the Food and Drug Administration's Office of Criminal Investigations and U.S. Immigration and Customs Enforcement. The Better Seafood Board (BSB) was established by the National Fisheries Institute to provide a mechanism for industry’s partners in the supply chain – restaurants, retail operations, producers and processors - to report suppliers suspected of committing economic fraud. ### Contact Information:  Gavin Gibbons (703) 752-8891 ggibbons@nfi.org

CFIA tells importers it’s checking net weights April 2, 2009 Washington, DC – In a letter to seafood importers the Canadian Food Inspection Agency (CFIA) says, as of April first companies “must be in full compliance” with its regulatory requirements, including “net content.” “We brought our continued concerns about net weight fraud to CFIA in January, as they worked on their Strengthened Fish Import Program,” said Patrick McGuinness, President of the Fisheries Council of Canada (FCC.) “They quickly recognized the food safety implications and incorporated, what we consider, a well-crafted plan to increase testing for net weight.” As part of the new effort, foreign firms with a history of poor net weight compliance will receive particular scrutiny. “We’re pleased to see CFIA taking such a thorough and proactive approach on the net weight issue,” said Lisa Weddig, Secretary of the Better Seafood Bureau. “At the same time we’re disappointed that our own Food and Drug Administration (FDA) has failed to recognize the importance of this issue and devote needed resources to it.” CFIA’s short-weight inspection initiative will not only increase inspections but investigate specific short-weight complaints. “The Agency is dedicated to this project and has committed to meet the FCC Short- Weight Committee periodically to review the progress,” said McGuinness. “We appreciate the FDA’s need for more resources but with $650 million worth of food safety funding in place we would hope they could find a way to allocate a few dollars to crack down on this fraudulent activity,” said Weddig. The Better Seafood Bureau (BSB) was established by the National Fisheries Institute to provide a mechanism for industry’s partners in the supply chain – restaurants, retail operations, producers and processors - to report suppliers suspected of committing economic fraud. ### Contact Information:  Gavin Gibbons (703) 752.8891 ggibbons@nfi.org