Judge imposes one of the longest sentences ever for false seafood labeling

May 20, 2009 Washington, DC A Virginia mans 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 theyre not being victimized by their suppliers. They say no, not me. But in this case were talking about 10 million pounds of fish. Thats a lot of not mes, said Lisa Weddig the Secretary of the Better Seafood Board.

The Justice Departments 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 youre not dealing with a member of the BSB you have the potential to open your business up to the type of fraud weve seen in this case, said Weddig. While its disappointing to see this going on, its 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 industrys partners in the supply chain restaurants, retail operations, producers and processors - to report suppliers suspected of committing economic fraud.

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Contact Information

Gavin Gibbons
(703) 752-8891
ggibbons@nfi.org