Packer Found Guilty of Falsely Labeling Frozen Fish from China
The Justice Department has announced that on April 8, 2011, Stephen Delaney, president of South Shore Fisheries in Massachusetts, was found guilty of falsely labeling frozen fish fillets from China, in violation of the Lacey Act and the Food, Drug, and Cosmetic (FD&C) Act for misbranding seafood.
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Fish Fillets were Reboxed & Relabeled to Change Species and Country of Origin
According to trial evidence, Delaney, would take frozen fish fillets out of cold storage and rebox and re-label the fish for various seafood dealers. At the direction of the dealers, Delaney would take the frozen fish from one box, place it into a new box and place a new label on the box. This enabled him to, through a change of label, change the species and/or country of origin of the fillets.
Delaney Relabeled Chinese Fish as Other Fish Products from Canada, U.S., Etc.
Court documents show that Delaney changed approximately $203,000 worth of mostly sole fillets from China into mostly flounder fillets from Canada, the U.S., and other countries. In one instance, the records show that Delaney took fillets from boxes labeled as product of China and changed it into product of Holland and Canada while leaving some as product of China. Another record shows such product also changing from a 4 oz. label to a 5 oz. label.
The jury additionally found that, in or about April 2009, Delaney falsely labeled approximately $8,000 worth of frozen fillets of pollock from China as cod loins from Canada. Evidence at trial established that the price of cod was approximately $1.00 per pound higher than that for Alaska pollock. The labeling of pollock as cod is identified by the Food and Drug Administration (FDA) on the list of examples of substituted seafood and economic fraud on its website.
Delaney Convicted on Misdemeanor Violation of FD&C Act
Delaney was also convicted on one misdemeanor violation of the FD&C Act for misbranding seafood. Specifically, the jury found that Delaney sent into interstate commerce approximately $203,000 worth of frozen fish fillets, that were falsely and misleadingly labeled as products of Canada, Holland, Namibia and the U.S., when they were actually a product of China.
Could Face Maximum of 6 Yrs in Jail, Fines up to $350K
Delaney faces a statutory maximum of five years in jail and fines of up to $250,000 for his conviction on the felony false labeling charge. He also faces a statutory maximum of one year in jail and fines of up to $100,000 for his conviction on the misdemeanor misbranding charge. His sentencing is scheduled for June 8, 2011.
This prosecution is one of a number over the past few years targeting fraud in the seafood industry.
(See ITT's Online Archives or 03/30/11 and 01/25/11 news, 11033025 and 11042501, for BP summaries of related Lacey Act violations.)