Saving Seafood

Justice Department Cracks Down on Fish Fraud

August 21, 2015 — WASHINGTON, DC – A North Carolina seafood processor and wholesale distributor faces a felony conviction, a $100,000 fine, forfeiture of more than 20,000 pounds of shrimp and three years’ probation after Federal prosecutors exposed the company’s shrimp mislabeling scheme.

The National Oceanic and Atmospheric Administration Office of Law Enforcement, the Louisiana Department of Wildlife and Fisheries and the U.S. Attorney’s Office for the Eastern District of North Carolina joined forces to investigate and prosecute Alphin Brothers Inc., in a case that saw the company admit to falsely labeling tens of thousands of pounds of shrimp.

Read the full story at PerishableNews.com

THAI UNION SUSPENDS PUBLIC OFFERING FOLLOWING SUBPOENA FROM U.S. JUSTICE DEPARTMENT

SEAFOODNEWS.COM — July 23, 2015 — Thai Union suspended their public offering late yesterday in the wake of a subpoena from the Department of Justice to Tri-Union Seafoods LLC, a subsidiary of the tuna giant operating in the United States under the brand Chicken of the Sea. They were asked to provide information to the DOJ’s antitrust division, related to their investigation of the packaged seafood industry.

The preferred public offering was intended to raise funds to finance Thai Union’s $1.5 billion purchase of Bumble Bee Seafoods. 

Thai Union has no comment on the DOJ investigation, other than to say that Chicken of the Sea is cooperating fully with the investigation. Chicken of the Sea continues to operate its business as usual.

In a press release issued last night, Thai Union’s Board of Directors said it “believes it is prudent to await additional clarity on this investigation before proceeding with Thai Union’s Preferential Public Offering announced on July 17, 2015. We have informed the Office of the Securities and Exchange Commission of the temporary suspension of Thai Union’s Preferential Public Offering.”

The Company may decide to resume the Preferential Public Offering after further consideration of the situation and consultation with legal advisor. Investors who have completed their subscriptions to date will have their monies returned as soon as practicable within the specified period.

Shares of Thai Union Frozen Products fell as much as 8 percent to 18.4 baht late yesterday, the lowest since October 30, 2014.