Alphin Brothers Inc., Mislabeling Shrimp, North Carolina 2015

WASHINGTON — In a shocking case of seafood deception, North Carolina-based Alphin Brothers Inc., has been sentenced for falsely labeling imported shrimp. The company pleaded guilty to one felony count of making or submitting false records in violation of the Lacey Act.

Pursuant to a plea agreement entered on February 10, 2015, Alphin Brothers Inc., was charged with directing employees and employees of another seafood processing facility to falsely label approximately 25,000 pounds of farm-raised imported shrimp as wild-caught product of the United States. The falsely labeled shrimp was later sold in interstate commerce to customers in Louisiana.

Consistent with the plea agreement, the court sentenced Alphin Brothers Inc., to pay a criminal fine of $100,000 and to forfeit approximately 21,450 pounds of shrimp. The company will also serve three years of probation, including a special condition requiring the company to implement a training program to educate its employees on federal labeling requirements.

Under the COOL regulations, shrimp may be labeled as “product of the United States” only if they were harvested and processed in the United States or by a United States-flagged vessel and have not undergone any substantial transformation outside the United States. Packing, repacking, thawing, freezing, cleaning, peeling, deveining, grading, cooking, or soaking shrimp in sodium tripolyphosphate solution does not constitute a substantial transformation under the COOL regulations.

The Lacey Act is a federal law making it illegal to make or submit any false record, account, or label for, or any false identification of, any fish or wildlife that has been or is intended to be imported, transported, purchased or received from any foreign country, or transported in interstate or foreign commerce. The maximum penalties for a felony violation of the Lacey Act include up to five years of imprisonment and $250,000 in fines for individual defendants and up to $500,000 in fines for corporate defendants.

The case was investigated by the National Oceanic and Atmospheric Administration Office of Law Enforcement, with assistance from the Louisiana Department of Wildlife and Fisheries. The case was prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.

Defendant: Alphin Brothers Inc.
Criminal Charges: Making or submitting false records in violation of the Lacey Act
City and State: North Carolina
Date: February 10, 2015 (plea agreement), no sentencing date mentioned
Sentence: Pay a criminal fine of $100,000, forfeit approximately 21,450 pounds of shrimp, and serve three years of probation.
Dollar Amounts: $100,000 fine, $21,450 pounds of shrimp forfeited.

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