Arnold Maurice Bengis, Lacey Act Violation, New York 2004

A scheme to illegally harvest rock lobster from South Africa and smuggle it into the United States has landed three executives with massive fines. Preet Bharara, the United States Attorney for the Southern District of New York, announced the restitution order against ARNOLD MAURICE BENGIS, DAVID BENGIS, and JEFFREY NOLL.

The restitution order, the largest known in a Lacey Act case, requires the defendants to pay nearly $22.5 million to the Republic of South Africa. This comes after a successful appeal to the U.S. Court of Appeals for the Second Circuit of the District Court's 2007 orders that restitution was not available for crimes prosecuted under the Lacey Act.

According to documents filed in Manhattan federal court and in the U.S. Court of Appeals for the Second Circuit, ARNOLD MAURICE BENGIS was the Managing Director and Chairman of Hout Bay Fishing Industries (PTY) Ltd. in Cape Town, South Africa, and he also exercised control over Icebrand Seafoods, Inc. in Manhattan. NOLL was the Chairman and President of both Icebrand and Associated Sea Fisheries Inc. in New York. DAVID BENGIS was the President of Icebrand Seafoods Maine Inc. in Portland, Maine.

From 1987 to August 1, 2001, the defendants engaged in an elaborate scheme to harvest large quantities of South and West Coast rock lobster, far in excess of applicable quotas. They then exported the illegally harvested lobster from South Africa to the U.S.

The defendants underreported the fish harvested to South African authorities and bribed South African fisheries inspectors to help them carry out their illegal harvesting scheme. They also submitted false export documents to South African authorities to conceal their overharvesting.

The restitution was ordered by U.S. District Judge Lewis A. Kaplan. In addition, Judge Kaplan restrained the defendants from depleting accounts in the Channel Islands to amounts below the approximately $22.5 million restitution to be paid.

Manhattan U.S. Attorney Preet Bharara said, "As today’s order demonstrates, those who violate the environmental laws of another country by illegally taking fish, wildlife, or plants and then import these items into the U.S. will be required to pay back the victims of their offenses."

Related Federal Cases