Blyth and Phelps, Seafood Fraud, Alabama 2023
Feds Crack Down on Seafood Scammers
Two Arizona businessmen have pleaded guilty to serious crimes in federal court in Mobile, Ala., for their roles in buying and selling falsely labeled catfish and tilapia, and for conspiring to import seafood into the United States.
Karen L. Blyth and David H.M. Phelps, both of Scottsdale, Ariz., pleaded guilty to one count of conspiracy, nine counts of violating the Lacey Act, two counts of receiving smuggled goods, and one count of trademark infringement. The Lacey Act is a federal law that prohibits the sale of wildlife, including fish and seafood, that has been illegally imported or harvested.
The defendants admitted to using their company, Consolidated Seafood Enterprises, Inc., to buy frozen fillets of Pangasius catfish from Vietnam, which they knew had been imported into the United States without paying antidumping duties. They then falsely labeled the fish as wild-caught lingcod in order to avoid paying the duties.
According to the indictment, the defendants conspired to buy and sell approximately 283,500 pounds of the falsely labeled fish, resulting in a loss of $145,625 in unpaid antidumping duties.
The investigation was led by the U.S. Fish and Wildlife Service and the U.S. Customs and Border Protection.
A third defendant, John J. Popa, of Lisbon, Conn., had previously pleaded guilty to similar charges.
This case is a reminder that the federal government will pursue anyone who engages in illegal activities, said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division. The defendants in this case have admitted to defrauding American consumers by selling falsely labeled seafood, which can lead to a loss of revenue for honest fishermen and reduce the value of seafood harvested in the wild.
The charges against Blyth and Phelps carry significant penalties, including fines and imprisonment. The case is a testament to the importance of enforcing federal laws that protect American consumers and the environment.
The defendants are scheduled to be sentenced on [insert date].
[Insert Name], Assistant U.S. Attorney, stated that these indictments send a clear message that the Federal Government will aggressively pursue cases of consumer fraud and will continue to protect local seafood consumers and the entire seafood market and industry.
Rules on antidumping duties went into effect in January 2003 for frozen fillets of sutchi, basa, and swai after a Commerce Department investigation found that the product was being sold in the United States at a lower value than it was worth, thereby harming domestic catfish producers. The defendants conspired to falsely label and buy approximately 283,500 pounds of sutchi catfish imported without paying the $145,625 in unpaid antidumping duties.
The case is a prime example of the importance of enforcing antidumping duties, said Raymond R. Parmer, Jr., Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations. Those who conspire to buy and sell such products, knowing they were illegally imported, will face justice and be punished.
The U.S. Attorney's Office for the Southern District of Alabama, the U.S. Fish and Wildlife Service, and the U.S. Customs and Border Protection investigated the case.
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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