Lonnie and Shelley Ray Charged in Illegal Seafood Conspiracy

Gulfport, Miss. – Lonnie M. Ray and Shelley H. Ray, the principal officers of Cowart Seafood, Inc. of Bay St. Louis, Mississippi, are facing federal charges in a sprawling conspiracy to violate the Lacey Act, a federal statute that bars the sale of fish taken in violation of state law. The indictment, unsealed today, marks the culmination of a multi-agency crackdown on a seafood black market allegedly operated from the Gulf Coast straight into Louisiana distribution hubs.

Lonnie Ray, president of the company, and Shelley H. Ray, its secretary/treasurer, were charged not only with conspiracy to violate the Lacey Act but also with individual counts tied to specific interstate sales. On March 20, 2015, the pair sold red drum to Kenney Seafood, Inc. in Slidell, Louisiana. Then, on May 12, 2015, they moved red drum and spotted seatrout to the New Orleans Fish House—transactions now under federal scrutiny for bypassing Mississippi’s mandatory reporting system.

According to the indictment, Mississippi seafood dealers must file trip tickets with the Department of Marine Resources for every commercial purchase. The Rays allegedly ignored the law, failing to submit records while keeping shadow logs of actual sales. Worse, they’re accused of buying fish from recreational fishermen—flatly illegal under state code. On May 12, 2015, Lonnie Ray purchased 75 pounds of red drum and 78 pounds of spotted seatrout without collecting a single piece of required documentation. Hours later, he shipped seven red drum and 33 spotted seatrout to Louisiana.

The investigation turned up more than falsified fish records. On June 17, 2015, during a warrant-led raid on the business and residence, federal agents seized an Essex SX Gun Works 12-gauge double-barrel shotgun with a barrel shorter than 18 inches—a weapon illegal under federal firearms law. Lonnie Ray now faces a separate charge of unlawful possession of a short-barreled shotgun, exposing him to up to ten years in prison, a $250,000 fine, and three years of supervised release.

For the conspiracy and each Lacey Act violation, both defendants face up to five years in prison, a $250,000 fine, and three years of supervised release per count. The case was jointly announced by U.S. Attorney Gregory K. Davis, Acting Assistant Director Manny Antonaras of NOAA, Special Agent in Charge Louis Santiago of the U.S. Fish and Wildlife Service, Keith Davis of the Mississippi Department of Marine Resources, and ATF Resident Agent in Charge Jason Denham. “This case demonstrates the value of a combined investigative effort,” Antonaras said.

“The Department of Justice will continue to vigorously prosecute those individuals who jeopardize our nation’s fisheries by providing a market for illegally caught fish,” said U.S. Attorney Davis. The Rays made their initial appearance before U.S. Magistrate Judge Robert H. Walker in Gulfport. As the seafood trade feeds millions, federal authorities are sending a clear message: fraud on the water won’t wash in court.