NOAA 97-R127
                                    
Contact:  Teri Frady             FOR IMMEDIATE RELEASE
          Scott Smullen          4/24/97

NEW BEDFORD FISH CORPORATIONS CHARGED IN
FISHERY FRAUD CASE


$4.7 million and dealer permit revocation sought

The Commerce Department's National Oceanic and Atmospheric Administration Monday charged two Massachusetts corporations, Sea Rich Seafoods Inc. and Atlantic Gem Seafoods Inc. of New Bedford, Mass., with illegally handling more than $2 million worth of fish and scallops.

In addition, government claims that the corporations interfered with lawful investigation of their activities and colluded with various independent fishing interests to hide and profit from illegal fishing activity. Investigation of other violators associated with the case is ongoing.

NOAA is seeking $4.7 million in penalties and will also seek revocation of the dealer's permit held by the alleged violators. Such a revocation, if granted, would effectively bar these corporations and their principals from purchasing seafood from fishing vessels operating in federal waters throughout the United States.

Both groundfish and scallop management rules were allegedly violated by these actions. These stocks have been seriously overharvested and are currently managed under recovery plans. The alleged violations undermine several primary conservation tools, including required dealer reporting of all landings, limits on days spent fishing for groundfish and scallops, and possession limits for groundfish on vessels that are scalloping.

"Putting these fishery recovery plans in place has taken an enormous effort on the part of industry and the government. We must not allow that recovery to be jeopardized by individuals who operate illegally," said Andrew Rosenberg, regional administrator of the National Marine Fisheries Service, the agency charged with building sustainable fisheries.

"NOAA will continue to vigorously prosecute those who are stealing from people who abide by the rules," said Mitch MacDonald, one of two NOAA attorneys prosecuting the case. "Resource protection can only be achieved through the application of strong enforcement measures," added Charles Juliand, co-counsel and senior NOAA attorney prosecutor.

NOAA alleges 113 violations were committed over the course of nearly 18 months, beginning in March 1994. The two corporations have been charged with 76 counts of false and non-reporting purchases of fish and scallops, 20 counts of buying fish and scallops illegally retained by fishing vessels, and 17 instances of interfering with an investigation by not providing investigators with the names of fishing vessels from which it purchased fish and scallops.

The investigation, conducted by NMFS special agents, began with the seizure of dealer reports and records in May 1995 during a routine investigation. On Nov. 25, 1995, NMFS special agents executed a search warrant at the corporations' premises at 7 Conway St. in New Bedford and seized, among other records, trip receipts and cash ledgers.

Because of non-reporting and false reporting, the precise scope of the illegal activities was difficult to uncover. However, a review of the trip receipts and cash ledgers revealed that the corporations allegedly failed to report approximately 724,558 pounds of fish and scallops with an approximate wholesale value of $1,296,140. The entire wholesale value of trips on which a reporting, illegal purchase, and/or interference violation allegedly occurred totalled approximately $2,913,695 (representing approximately 1,156,710 pounds).

Sea Rich Inc. and Atlantic Gem Inc. have recently reported annual sales of $40 million. Dunn and Bradstreet for 1996 says the company employs 200 persons. The corporations have 30 days from April 21, 1997 to request a hearing in front of an administrative law judge. Fishery violations are civil, not criminal matters. Decisions of the administrative law judge can be appealed to the NOAA Administrator and through the federal courts.