FOR IMMEDIATE RELEASE
June 12, 1997

NEW BEDFORD SEAFOOD COMPANIES REACH $1 MILLION SETTLEMENT IN FISHERY FRAUD CASE
Sea Rich Admits Guilt

The Commerce Department's National Oceanic and Atmospheric Administration has finalized an unprecedented monetary settlement of a fisheries enforcement case with Sea Rich Seafoods, Inc. and Atlantic Gem Seafoods, Inc. of New Bedford, Mass., fish dealers charged in April with underreporting more than $1 million in fish and scallops.

"This settlement sends a strong message to federal fisheries dealers that illegal activity will not be tolerated," said NOAA enforcement attorney Chuck Juliand, who handled the case. Both companies have agreed to help with the ongoing investigation of others who may have illegally harvested and/or sold fish and scallops to Sea Rich or Atlantic Gem. "This investigation is still open," Juliand said.

In settling 113 counts of violating fishery management regulations, Sea Rich Seafoods, Inc. admitted guilt and agreed to pay approximately $1 million in fines, and will have its dealer permit permanently revoked. In addition, Sea Rich president Thomas R. Reilly agreed not to obtain any interest in a federal fish dealer permit for seven years and his three fishing vessel permits have been suspended for up to five years.

Charges against Atlantic Gem were dropped. In return, the company will conduct business under new operational and monitoring procedures for up to one year, while the principals attempt to sell the company. If there is no sale by June 30, 1998, NOAA is entitled to permanently revoke Atlantic Gem's dealer permit.

The terms of the settlement are intended to remove Sea Rich from federal fisheries entirely and to encourage the sale of Atlantic Gem to a NOAA-approved buyer. "We got the best of both worlds," said NOAA co-counsel Mitch MacDonald. "The agreement forces this company to pay a heavy penalty while not pushing them into bankruptcy. It also encourages a sale of the company to new owners and better protects the jobs of about 200 people still working at the company."

The fine amount is the estimated value of the illegally handled fish, with the final payments by Sea Rich due upon sale of the company or within two years, whichever comes first.