NEWPORT NEWS, Va. – A Poquson man pleaded guilty last Thursday to charges stemming from his participation in a lucrative conspiracy to violate the Lacey Act and falsely labeling millions of dollars-worth of foreign crab meat as “Product of USA”.
42-year-old Michael P. Casey, was the Vice President for Marketing and Operations of Casey’s Seafood Inc., a wholesale processor of crab meat and other seafood. He pleaded guilty to conspiring with James R. Casey and others to substitute foreign crab meat for Atlantic blue crab. James Casey, the owner and President of Casey’s Seafood, also pleaded guilty and was sentenced in January to a 48-month term of imprisonment.
“By illegally mislabeling hundreds of thousands of pounds of crab meat, the defendant intentionally undermined the local crab processing industry – defrauding customers and, in turn, damaging the public’s trust in an industry that is important to the local economy,” said Jeffrey Bossert Clark, Assistant Attorney General for Environment and Natural Resources Division. “Mr. Casey’s actions are an affrontto those who play by the rules when selling blue crab, and The Department will continue to work closely with its partners to prosecute criminals who flout the rule of law.”
As part of the plea, Michael Casey admitted to knowing that Casey’s Seafood employees were directed to unpack foreign crab meat from containers and re-package that meat into containers bearing the company name and which were labeled “Product of USA.” falsely labeling more than 183 tons of crab meat, which was then sold to grocery stores and independent retailers.
Casey also admitted to aiding and abetting James Casey in selling at least 367,765 pounds of crab meat falsely labeled “Product of USA,” with a total wholesale value of approximately $4,324,916.
“Seafood fraud undermines the economic viability of U.S. and global fisheries, deceives consumers, and threatens the health of those who consume tainted or misidentified seafood products,” said James Landon, Director of NOAA’s Office of Law Enforcement. “This case is a great example of investigative cooperation by state and federal law enforcement to strengthen seafood fraud detection and safeguard the industry and consumers.”
A significant decline in Atlantic blue crab harvests that began in 2010 made it increasingly expensive to purchase live Atlantic blue crab and increasingly difficult to profit from the labor-intensive process of picking meat from live-harvested blue crab. As part of his guilty plea, Casey admitted that, because of this decline, he and the company could not and did not process sufficient quantities of Atlantic blue crab to meet customer demands. To make up the shortfall, the co-conspirators used foreign crab meat to fulfill customer orders. During the periods when the company did not process blue crab—which sometimes lasted three months—the co-conspirators purchased crab meat (not live crabs) from Indonesia, China, Thailand, Vietnam, and other foreign locales.
“U.S. consumers expect the origin of their seafood to be correctly identified. When sellers attempt to deceive the public about their product’s origins, they put the public’s health at risk by introducing seafood of unknown origin,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Office. “When sellers are deceptive about their products’ origins, they deprive the public of important information about their purchasing decisions. We will continue to investigate and bring to justice those who put profits above fair dealing.”
The crab meat from Indonesia, China, Thailand, and Vietnam included meat from Portunus pelagicus, Portunus haanii, and Ovalipes punctatus, which are all Indo-West Pacific species of crab that do not live in the continental waters of the United States. The company also purchased crab meat from Central American sources, which did include Atlantic blue crab, Callinectes sapidus, but also included other species such as Callinectes bocourti, Callinectes bellicosis, Callinectes toxotes, and Callinectes arcuatus.
Casey further admitted that beginning as early as 2010, and continuing through June 17, 2015, he was aware that the company employees had been directed to unpack foreign crab meat from suppliers’ containers, labeling it with domestic blue crab and/or other types of crab, and re-pack that crab meat into Casey’s Seafood containers, all of which were labeled “Product of USA.”
As part of the plea, Casey also admitted that part of the conspiracy was to purchase discounted foreign crab meat, some of which was referred to as “distressed” because it was approaching or beyond its posted “best used by” dates. Casey admitted to knowing that company employees “re-conditioned” the “distressed” crab meat by re-pasteurizing it, and then packaging the “re-conditioned” meat into the company’s containers, which were labeled and sold as blue crab and “Product of USA.” Casey also was aware that employees placed labels with “Product of USA” on containers that concealed labels marked as “Product of China” and “Product of Brazil.”