The Justice Department said the sentence is one of the longest imposed by a federal judge for falsely labeling seafood.
U.S. District Judge Philip S. Gutierrez for the Central District of California, sentenced Peter Xuong Lam of Fairfax, Va., who was formerly president of Virginia Star Seafood Corp., and ordered him to forfeit more than $12 million to the government for antidumping duties avoided.
A second importer involved in the scheme, Arthur Yavelberg of Reston, Va., who was president of Virginia-based Silver Seas, was also sentenced last week for his role in the conspiracy to import mislabeled fish to avoid federal tariffs. Gutierrez sentence him to one year of probation.
The Justice Department said the cases against Lam and Yavelberg are part of the an ongoing prosecution of importers and seafood dealers who worked together to import catfish from Vietnam and sell frozen fillets that were falsely labeled as more desirable and more expensive fish.
Virginia Star and International Sea Products imported $15.5 million worth of catfish that was illegally labeled and imported as sole, grouper, flounder, snakehead, channa and conger pike.
'To date, a dozen individuals and companies have been convicted of criminal charges related to the scheme to avoid paying tariffs by falsely labeling fish for import and then selling it in the United States at below-market price,' the Justice Department said.
The organizer of the smuggling ring, Henry Nguyen, remains a fugitive and is believed to be residing in Vietnam, the department added.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now