MOBILE, Ala. (AP) — Two Arizona business executives have pleaded guilty to conspiring to defraud consumers by mislabeling foreign fish shipped to Mobile and then selling them in Alabama and Florida as more expensive catch.
Karen L. Blyth and David H.M. Phelps entered their pleas Monday shortly before they were scheduled to go on trial in federal court in Mobile.
A federal judge must still approve the plea agreements at a sentencing hearing May 4, but they call for Blyth to serve two years and nine months in prison and for Phelps to serve two years.
Blyth, of Paradise Valley, Ariz., was president and part owner of now-closed Consolidated Seafood Enterprises in Phoenix. Phelps, of Scottsdale, Ariz., was vice president and part owner. They also held the same titles and were part owners of Reel Fish and Seafood in Pensacola, Fla.
Phelps' attorney, Gordon Armstrong, told the Press-Register that they sold their interest in the Pensacola company in 2006 and their Arizona business closed a few years later. Court records show both filed personal bankruptcies.
Court records also show they were under investigation for several years before being indicted in January. They pleaded guilty to conspiracy, false labeling and misbranding fish imported to the United States.
In their guilty pleas, the two executives admitted that 283,500 pounds of Vietnamese catfish was shipped into Mobile and falsely distributed as sole. The fish contained malachite green, a chemical compound that U.S. law prohibits in food.
The also admitted importing 101,078 pounds of Vietnamese catfish that was distributed as grouper and sole, selling 25,000 pounds of Lake Victoria perch as grouper and snapper, and causing employees at Reel Fish and Seafood to mislabel foreign farm-raised shrimp as wild-caught United States shrimp.
Prosecutors said the falsely labeled products were sold primarily in Alabama and Florida.
"These prosecutions should send a clear message that instances of consumer fraud will be vigorously prosecuted and that this U.S. attorney's office will continue to protect local seafood consumers and all components of the local seafood and industry," U.S. Attorney Kenyen Brown said.
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Information from: Press-Register, http://www.al.com/mobileregister.
