U.S. Attorney Patrick Fitzgerald has brought conspiracy charges against the president of a honey manufacturer from China in an alleged scheme to illegally dump adulterated honey on the U.S. market, and recently announced that the defendant pleaded guilty. The product was apparently shipped through the Philippines and Thailand between 2005 and 2008 to avoid steep anti-dumping duties. While defendant Yong Xiang Yan entered a plea to one count of conspiracy involving the avoidance of more than $625,000 in anti-dumping duties, he acknowledged during the plea hearing that he authorized many other shipments that avoided an additional $3.3 million in duties. Some of the honey imported into the United States was allegedly adulterated with antibiotics, but “[n]either the charges [n]or the plea agreement indicate any instances of illness or other public health consequences attributed to consumption of the honey, nor does it identify any store brands or domestic supply chain of…
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The U.S. attorney for the Western District of Missouri has announced that a Nevada company and its owners entered guilty pleas in federal court “to distributing a tainted ingredient used to make pet food, which resulted in a nationwide recall of pet food and the death and serious illness of countless pets across the United States in 2007.” Sally Qing Miller, her husband Stephen Miller and their company Chemnutra, Inc. reportedly pleaded guilty to some of the charges in a February 2008 indictment, admitting that “melamine was substituted wholly or in part for the protein requirement of the wheat gluten” they imported from China and distributed in the United States and Canada and that “the labeling of wheat gluten was false and misleading.” The Millers are apparently each subject to a sentence of up to two years in prison without parole, fines of up to $200,000 and an order of…
According to a news source, a Las Vegas-based company and its co-owners have agreed to plead guilty to charges that they imported from China melamine-tainted wheat gluten used to make the pet food that purportedly sickened and killed thousands of cats and dogs in the United States and Canada in 2007. More details about the criminal indictments appear in issue 247 of this Update. ChemNutra, Inc. and its co-owners, Stephen and Sally Miller, have apparently reached an agreement with federal prosecutors and will enter their pleas during a June 16, 2009, hearing. The export broker, a Chinese company, allegedly mislabeled 800 metric tons of wheat gluten to avoid inspection in China and did not properly declare the contaminated product when it was shipped to the United States for use in pet food. ChemNutra took delivery of the wheat gluten in Kansas City and then sold it to various pet food manufacturers.…
As anticipated, federal prosecutors have reportedly filed a motion to dismiss a number of charges of aiding and abetting aggravated identity theft against a Postville, Iowa, slaughterhouse, its former executive and a former manager. The action was taken after the U.S. Supreme Court ruled that a conviction under the identity theft law requires a showing that those presenting false identification documents to employers knew they belonged to another real person. More information about the case and its effect on charges arising from the immigration raids that occurred in Iowa in 2008 appear in issue 303 of this Update. According to a news source, prosecutors knew they would be unable to prove that the undocumented immigrants who worked at an Agriprocessors, Inc. facility knowingly used identification papers belonging to others, and thus, they would be unable to prove that the managers and executives were guilty of aiding and abetting. After nearly…
The U.S. Supreme Court recently ruled that a conviction under the identity theft law requires a showing that those presenting false identification documents to employers knew they actually belonged to another real person. According to Justice Stephen Breyer, writing for the unanimous Court, the law was intended to crack down on classic identity theft, for example, where a defendant uses another person’s information to get access to that person’s bank account. Prosecutors have been using the law, which calls for a mandatory prison term, against immigrant workers to get them to plead guilty to lesser immigration charges and accept prompt deportation. After the Court issued its ruling on May 4, 2009, the manager of a meatpacking plant in Postville, Iowa, raided in May 2008, sought to withdraw her plea to a charge of aggravated identity theft for allegedly helping illegal immigrants get jobs at the plant with documents she knew…
Judge Richard Posner, writing for a Seventh Circuit Court of Appeals panel, has determined that the government failed to prove that the defendant misbranded food by changing the “best when purchased by” date on bottled salad dressing that he then resold. U.S. v. Farinella, Nos. 08-1839, 08-1860 (7th Cir., decided March 12, 2009). A jury convicted the defendant of wire fraud and of introducing into interstate commerce a misbranded food with intent to defraud or mislead, and he was sentenced to five years of probation, including six months of home confinement, and to pay a $75,000 fine and forfeit his gains in excess of $400,000. According to the court, the defendant bought 1.6 million bottles of Henri’s Salad Dressing in May 2003, and they were labeled with “best when purchased by” dates ranging from January to June 2003. The defendant resold the dressing in discount stores, but pasted over the…
Federal investigators seeking to crack down on corruption in California’s tomato-processing sector have apparently secured guilty pleas from two industry employees, one with a tomato paste supplier and the other with a processed tomato purchaser. Jennifer Dahlman, who worked for a California company under investigation for alleged bribery, price-fixing and mislabeling, reportedly pleaded guilty to causing the introduction of adulterated and misbranded food into interstate commerce with intent to defraud. Dahlman apparently mislabeled products that should have been discarded because of high mold content, purportedly at the direction of company managers, thus giving her company an unfair advantage over competitors and leading to increased consumer prices for processed tomato products, such as sauces, soups and salsas. While she is cooperating with authorities, Dahlman faces up to three years in prison. According to U.S. attorneys involved in the investigation, the mislabeled products posed no health hazard to consumers. James Wahl, who formerly…
Video footage of former Aviagen Turkeys, Inc. employees allegedly abusing birds has reportedly led to criminal indictments for animal abuse. The People for the Ethical Treatment of Animals (PETA) apparently caught three turkey farm employees in the act, and 19 counts, including 11 felony charges, for cruelty to birds have been brought against them. Alabama-based Aviagen Turkeys reportedly fired all three workers for violating company policy. They could face significant jail time and fines if convicted. See meatingplace.com, February 9, 2009.
According to a news source, former Sanlu Group chairwoman Tian Wenhua has appealed the life sentence she received after she entered a guilty plea to charges arising out of the melamine-tainted milk scandal in China that sickened hundreds of thousands of children and led to a number of deaths. Tian’s lawyer reportedly contends that his client did not make the decision to sell the tainted milk and that the Shijiazhuang Intermediate People’s Court had insufficient evidence to support a conviction for manufacturing and selling fake or substandard products. The appeal will be heard by the Higher People’s Court of Hebei Province. See Jurist, February 1, 2009.
FDA has reportedly detected the industrial chemical melamine and its byproduct cyanuric acid in additional cans of U.S.-manufactured infant formula, but stressed that the levels are below the safety threshold set for young children and infants. Four of the 89 infant formula products tested by FDA contained trace amounts of melamine or cyanuric acid, which are used during the manufacturing process as disinfectants and in some food packaging. FDA and other food safety experts have apparently stated that this trace contamination most likely occurred during processing and not as the result of intentional adulteration. See Food & Water Watch Blog, January 5, 2009; The Associated Press, January 7, 2009. Meanwhile, Chinese courts started criminal trials for six cattle farmers and milk collectors accused of making melamine protein powder and adding it to raw milk sold to Chinese dairies, including the government-owned Shijiazhuang Sanlu Group Co. Sanlu recently declared bankruptcy as a…
