The U.S. Department of Justice (DOJ) and U.S. Food and Drug Administration (FDA) have announced the latest developments in civil and criminal actions taken against 117 dietary supplement manufacturers and distributors as the result of a year-long investigation into allegedly tainted products. According to a November 17, 2015, DOJ press release, an 11-count indictment alleges that weight-loss and workout supplement manufacturer USPlabs LLC “engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling and then lied about the source and nature of those ingredients.” The indictment claims the products in question were sold to retailers across the nation, with USPlabs asserting that it used natural plant extracts “when in fact it was using a synthetic stimulant manufactured in a Chinese chemical factory.” “The joint agency effort is a testament to our commitment to protecting consumers from potentially unsafe dietary supplements and products falsely…
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The Ninth Circuit Court of Appeals has rejected Stanislaus Food Products Co.’s attempt to revive a lawsuit alleging that several major manufacturers of tin cans conspired to cede the market to a single company, USS-POSCO Industries (UPI). Stanislaus Food Prods. Co. v. USS-POSCO Industries, No. 13-15475 (9th Cir., order entered October 13, 2015). “This appeal, which centers on tin mill products used to package food, teaches that there’s no substitute for concrete evidence,” the decision begins. Stanislaus, a tomato cannery, alleged that UPI, a joint venture of U.S. Steel and POSCO America Steel Corp., conspired with other tin mill producers to allocate the tin can market to UPI and fix the prices of tin mill products. Stanislaus cited the fact that POSCO never entered the western U.S. market as evidence of conspiracy; the court considered the practicality of the allegations and found them lacking. “A scheme like Stanislaus alleges would not…
One week after the sentencing of three Peanut Corp. of America (PCA) executives, two managers have been sentenced to prison for their roles in a Salmonella outbreak linked to nine deaths and hundreds of illnesses. Samuel Lightsey and Daniel Kilgore, former operations managers at PCA’s Blakely, Georgia, plant, were sentenced to three years and six years respectively. “By making sure that the individuals involved in the corporate fraud at PCA were held accountable, I am confident that the message to other executives is clear,” said U.S. Attorney Michael Moore. “Because we all know that it is people who make decisions about what goes on behind the corporate curtain, we’ll be looking to hold those individuals personally accountable when they steer their businesses down the path of fraud. Mr. Kilgore and Mr. Lightsey acknowledged their wrongdoing, and today their sentences reflect not only their acceptance of that responsibility, but also the…
Stewart Parnell, former chief executive of Peanut Corp. of America (PCA), has been sentenced to 28 years in prison following a conviction on federal conspiracy and fraud charges for his part in a Salmonella outbreak that killed nine people and sickened more than 700. U.S. v. Parnell, No. 13-cr-0012 (M.D. Ga., Albany Div., order entered September 21, 2015). “Americans should be able to trust that the food we buy for ourselves and our families is safe,” said Acting Associate Attorney General Stuart Delery in a September 21, 2015, press release. “The sentences handed down today to officials associated with the Peanut Corporation of America demonstrate the consequences for those whose criminal actions threaten that trust by introducing contaminated food into the marketplace. Our prosecution is just one more example of the forceful actions that the Department of Justice, with its agency partners, takes against any individual or company who compromises…
An Idaho federal court has invalidated a state law that criminalized undercover investigations at agricultural manufacturing plants, finding that the law criminalized speech in violation of the First Amendment. Animal Legal Def. Fund v. Otter, No. 14-0104 (D. Idaho, order entered August 3, 2015). The 2014 Idaho statute passed after an animal-rights organization publicized a video recorded during an undercover investigation at a dairy. The statute criminalized “interference with agricultural production,” specifically interference by non-employees who obtain access to a facility by trespass or misrepresentation—or employees who obtain employment by misrepresentation—who then create audio or video recordings without the facility owner’s consent or intentionally cause physical damage to facility operations. The Animal Legal Defense Fund challenged the law on First Amendment and Equal Protection grounds soon after it took effect. The court first detailed the legislative history of the bill, noting the intentions of the bill’s drafters—including the “desire to…
In a recent Associated Press (AP) interview, U.S. Associate Attorney General Stuart Delery warns that the Department of Justice (DOJ) will pursue criminal penalties against companies that sell poisoned food. AP cites the recent prosecution of Peanut Corp. of America executives along with actions against the producers of tainted cantaloupe and eggs as evidence of the federal government’s increased focus on criminal enforcement of food safety laws. Plaintiffs’ attorney Bill Marler reportedly told the news organization that the DOJ’s actions were especially notable because the company executives charged in the prosecutions often did not know that their food products were tainted. “We have made a priority holding individuals and companies responsible when they fail to live up to their obligations that they have to protect the safety of the food that all of us eat,” Delery said. “The criminal prosecutions we bring should stand as a stark reminder of the…
An Iowa federal jury has found William Aossey , the former owner of Midamar Corp., guilty of making false export statements along with conspiracy and wire fraud stemming from the company’s misrepresenta- tion of the source of food exported to Malaysia and Indonesia. U.S. v. Aossey, No. 14-0116 (N.D. Iowa, jury verdict entered July 13, 2015). Aossey was indicted over claims that Midamar bought products from a slaughterhouse not certified to export meat to Indonesia and Malaysia, then removed the facility’s federal establishment number with nail-polish remover and replaced it with the number of a certified facility. Additional charges alleging that the company’s products do not meet halal standards are pending against Aossey’s sons. Issue 572
A Georgia federal court has upheld the convictions of Stewart Parnell, Michael Parnell and Mary Wilkerson, former Peanut Corp. of America (PCA) executives, after an investigation into the defendants’ claims of jury misconduct. United States v. Parnell, 13-12 (U.S. Dist. Ct., M.D. Ga., order entered May 28, 2015). The three were convicted on charges related to a 2008-2009 Salmonella outbreak that sickened hundreds of people nationwide and was linked to nine deaths. After a jury convicted them, the defendants argued that some jury members had conducted outside research, based on allegations made to them by Juror 34. The court rejected their argument, noting, “Throughout the sealed proceedings held on alleged juror misconduct, the court only uncovered one juror who could be termed biased: Juror 34.” Further, “the evidence against the Defendants was overwhelming,” the court said. The defendants’ attorney told media that it planned to appeal the ruling. Additional details about…
An Illinois federal court has sentenced the former president of a Wisconsin cheese company to five days in jail, one year of probation and a $750,000 fine for lying to U.S. Food and Drug Administration inspectors about Queso Cincho de Guerrero cheese imported from Mexico and tainted with E. coli and Salmonella. U.S. v. Zurita, No. 12-0290 (N.D. Ill., sentence entered May 8, 2015). In 2007, Mexican Cheese Producers, Inc. reportedly received tainted cheese returned by retailers. Company workers apparently scraped and washed the cheese, and it was later resold. No illnesses related to the cheese were reported, and the government could not show that company owner Miguel Leal had ordered the workers’ actions, but he pled guilty in 2014 to charges of distributing tainted food and lying about it to federal inspectors. Government prosecutors asked for prison time of 10-16 months. “I don’t think I would have put him…
A Dutchman has reportedly been sentenced to jail after authorities determined that his companies sold at least 336 metric tons of horsemeat labeled as beef in 2013. Willy Selten will serve 2.5 years for forging invoices, labels and declarations and using forged documents to sell meat. The court judgment apparently determined that Selten “contributed to a negative image for the Dutch meat industry and damaged the sector’s interests” because he sold the horsemeat-beef mixture to foreign firms. During his trial, Selten admitted that he was negligent with his administration, but he argued that he is “not the big horsemeat swindler they’re all looking for.” Since 2013, Selten declared bankruptcy and faces damages claims of €11 million. Details about the sentencing of two U.K. men related to falsifying documents and failing to keep adequate records appear in Issue 560 of this Update. Issue 561
