Articles Tagged with fish fraud

solar-fish-300x225Solar Fish was reported by FTI Consulting to have received a payment of $355 million from six different parties. While on the surface it comes off as a simple financial transaction, this payment is suspected to be for the sale of a number of Russian fishing firms that the company controlled in secrecy.

Solar Fish is a company that has previously been at the center of trade finance fraud that went above $5 billion. Now caught up in this new scandal, there is a risk of deep reprehension.

The $354.5 million the company received from the six parties was exchanged between Jan. 28, 2013 and Feb. 5, 2013, with a strong chance this was from the sales of a pollock and herring catching firm, now known as Russian Fishery Company (RFC).

food and customs fraudAccording to a new study by Oceana, a large portion of the fish consumers purchase are mislabeled. In fact, during their study, Ocean found that 21% of the species they tested were mislabeled, and were often substituted by a cheaper or endangered species to the desired fish. Surprisingly, large grocery store chains were less guilty of this mislabeling compared to smaller markets and restaurants. While this study may come as a shock, it is not the first time that fish fraud of this nature has been investigated.

The conservation group, Oceana, has been testing seafood for nine years, and previous studies have resulted in similar reports. Beth Lowell, the deputy vice president of Oceana stated, every time we do a study, we think, ‘maybe we will no longer see a problem,’ but we keep finding it, and we know it’s having an impact on our oceans,”. Given the results of subsequent fish studies, Oceana hopes that the government with increase its regulations on seafood entering the United States. However, previous attempts have not offered much improvement.

In 2014, the US Government Task Force on Combating Illegal, Unreported and Unregulated Fishing and Seafood Fraud was created. Based on the suggestions and finding of this task force, eventually the Seafood Important Monitoring Program was set in place in 2018. Also known as SIMP, this program enforces the reporting of thirteen fish species when caught, including popular species like red snapper, swordfish, tuna, and king crab. Yet, fish fraud remains a prevalent problem.

fish fraudFood fraud is the act of mislabeling an edible item in order to sell cheap alternatives for a higher price, and it costs the industry around $35 billion a year. Out of all food items for sale, the easiest victim of fraud is the seafood market. This is not only due to its increasing popularity stirred by the sushi craze, but also do to where Americans receive this massive amount of fish from. Nearly 90%, or 6 billion pounds per year, of the fish eaten annually by Americans is imported, which makes it extremely susceptible to overlooked mislabeling and fraud. This is all according to reports from the Food and Agriculture Organization of the United Nations.

The most recent findings of this fishy food fraud come from the office of the New York Attorney General. Spending the last year conducting thorough research into the subject of fish in the nation, the New York AG’s office bought seafood at 29 supermarket brands across 155 different locations. The list of fish bought included snapper, grouper, cod, wild salmon, halibut, sole, striped bass, and white tuna, assuring that the most commonly bought fish where investigated. The results were less than satisfactory after DNA testing at the Ocean Genome Legacy Center, a laboratory at Northeastern University, found that many were mislabeled. The results including 27.6% of samples sold as wild salmon, 67% of red snapper, and 87.5% of lemon sole, being marked as fish fraud. This report also shows that two-thirds of the entire state’s supermarkets had at least one occurrence of fish mislabeling. That being said, fish fraud is nothing new.

Many citizens who are concerned about the quality of their food, or the quality of their health, may recall back in 2013 when the nonprofit ocean protection group Oceana released their findings concerning the tuna sold in restaurants and grocery stores. Oceana took a nationwide sample and found that 59% of what was categorized as tuna, was, in fact, an unappealing escolar. Escolar is not only a less appetizing alternative to tuna, but it also can lead to some unpleasant health issues such as oily rear leakage. Sadly, this was only the second largest misrepresentation of seafood in the nation, behind the time 87% of snapper was misrepresented as any of six other species. Oceana also conducted one of the biggest seafood fraud investigations from 2010 to 2012 and found that based on U.S. Food and Drug Administration guidelines, 33% of the samples analyzed were mislabeled. Basically, this is no fluke, but as unsettling as this all may sound, there is a light at the end of the tunnel.