Transit scheme costs American Seafoods $9.5M

Two subsidiaries of American Seafoods, a major harvester of Bering Sea pollock, have agreed to pay $9.5 million to settle violations of a shipping law known as the Jones Act, federal prosecutors say.

More details in this press release from the U.S. Attorney's Office in Anchorage.

We've asked American Seafoods for comment.

'Corporate purgatory'

Readers will recall how federal authorities hit Alaska pollock industry players with huge fines, alleging unlawful transport of fish to the eastern United States. Deckboss wrote about the case in the October 2021 issue of Pacific Fishing magazine.

Well, it seems the two sides have reached a settlement.

But the pollock industry is furious government brass still haven't signed off on the deal struck nearly six months ago.

This has left the industry in "corporate purgatory," with the delay in resolving the enormous penalties interfering with corporate transactions, finances, and operations, according to this court filing.

'Years of flagrantly illegal conduct'

The federal government has entered this court filing explaining why it has slapped Alaska pollock industry players with many millions of dollars in Jones Act penalties.

The matter involves a "scheme" to transport seafood unlawfully to the East Coast, and centers on a tiny railroad — about 100 feet long — that "goes nowhere."

'A shock to the industry'

This highly interesting press release just dropped.