In a dramatic turn of events, Quality Poultry and Seafood Inc. (QPS), the largest seafood wholesaler on the Mississippi Gulf Coast, and two of its top managers have pleaded guilty to a major fraud scheme. Federal prosecutors revealed on Tuesday that the company and its executives admitted to a decade-long scheme to pass off cheap frozen fish imports as high-quality, locally sourced seafood.
QPS Substitution Scheme : A Costly Admission
The U.S. Attorney’s Office in the Southern District of Mississippi disclosed that QPS has agreed to forfeit more than $1 million and pay a criminal fine of $150,000. Sales manager Todd A. Rosetti and business manager James W. Gunkel also entered guilty pleas to charges of misbranding seafood, which was a central part of the distributor’s fraudulent activities.
“QPS and its officials orchestrated a complex fraud operation, continuing their deceptive practices even under federal scrutiny,” said Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. Kim emphasized that the mislabeling of seafood undermines local businesses and fishermen who struggle to compete in a market flooded with inferior, imported products.
QPS Substitution Scheme : A Scheme Unraveled
The indictment against QPS, filed in late July, alleges that the company sold fish from Africa, South America, and India as premium Gulf Coast seafood. The imported fish, including Lake Victoria perch and tripletail, were falsely labeled as snapper. Despite a search warrant executed by the U.S. Food and Drug Administration, the fraudulent practices continued unabated.