Carib Sea in deep doo doo.... OUCH!

JustDavidP

Non-member
From: http://www.usdoj.gov/usao/fls/PressR...061108-04.html

FORT PIERCE COMPANY AND ITS PRESIDENT PLEAD GUILTY AND ARE SENTENCED FOR ILLEGALLY IMPORTING CORAL ROCK INTO THE UNITED STATES

November 8, 2006

FOR IMMEDIATE RELEASE

R. Alexander Acosta, United States Attorney for the Southern District of Florida, Eddie McKissick, Resident Agent in Charge, U.S. Fish & Wildlife Service, Hal Robbins, Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, and Jesus Torres, Special Agent in Charge, Immigration and Customs Enforcement, announced that Carib Sea, Inc., a Fort Pierce-based aquarium supply company, and Richard Greenfield, 46, of Fort Pierce, pled guilty and were sentenced in federal District Court on November 7, 2006, in connection with the illegal importation of more than 42,000 pounds of protected coral rock from Haiti to the United States. Both defendants were charged in connection with a shipment that arrived in March 2006, contrary to the laws of the United States and an international treaty intended to protect threatened and endangered species of wildlife, all in violation of the federal Lacey Act, Title 16, United States Code, Sections 3372 and 3373.

United States District Court Judge Marcia G. Cooke accepted the guilty pleas of the two defendants and proceeded to immediate sentencing. Carib Sea, Inc. was sentenced to a three year period of court-supervised probation and ordered to make a $25,000 community service payment to the South Florida National Park Trust to assist in funding and enhancing the existing Coral Nursery Program in Biscayne National Park.

Richard Greenfield was also placed on three years probation, and ordered to pay a criminal fine in the amount of $25,000. Additionally, the defendants were held jointly liable for storage and transportation costs exceeding $10,000 which related to the March 2006 seizure and approximately 40,000 pounds of coral rock found and seized by the government at the company?s business location. The defendants are also obligated to publish a notice in three publications related to the aquarium trade, explaining their violation of law and the applicable requirements of CITES and U.S. regulations.
The coral rock involved in this matter, with a market value of approximately $75,000, is being transferred to a non-profit research institution, Harbor Branch Oceanographic Institute, to avoid its use in commerce.

According to the Information filed in this matter and a statement of facts presented in Court, in March 2006, the defendants were involved in the importation of a cargo-container load of coral rock from Haiti. Under a convention known as ?CITES,? the Convention on International Trade in Endangered Species of Wild Fauna and Flora, more than 150 countries have banded together to provide protection to a variety of species in danger of imminent extinction, or which may become so, if trade in their specimens is not carefully regulated. That protection extends to all coral rock, which is an invertebrate within the phylum coelenterate. To legally import such specimens into the United States, the importer must, among other requirements, obtain and present to the Fish & Wildlife Service a valid foreign export permit from the country of origin, or if the country of origin is not a CITES member, such as Haiti, a corresponding document described in U.S. regulations. Neither of the defendants, or their Haitian supplier, possessed or presented the appropriate documentation for the coral in this case at the time of importation

Coral reef destruction has been the subject of intense debate at the meetings of the parties to CITES. Loss of reef habitat, which is one of the most productive and diverse ecosystems, is a world-wide concern. As nurseries for marine species of commercial value, as well as a source of income from recreational fishing and eco-tourists, and a protective barrier for coastlines, a significant effort is underway to preserve the existing reef structures and reverse their decline.

Mr. Acosta commended the coordinated investigative efforts of the Fish & Wildlife Service, the National Marine Fisheries Service, and Immigration & Customs Enforcement, which brought the matter to a successful conclusion. This case is being prosecuted by Assistant United States Attorneys Thomas Watts-FitzGerald.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Technical comments about this website can be e-mailed to the Webmaster. PLEASE NOTE: The United States Attorney's Office does not respond to non-technical inquiries made to this website. If you wish to make a request for information, you may contact our office at 305-961-9001, or you may send a written inquiry to the United States Attorney's Office, Southern District of Florida, 99 NE 4th Street, Miami, Fl. 33132.
__________________
 
ouch. still the fine doesn't seem that stiff, since the mechandise was worth three times that on the "street" and chances are this is not their first shipping container of rock.
 
The fine and sentencing are a joke. Its time our government actually punishes businesses that conduct illegal practices. Basically it boils down to what would be equivalent to a couple hundred dollar fine for one of us non CEO types. Anyone who actually cares about the animals and ecosystems that they simulate in their tanks should boycott any caribsea products, not that that is likely to happen.
 
I agree that the fine is a joke, however, this part:

'The defendants are also obligated to publish a notice in three publications related to the aquarium trade, explaining their violation of law and the applicable requirements of CITES and U.S. regulations.'

Will make them look VERY bad in the eyes of many hobbyists. A serious blow to the reputation of the company.
 
The does not look that large, but when you start thinking of it from a business point of view it is actually not pocket change.

25k personal fine (most likely covered by the company)
10k cost shipping and storage fees in the US
25k community service

There is 60,000 in direct costs: I will guess on the rest for the sake of the argument.

20k in material costs (low ball guess of about .50 /lb for live rock and boxes)
4k in ocean shipping and broker
3k in mandated ads (art, publishing fee, PR review, ect.)
50k in lost revenue/margin (P&L loss from not selling the seized product)
10k legal fees (This would only cover the first few days of court, probably at least 5x this if you think about all the prep work needed)
10k yearly legal fees for court supervision (30k over 3 years)

I think the company is looking at a very real cost of at least 157,000 this year, before you look at things like the advertising to restore their reputation to where it was before this conviction, loss of goodwill, cancelled orders, reduced sales to end users/market share erosion, increased business insurance premiums, future delays in customs (a business under court supervision has all containers inspected), contract violations and the 2 bags of Puku shells I was going to buy this week.

Think about your professional career… You now have a felony conviction; every future employer will have to be told. You’re on probation for 3 years with the possibility of going to jail for anything done at the job, at home or even leaving your probation officer without approval. You could never own a handgun, you have a lifetime conviction for violating a CITES convention signed by 150 countries… good luck with getting visas or getting through customs without a cavity search. Oh, yeah PITA probably has your address by now, no worries.

All said, what CaribSea did is disreputable and damages the industry and trade as a whole. I will be looking for other suppliers when I need something they sell.
 
For those that haven't seen this. Apparantley this was a "technicality". They had permits, but apparently this rock fell into another category. Anthony Calfo contacted them and wrote this (I got this from RC)

quote:
--------------------------------------------------------------------------------
To all - the the above story/issue re: Carib Sea did not make sense to me at face value - the company is so big, so industry friendly... and so smart, etc

So I talked to the company directly for the skinny on it... turns out the matter is as suspected (administrative oversight... non-nefarious, and rather minor IMO):

The gist of it from ems:

------------------------------

The product was our reef bones. It is dead live rock, and a common construction material in Haiti and many other tropical islands. It was a nice looking product when we released it several years back... as I am sure you are aware, all of the laws, and permits for these various resources can be very confusing. We simply did not have the proper permit in place for one container of product of the several we had brought in over the last few years. We now have the correct permit. It’s funny a simple $100 permit cost us upwards of a quarter of a million dollars in fines, legal fees, storage fees, and the product they kept.

Fortunately we learned a lot from this experience. We will continue on our path, helping and donating time, money, and product to research groups and conservation efforts such as our program with the Blue Iguana Recovery Program (www.blueiguana.ky) to help save the Blue Iguana.

People tend to overlook anything good, and focus on the size of the fine and company name.
--------------------------------------------------------------------------------


And a second post:

quote:
--------------------------------------------------------------------------------
so the summary is... much like the unclear (and often unknown by officers themselves) Fish and Wildlife regs that badly jamb up LFS owners importing (and kill animals for the vague paper recs) - Caribsea's oversight was a documentation issue on one among several legal shipments. And their precedent was all legal shipments too.

This reminds me of the thousands (I'm not kidding) of clams that F&W has killed by delaying shipments of AQUACULTURED clams because the import docs did not list the gravel(!) that was stuck under the clamshell (farmers use local aggregate to sometimes grow baby clams).

This is beurocracy folks... not poaching. Caribsea is a good company... please give them a break.

(and for my name/personality... let me state that I have never taken so much as a free sample at a tradeshow or otherwise from this company. My opinion here is unbiased)
--------------------------------------------------------------------------------
 
I'm not sure if what they told calfo is true or not. Other people are insinuating that it in fact was not just a paperwork error. I have a hard time believing that the govt would make them do community service and place "we screwed up" ads for an error on paperwork.
 
I certainly don't know the particulars of this crime, but I wouldn't rely on the convicted company to give me the upfront explanation.

We have a lot of "reef bones" where I work. Wonder if it's from that batch...
The rock in the illegal shipment was all confiscated and given to a research institute.
 
Also, if it was "mined road building material (ground origin)" it wouldn't fall under CITIES. To fall under CITIES, it had to be of the "live rock" origin which is where the permit bit comes in.
 
I was not impressed by the quality of "Reef bones" I got a while back. They were solid rocks with some clam shells imbedded on it.
 
Also, if it was "mined road building material (ground origin)" it wouldn't fall under CITIES. To fall under CITIES, it had to be of the "live rock" origin which is where the permit bit comes in.

It would still fall under CITIES. Haitians have to pull the dead rock up from somewhere. it does not grow on tree's. They are still damaging the reef to pull this dead rock to make roads. If they were making more money from it by selling back to the fish community Fish and wildlife would MOST CERTIANLY make sure it falls under CITIES.

As far as the their excuses to play down the incodent... I'm on the fence still... why would they plead guilty if it was just a "paperwork" error? & why would the fines be so freakin low if it was more than a "paperwork" error? (considering there is a min $50K fine for even touching a sea turtle. let alone import illigal rock) 2 questions that keep me from comming to any sort of personal conclusion to this.
 
Last edited:
Also, if it was "mined road building material (ground origin)" it wouldn't fall under CITIES. To fall under CITIES, it had to be of the "live rock" origin which is where the permit bit comes in.
If you travel to most islands you will see they in fact use reef rubble for construction of walls foundations etc......Heck what is the make up of most islands? Reef rubble, volcanic debri..... Do you think at one time or another that material wasn't live in origin? I think it's BS...no matter how hard they try to police this area stuff is going to slip by that should not have been exported. Holding back shipments due to gravel on clamshells is stupid....I'm sure it has happened too.. Kill livestock because of paperwork & then blame the deaths on the importers/or exporters. And all for a publication in the paper with indictments & the names of the HEROS who stopped it!!!! Bunk is what it is...
 
"administrative oversight"
I like that one ...we just overlooked getting the permits :)
 
As far as the their excuses to play down the incodent... I'm on the fence still... why would they plead guilty if it was just a "paperwork" error?
How a company pleads in a case like this has nothing to do with whether or not theyre guilty, and everything to do with whether or not they think they have a reasonable chance of winning with a not guilty plea. Generally the fines/etc are lower if you plead guilty than if you plead not guilty and lose.
 
Upcoming Events

June 9, 2024
Ben Johnson
Club Meeting

Back
Top