UN International Day for Mine Awareness and Assistance in Mine Action

UN International Day for Mine Awareness and Assistance in Mine Action

DEFICIENT SANITATION PRACTICES LEADS TO INJUNCTION AGAINST SEAFOOD COMPANY

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, March 30, 2015

District Court Enters Permanent Injunction against Los Angeles Seafood Company and Senior Officers to Stop Distribution of Adulterated Products
The U.S. District Court for the Central District of California entered a consent decree of permanent injunction against L.A. Star Seafood Company Inc. of Los Angeles and its corporate officers Sima Goldring and Sam Goldring to prevent the distribution of adulterated seafood products, the Department of Justice announced today.

The department filed a complaint in the U.S. District Court for the Central District of California on Jan. 5, at the request of the U.S. Food and Drug Administration (FDA), alleging that the company’s seafood products are produced under conditions that are inadequate to ensure the safety of its products.  The complaint alleges that L.A. Star Seafood imports, receives, prepares, processes, packs, holds and distributes ready-to-eat smoked and salt-cured seafood, including cold-smoked mackerel and steelhead trout, and pickled herring and sprats.  The complaint also alleges that Sima Goldring and Sam Goldring are L.A. Star Seafood’s corporate officers with the authority and responsibility for preventing and correcting violations of federal law at the company.

In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the federal Food, Drug, and Cosmetic Act (FDCA).  The consent decree requires L.A. Star Seafood to cease all manufacturing operations and requires that, in order for the defendants to resume distributing seafood products, the FDA first must determine that its manufacturing practices have come into compliance with the law.

“L.A. Star Seafood was repeatedly informed that the sanitation practices at its facility were deficient,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The failure to actively plan for and control the presence of bacteria and neurotoxins commonly found in seafood processing facilities can pose a serious risk to the public health.”

According to the complaint, FDA inspections in 2013 and 2014 documented a pattern of insanitary conditions resulting in the presence of Listeria monocytogenes (L. mono).  These insanitary conditions were the result of deviations from current good manufacturing practices, such as not adequately cleaning surfaces and utensils used for cutting fish.  Further, the FDA’s most recent inspection in February and March of 2014 documented the defendants’ failure to have and implement adequate Hazard Analysis and Critical Control Point (HACCP) plans that control Clostridium botulinum (C. bot) and L. mono hazards.  L. mono is the bacterium that causes listeriosis, a serious and sometimes fatal infection for vulnerable groups such as newborns, the elderly and those with an impaired immune system.  Ingestion of the neurotoxin C. bot can cause botulism.  Though the incidence of botulism is rare, its effect is severe.  The disease can cause paralysis or death if not promptly treated.

“Companies and their owners who violate food safety regulations endanger public health,” said Associate Commissioner of Regulatory Affairs Melinda K. Plaisier of the FDA.  “The FDA will continue to take every necessary action to assure the food supply is safe.”

According to the complaint, the FDA documented numerous seafood HACCP and current good manufacturing practice violations when it inspected L.A. Star Seafood’s facility.  The complaint alleges that the company’s products are therefore adulterated within the meaning of the FDCA.  As further alleged, the company was told to take certain precautions while brining fish to control potential C. bot hazards but failed to take appropriate corrective action.  According to the complaint, L.A. Star Seafood failed to adequately clean food-contact surfaces and food manufacturing equipment, utensils and containers to protect against contamination of food, and failed to protect in-process fish products from contamination.  The complaint alleges that the company’s insanitary practices resulted in widespread L. mono contamination and that FDA environmental samples from critical areas of L.A. Star Seafood’s facility, such as the processing-room floor and on food-contact surfaces, tested positive for L. mono.

The government is represented by Trial Attorney Kerala T. Cowart of the Civil Division’s Consumer Protection Branch, with the assistance of Donald Yoo of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Melissa J. Mendoza of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.

UTAH COMPANY SETTLES ALLEGED CLEAN AIR ACT VIOLATIONS

FROM:  U.S. JUSTICE DEPARTMENT
Thursday, March 19, 2015
Utah-Based Washakie Renewable Energy LLC Settles Renewable Fuel Standard Violations

The Department of Justice today filed a stipulation of settlement resolving civil claims against Washakie Renewable Energy LLC (Washakie) for violations of the Renewable Fuel Program under the Clean Air Act.  The stipulation of settlement was filed in the U.S. District Court of the District of Columbia.  A complaint stating the government’s claims was filed at the same time, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and Assistant Administrator Cynthia Giles for the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance.

From January to October of 2010, Washakie generated more than 7.2 million renewable identification numbers (RINs) based upon its production of biodiesel at its Plymouth, Utah, facility.  During that time period, however, Washakie did not produce any biodiesel - at the Plymouth facility or anywhere else.  The biodiesel associated with the 7.2 million RINs would have accounted for a reduction of emissions equivalent to more than 30,000 metric tons of carbon dioxide.

The stipulation of settlement requires Washakie to pay a civil penalty of $3 million.  In addition to the penalty, Washakie has already retired more than 7.2 million RINs by purchasing RINs from other parties.  By doing this, Washakie tried to correct the problem it created by putting invalid RINs on the market.  In order to protect the program's integrity and maintain a level playing field for regulated companies, EPA is pursuing enforcement actions against renewable fuel producers and importers that generated invalid RINs.

“The defendant made quite a profit by failing to adhere to the requirements of the Renewable Fuel Program regulations,” said Assistant Attorney General Cruden.  “The penalty here sends the message that renewable fuel producers will be held accountable for meeting all legal requirements.  The Department of Justice remains committed to taking the profit out of illegal activity.”

“This case is another example of the EPA’s commitment to maintain the integrity of the Renewable Fuel Standard program,” said Assistant Administrator Giles.  “Making sure producers are supporting their claims with production of actual renewable fuels is critical to reducing greenhouse gas emissions that are fueling climate change.”

The Energy Independence and Security Act of 2007 expanded and strengthened the Renewable Fuel Program to encourage the blending of renewable fuels into the motor vehicle fuel supply of the U.S. and thereby reduce the nation’s dependence on foreign oil, help grow the renewable energy industry in the United States, and achieve significant greenhouse gas reductions.   Authorized renewable fuels producers and importers could generate and attach credits – known as “renewable identification numbers” or “RINs” – to renewable fuels, such as biodiesel, that they produced or imported.  Fossil fuel refiners and importers are obligated to obtain RINs each year according to the volume of fossil fuels that they put on the market.  These “obligated parties” must purchase RINs or produce them themselves and they are responsible for the acquisition of valid RINs to meet their renewable fuel quotas.  If transferred RINs are invalid, the transferees are liable for failing to satisfy their obligations.  Because certain companies need RINs to comply with regulatory obligations, RINs have market value.  A RIN is invalid if it incorrectly identifies, among other things, the production facility, or the type of fuel produced, or the volume of fuel produced and the regulations prohibit the transfer of invalid RINs.

Washakie registered with the EPA as a renewable fuel producer under the Renewable Fuel Regulations and identified its facility in Plymouth as a renewable fuel production facility.  EPA initially discovered these violations during an inspection of Washakie’s Plymouth facility in 2010.  EPA uncovered additional information concerning the violations in Washakie’s response to information requests and further investigation.  There is no evidence that Washakie produced any biodiesel anywhere during the period covered by the complaint.

4TH SHIPPING EXEC PLEADS GUILTY TO PRICE FIXING ON SHIPPING SERVICES FOR CARS, TRUCKS

FROM:  U.S. JUSTICE DEPARTMENT

Thursday, March 26, 2015

Fourth Ocean Shipping Executive Pleads Guilty to Price Fixing on Ocean Shipping Services for Cars and Trucks

An executive of Japan-based Kawasaki Kisen Kaisha Ltd. (K-Line) pleaded guilty today and was sentenced to 18 months in a U.S. prison for his involvement in a conspiracy to fix prices, allocate customers and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.

According to the one-count felony charge filed in U.S. District Court of the District of Maryland in Baltimore on Jan. 22, 2015, Toru Otoda, who was a general manager in K-Line’s car carrier division, conspired to allocate customers and routes, rig bids and fix prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore.  Otoda participated in the conspiracy from at least as early as November 2010 until at least September 2012.

Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and off of an ocean-going vessel.  Examples of this cargo include new and used cars and trucks and construction and agricultural equipment.

“Today’s sentence reinforces our commitment to hold executives accountable for colluding to fix ocean freight prices,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division.  “This investigation will continue as we seek to prosecute the executives who conspired and the companies that employed them.”

“Price fixing and bid rigging are crimes most people don’t see, but they have a direct impact on everyone’s wallet,” said Special Agent in Charge Steve Vogt of the FBI’s Baltimore Field Office.  “Our goal in the FBI is to expose the back room deals and secret handshakes, and to stop the culture in some businesses that allows these crimes to take place.”

Pursuant to the plea agreement, which the court accepted today, Otoda was sentenced to serve an 18-month prison term and pay a $20,000 criminal fine for his participation in the conspiracy.  In addition, Otoda has agreed to assist the department in its ongoing investigation into the ocean shipping industry.

Otoda was charged with a violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for an individual.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s sentence is the fourth against an individual in the division’s ocean shipping investigation, and the third against an individual from K-Line.  Three corporations have agreed to plead guilty and to pay criminal fines totaling more than $136 million, including K-Line, which was sentenced to pay a criminal fine of $67.7 million.

Today’s plea agreement is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit.

RETAILER FACES OSHA FINES FOR VIOLATIONS INCLUDING BLOCKED EXITS

FROM:  U.S. LABOR DEPARTMENT

Dollar General store allows blocked and locked exits, fire and other hazards, faces more than $83K in fines for repeated safety violations
Discount chain retailer has history of OSHA violations

BOWDON, Ga. — Dollar General Corp. has been cited again by the U.S. Department of Labor's Occupational Safety and Health Administration, this time for four repeated safety violations found in a December 2014 inspection of the Bowdon store at 203 Wedowee St. OSHA initiated the inspection after receiving a complaint and has proposed penalties of $83,050.

Dollar General stores around the country have received more than 40 citations after more than 70 OSHA inspections since 2009. The violations typically found include blocked exits and electrical panels and improperly maintained fire extinguishers.

"Dollar General has been repeatedly cited for blocked exits and electrical panels in stores around the country, but we continue to find these hazards. This appears to be an example of a corporation not sharing safety information with all its entities and employees," said Christi Griffin, director of OSHA's Atlanta-West Area Office. "The company needs to address these issues at its locations immediately."

Repeated citations were issued for the employer failing to ensure that exit doors were unlocked and exit routes and electrical access panels were not blocked by merchandise, display racks or supplies. Store management also failed to have portable fire extinguishers inspected annually.

A repeated violation exists when an employer previously has been cited for the same or a similar violation of a standard, regulation, rule or order at any facility in federal enforcement states within the last five years. This employer was previously cited for these same violations in 2014 and 2010.

With headquarters in Goodlettsville, Tennessee, Dollar General is a discount retailer with more than 100,000 employees nationwide. Workers are typically engaged in stocking shelves and selling merchandise.

The company has 15 business days from receipt of its citations and proposed penalties to comply, request a conference with OSHA's area director, or contest the findings before the independent Occupational Safety and Health Review Commission.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance.

PAYMENT PROCESSORS SETTLE CLAIMS RELATED TO PROCESSING UNAUTHORIZED CONSUMER CHARGES

FROM:  U.S. FEDERAL TRADE COMMISSION 

Payment Processors Involved in I Works Scheme Settle FTC Charges

Order Includes Turnover of $1.3 Million in Cash and Assets

CardFlex Inc., an Independent Sales Organization (ISO), and its principals Andrew Phillips and John Blaugrund, have settled Federal Trade Commission charges that they illegally processed more than $26 million in unauthorized consumer charges on behalf of a company called I Works. The defendants are the last of seven individual and corporate defendants named in the FTC’s suit to settle.

“CardFlex helped scammers drain people’s credit and debit accounts without their permission,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This case shows that facilitating fraud is a bad strategy for payment processors.”

The stipulated court order settling the FTC’s charges ensures that the defendants will no longer process payments for merchants engaged in deceptive conduct. Specifically, the order prohibits CardFlex, Phillips, and Blaugrund from: 1) acting as a payment processor, ISO, or sales agent on behalf of several categories of merchants; and 2) assisting and facilitating clients’ attempts to evade credit card risk-monitoring programs.

In addition, the defendants must screen prospective clients that meet certain criteria, monitor the sales activity of current clients to detect indications of deceptive conduct, and terminate contracts with those engaged in deceptive conduct.

The order also imposes a $3.3 million monetary judgment against CardFlex and Phillips that will be partially suspended based on their current financial condition. Phillips will pay $150,000 and turn over personal assets, including nearly $1.2 million worth of jewelry that the FTC will sell at auction. However, the full judgment will become due, if it is later discovered that the defendants misrepresented their financial condition to the Commission.

Case Background

According to the FTC’s July 2014 complaint, the defendants arranged for a deceptive operation known as I Works to obtain and maintain merchant accounts that allowed it to process illegal credit and debit card payments through the Visa and MasterCard payment networks. The FTC has charged I Works with scamming consumers out of more than $275 million via deceptive “trial” memberships for bogus government-grant and money-making schemes.

The 2014 complaint charged the defendants – CardFlex, Blaze Processing LLC, Mach 1 Merchanting LLC, Phillips, Blaugrund, Shane Fisher and Jeremy Livingston – illegally provided access to payment networks that I Works needed to carry out its deceptive scheme.

In its complaint, the FTC alleged that the defendants knew I Works had been placed on industry lists of high-risk merchants numerous times due to high chargeback rates. Still, the defendants provided I Works with full access to payment networks and did not engage in required underwriting processes when they opened I Works accounts.

The FTC further alleged the defendants helped I Works evade the credit card networks’ fraud monitoring programs to help keep the company’s merchant accounts open. The CardFlex defendants opened nearly 300 accounts in the names of shell corporations on I Works’ behalf, and implemented a system that enabled I Works to divide its sales transactions between 30 separate accounts to avoid reaching the level that they would be monitored by the credit card networks.

Prior Court Settlements

At the same time the FTC filed the complaint in the case, it announced the settlement with Blaze Processing, Mach 1 Merchanting, and Shane Fisher. The stipulated final order against these three defendants prohibits each from acting as a payment processor, ISO, or sales agent for any third parties. The order also contains a $328,607.78 judgment against Fisher, and more than $650,000 in judgments against Blaze Processing and Mach 1. The FTC has collected the judgment against Fisher, while the judgments against Blaze Processing and Mach 1 have been suspended due to an inability to pay.

In January 2015, defendant Jeremy Livingston also stipulated to a court order settling the FTC’s charges against him in this matter. The order against Livingston prohibits him from acting as a payment processor, ISO, or sales agent for third parties. It contains a monetary judgment of $328,467.23, which has been suspended due to his inability to pay. However, the full judgment will become due, if it is later discovered that Livingston misrepresented his financial condition to the Commission.

The Commission vote approving the stipulated final order against defendants CardFlex, Inc.; Andrew Phillips; and John Blaugrund was 4-0-1, with Commissioner Terrell McSweeney not participating. It was filed in the U.S. District Court of the District of Nevada.

NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.