Bumble Bee ex-CEO sentenced in price-fixing scheme
Ex-CEO is also on the hook for a $100,000 fine
The former CEO and President of Bumble Bee Foods, Christopher Lischewski, was sentenced Tuesday to serve more than three years in jail and pay a $100,000 criminal fine for his role in fixing prices of canned tuna, the Department of Justice announced on Tuesday.
Fmr. Bumble Bee Foods President and CEO Christopher Lischewski
(AP Photo/Lauren Victoria Burke, File)
The sentencing marks the latest development in an antitrust conspiracy that has enveloped the canned tuna industry for several years.
Lischewski was convicted last year on a single count of participating in a conspiracy to fix prices of canned tuna. Federal authorities alleged that he masterminded the price-fixing scheme with rivals StarKist and Chicken of the Sea to boost profits.
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Three other executives also pleaded guilty and testified against Lischewski in the case. Bumble Bee was sentenced to pay a $25 million criminal fine last year and StarKist was sentenced to pay a statutory maximum $100 million criminal fine. Chicken of the Sea gained prosecutorial immunity when executives from that company blew the whistle on the conspiracy.
Bumble Bee, StarKist, and Chicken of the Sea did not immediately respond to FOX Business' request for comment.
EX-BUMBLE BEE CEO CANNED FOR FIXING TUNA PRICES
U.S. District Judge Edward Chen noted at the sentencing that canned tuna is consumed by many low-income consumers, according to Undercurrent News.
The Judge said, “One has to think, what are the consequences of that, and who suffers?”
Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division said today that this sentence will deter executives from gouging the prices that everyday Americans pay.
“Executives who cheat American consumers out of the benefits of competition will be brought to justice, particularly when their antitrust crimes affect the most basic necessity, food," he said in a statement. "Today’s sentence reflects the serious harm that resulted from the multi-year conspiracy to fix prices of canned tuna.”
BUMBLE BEE TUNA ON THE HOOK FOR BANKRUPTCY AND POSSIBLE SALE
Meanwhile, Lischewski’s lawyers argued throughout the trial and at the sentencing Tuesday that there was no evidence of unfair pricing or overcharges. Lischewski told the Judge Tuesday that he didn’t hurt anyone."I do believe that the evidence we provided showed no harm was done to consumers,” he said.
Lischewski’s lawyers have said they’ll appeal the case. Elliot Peters, a lawyer for Lischewski, did not immediately respond to a request for comment.