Former Bumble Bee Foods CEO indicted for price fixing

A San Francisco federal grand jury on Wednesday indicted the former CEO of Bumble Bee Foods LLC on allegations of conspiring to fix prices of canned tuna from 2010 to 2013.

Christopher Lischewski faces up to 10 years in prison if convicted of the charges. Bumble Bee has already pleaded guilty and been handed a $25 million fine. Three other members of the alleged conspiracy were indicted previously.

John W. Keker, a partner with Keker, Van Nest & Peters LLP in San Francisco who represents Lischewski, wrote in an emailed statement that his client is innocent and expressed his disappointment with the Department of Justice's decision to prosecute him.

"Chris Lischewski is a decent and honorable man, who has lived a hardworking and ethical life. He has been a leader and beacon within the seafood industry for more than twenty-five years," Keker wrote. "When the facts are known and the truth emerges, Mr. Lischewski will be found not guilty, and that vindication will rightfully restore his good name."

Price fixing litigation aimed at companies is common in the Bay Area but the indictment of company leaders is more unusual and suggests antitrust is still a priority in the Northern District under the Trump administration. U.S. v. Lischewski, 18-CR0203 (N.D. Cal., filed May 16, 2018).

"The Antitrust Division is committed to prosecuting senior executives who unjustly profit at the expense of their customers," wrote Assistant Attorney General Makan Delrahim of the Department of Justice's antitrust division in a prepared statement.

"American consumers deserve free enterprise, not fixed prices, so the department will not tolerate crimes like the one charged in today's indictment," Delrahim added.

Prosecutors allege that Lischewski met with other industry leaders in person and through electronic communications to create a price fixing scheme that would limit competition for certain products based on the fishing methods used. They say he used code names to refer to competitors while sharing information on sales, supply and demand with competitors to further the conspiracy.

"This indictment demonstrates the personal accountability of senior leadership at corporations," wrote Special Agent in Charge John F. Bennett in a statement. "The FBI and the Department of Justice will hold corporate leaders accountable for criminal actions that defraud American families."