‘Damning’ email debated in tuna price fixing trial

SAN FRANCISCO -- The top executive of a tuna supply company recounted Monday a 2012 meeting with former Bumble Bee Foods LLC CEO Christopher Lischewski in which he allegedly admitted his sales team was colluding with competitors to fix the prices of packaged seafood.

Federal prosecutors presented an email Tri Marine CEO Renato Curto sent to his executive team after the discussion, detailing how Bumble Bee executives and the competition were "talking constantly" and have been in "good communication about how to go to market intelligently."

Lischewski, who resigned as CEO of Bumble Bee in 2018, is on trial over accusations he masterminded the scheme across three major canned tuna producers, including StarKist Co. and Chicken of the Sea. He faces up to 10 years in prison if convicted.

Bumble Bee pleaded guilty to price-fixing in May 2017 and paid a $25 million fine.

U.S. District Judge Edward Chen is presiding over the case.

Keker Van Nest & Peters attorneys representing Lischewski sought to exclude the email by Curto because he was "selectively recounting a social conversation over drinks based on his subjective interpretation and frail memory" of the conversation, according to court filings.

Department of Justice attorney Manish Kumar argued in a motion to allow the evidence that the "admission was so damning it shocked Curto, prompting him to write 'Hello! Can I talk to someone in the DOJ?'"

Although Curto editorialized the summary of his discussion with Lischewski in the email, Chen admitted the email, given "it was kept in course of regularly conducted activity of business."

Elliott Peters, representing Lischewski, challenged Curto's memory and characterization of the meeting.

"This is you putting your own spin on it, and you're even trying to be a little funny, aren't you?" Peters asked.

After Curto responded he "may have misunderstood," Peters asked whether he was speculating.

"What I wrote there is what I believe I remember," Curto said. "I'm not speculating. I may not remember correctly, but that's what I remember."

The three companies colluded to fix canned tuna prices from 2010 to 2013, and Lischewski led the conspiracy, according to the government's indictment. U.S. v. Lischewski, 18-CR0203 (N.D. Cal., filed May 16, 2018).

Following up on testimony from co-conspirators to the scheme last week, a one-time Starkist Co. sales executive admitted he colluded with Bumble Bee Foods LLC executives.

Stephen Hodge corroborated he discussed with former Bumble Bee executives Walter Scott Cameron and Kenneth Worsham about when and by how much they would increase the prices of certain products.

Cameron, one of the government's key witnesses to the conspiracy, testified last week Lischewski threatened him not to aid federal prosecutors in their investigation into the company. He said his former boss told him "the company's got your back as long as you do the right thing and don't cooperate."

Hodge, Cameron and Worsham entered into plea agreements with federal prosecutors and agreed to cooperate in the antitrust division of the Department of Justice's investigation for reduced sentences.

Dongwon Enterprise-owned StarKist Co. was ordered to pay $100 million in Oct. 2018 after pleading guilty to felony price-fixing charges.

Tri-Union Seafoods, owner of Chicken of the Sea, which alerted federal prosecutors to the scheme, traded cooperation for immunity.