Tuna chief found guilty in criminal price-fixing trial

SAN FRANCISCO -- Former Bumble Bee Foods CEO Christopher Lischewski was found guilty Tuesday of directing a scheme to fix canned tuna prices among the three largest packaged seafood companies.

On the first day of deliberating, a federal jury said Lischewski colluded with Starkist Co. and Chicken of the Sea by arranging to increase prices of certain products from 2010 to 2013.

Lischewski was convicted on one count of felony price-fixing in a trial before U.S. District Judge Edward M. Chen. He faces up to 10 years in prison and a $1 million fine.

Federal prosecutors from the Department of Justice's antitrust division presented 11 witnesses, including four company executives who corroborated the existence of the plot.

The conviction is the last in a massive price-fixing investigation that resulted in guilty pleas from Bumble Bee, Starkist and three of the companies' one-time senior vice presidents. U.S. v. Lischewski, 18-CR0203 (N.D. Cal., filed May 16, 2018).

Bumble Bee paid a $25 million fine while Starkist paid a $100 million fine. Chicken of the Sea, which alerted the Department of Justice to the scheme, received immunity in addition to limitations on damages from a series of civil lawsuits in federal and state courts filed by consumers, retailers and distributors arguing they were harmed by the price-fixing.

Two former Bumble Bee executives, Kenneth Worsham and Walter Scott Cameron, agreed to cooperate with federal prosecutors and testify for potential leniency.

Cameron said he was given a "direct order" to collude with Starkist executive Chuck Handford, who also pleaded guilty and testified in the trial, to broker a truce during a price war in the canned tuna industry.

Worsham testified Lischewski had "final sign-off" on agreements coordinating price increases among the packaged seafood companies. He said Lischewski "never objected to anything" and "had contacts of his own at his level of the trade."

Former Chicken of the Sea CEO Shue Wing Chan told jurors he had an "understanding" with Lischewski not to "promote aggressively" to keep prices high.

Defense Attorney Elliot Peters maintained Cameron and Worsham independently arranged and operated the conspiracy.

"We continue to believe strongly in Chris Lischewski's innocence and intend to continue vigorously to pursue justice for Chris," he said in a statement Tuesday.

Bumble Bee spokesperson Jessica Gunn underscored new company leadership. "It's been a challenging time for our company and many in our industry but we're looking forward not back," the statement read.

Bumble Bee, the largest North American packaged seafood seller, filed for bankruptcy Nov. 21. It emphasized "tens of millions of dollars in defense costs," which resulted in it defaulting on some $650 million of debt, according to bankruptcy court filings.

Chen will consider sentencing April 8.