Hayward man indicted on charges of smuggling tropical fish
A Hayward man suspected of smuggling tropical fish to buyers in Asia was indicted Thursday by a federal grand jury in San Francisco.
Futseng "Dale" Chen and his company, Sealogic International, Inc. were indicted on charges of smuggling and violations of the Lacey Act, according to the U.S. Attorney's Office.
Lacey Act provisions include prohibiting the export of any fish possessed, transported or sold in violation of U.S. laws.
Chen, 53, is suspected of filing false and fraudulent export records and documents, and failing to file required documents for shipments of live tropical fish from the U.S. to buyers in Asia.
Chen is the owner and chief executive of Sealogic, a tropical fish importer and exporter based on Arden Road in Hayward.
Starting in 2020, Chen and Sealogic didn't properly declare to the U.S. Fish and Wildlife Service shipments of tropical fish being exported to a buyer in Hong Kong, the U.S. Attorney's Office said.
In addition, the indictment charges that at other times Chen and Sealogic filed export declarations with the authorities that were knowingly false.
The export declarations are required by law to ensure wildlife is properly and safely imported into and exported out of the U.S., and to ensure that the U.S. Fish & Wildlife Service can inspect the cargoes and collect appropriate export duties and fees.
Chen was arrested Thursday and appeared in San Francisco federal court before U.S. Magistrate Lisa J. Cisneros. He was released on bond and ordered to appear on Sept. 13 before U.S. District Judge Susan Illston.
If convicted of smuggling goods, Chen faces a maximum sentence of 10 years in prison. If convicted of false labeling under the Lacey Act, he faces a maximum sentence of five years. Additionally, a violation of each statute carries a maximum fine of $250,000 and three years of supervised release, plus restitution and forfeiture.
For a conviction under either charge, Sealogic faces a maximum fine of $250,000 and three years of probation, plus restitution and forfeiture.