Dongwon Sued Under False Claims Act for Falsely Obtained Fishing Licenses

A lawsuit against StarKist’s parent company, Dongwon Industries (Dongwon), has been filed under the False Claims Act for making false statements to secure vessel certification and fishing licenses, Undercurrent News announced last week.

Allegedly, Dongwon knowingly submitted false information to obtain documentation allowing two Korean owned companies, Majestic Blue and Pacific Breeze, to receive tuna fishing licenses under the South Pacific Tuna Treaty (SPTT). These licenses are reserved only for vessels registered in the United States and are paid for using U.S. taxpayer dollars.

Jaewoong Kim, former executive of Dongwon, is reported to have registered his two daughters as the managers, in name only, of Majestic Blue and Pacific Breeze. By registering his daughters, whom hold U.S. citizenship, Majestic Blue and Pacific Breeze were able to receive the U.S. licenses needed to fish the profitable zones of the South Pacific. Dongwon is further alleged to have created a false identity under the American-sounding alias “William Phil”, as a fictitious manager when dealing with U.S. officials.

It is also alleged that Dongwon failed to report oil discharge and sea dumping in an attempt to avoid penalties for violating the Act to Prevent Pollution from Ships.

The lawsuit was filed by a private whistleblower under the whistleblower provisions of the False Claims Act. Under the False Claims Act, private parties with knowledge of fraud against the government may sue on behalf of the government and share in the recovery.  The whistleblower may receive anywhere from 15 to 30 percent as their portion of the settlement.

 The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.