East Bay Man Charged With Illegally Smuggling Tropical Fish

SAN FRANCISCO - A federal grand jury in San Francisco has indicted Futseng "Dale" Chen and his company, Sealogic International, Inc. (Sealogic), on charges of smuggling and violations of the Lacey Act, announced United States Attorney Ismail J. Ramsey and United States Fish & Wildlife Service Special Agent in Charge Manisa Kung.

According to the indictment, Chen, 53, of Hayward, California, and Sealogic are charged with knowingly filing false and fraudulent export records and documents and intentionally failing to file required export documents for its shipments of live tropical fish from the United States to buyers in Asia. Sealogic is a Hayward-based tropical fish importer and exporter, and Chen is the owner and chief executive of Sealogic.

As alleged in the indictment, beginning in 2020, Chen and Sealogic knowingly failed to properly declare to U.S. Fish & Wildlife Service the shipments of tropical fish being exported to a foreign buyer in Hong Kong. The indictment further charges that at other times Chen and Sealogic filed or caused to be filed export declarations with the U.S. Fish & Wildlife Service that were knowingly false. Export declarations are required by law to ensure that wildlife is properly and safely imported into and exported out of the United States and to ensure that the U.S. Fish & Wildlife Service can inspect the cargoes and collect appropriate export duties and fees.

Chen was arrested today and made his initial appearance in San Francisco federal court before United States Magistrate Lisa J. Cisneros. Chen was released on bond and ordered to appear on September 13, 2024, at 11 a.m. before United States District Judge Susan Illston.

An indictment merely alleges that crimes have been committed, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of smuggling goods, in violation of 18 U.S.C. § 554(a), Chen faces a maximum sentence of 10 years imprisonment, and if convicted of false labeling under the Lacey Act, in violation of 18 U.S.C. § 3372(d)(2), he faces a maximum sentence of five years imprisonment. 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 a three year period of probation, plus restitution and forfeiture. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

David Ward is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of a three-year investigation by the U.S. Fish & Wildlife Service, Office of Law Enforcement; Homeland Security Investigations; the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and with the assistance of U.S. Customs and Border Protection.