BP accuses two seafood companies of oil spill relief fraud


Sean Murphy, SeafoodSource online editor

Published on
June 10, 2015

The group managing claims paid out by BP over the Deepwater Horizon disaster in the Gulf of Mexico is suing two American companies it claims fraudulently took payments of more than USD 3.1 million (EUR 2.74 million) in lost business claims.

BP has paid out millions of US dollars to claimants suing over the 2010 oil rig explosion and oil spill’s impact on the local seafood industry, but a lawsuit filed in U.S. federal court in Louisiana claims Alliance & Associates and Crystal Seafood Co., of Port Arthur, Texas, filed claims against BP despite going out of business before the disaster occurred.

“In fact, Alliance and Crystal ceased processing seafood at the (Texas) facility no later than September 2009, when a different company began operating at the location,” Claims Administrator Patrick Juneau and Special Master Louis Freeh, filing on behalf of the Deepwater Horizon Economic Claims Center, wrote in their complaint. “Alliance and Crystal never resumed business at the facility after the spill, and thus were ineligible for Business Economic Loss payments.”

The claims center, according to the suit, paid Alliance USD 2.1 million (EUR 1.8 million) and paid Crystal more than USD 1 million (EUR 884,370). The suit demands Alliance and Crystal return the money.

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