Jack Ventola, the founder and former president of National Fish & Seafood, has resigned from the Pacific Andes-owned company after receiving a sentence of two years in prison on Friday, 27 April for tax fraud. Even though the company’s founder has been sentenced to time in prison and has stepped down, National Fish leadership remains optimistic about the firm’s future, according to comments shared with SeafoodSource following the court proceedings.
“Jack Ventola resigned today as an employee of National Fish,” said Todd Provost, president of National Fish & Seafood, in a statement emailed to SeafoodSource. “We are grateful to Jack for his contributions to the company over the years.”
U.S. District Court Judge Douglas P. Woodlock also levied a USD 75,000 (EUR 62,000) fine against Ventola in the USD 1 million (EUR 823,000) tax fraud case brought by the U.S. government. Ventola must also pay more than USD 1 million (EUR 823,000) in restitution to the IRS.
Provost downplayed the impact that Ventola’s departure will have on the operations and profitability of National Fish.
“For more than a year now, the daily operations of National Fish have been managed by a very capable management team supported by a chief restructuring officer and other professional advisors,” Provost said. “National Fish’s ongoing business today is profitable and growing, and we have interest in a potential acquisition from several parties. Accordingly, we don’t foresee any material changes in our operations resulting from today’s news and remain very optimistic about National Fish’s future.”
Ventola agreed to make himself available to the company on a consulting basis, according to Provost.
Ventola admitted to conspiring with two other National Fish executives — senior sales executive Richard J. Pandolfo and Michael Bruno, accountant and director —in a scheme involving the retention of a temporary labor company called Continental Labor Team, Gloucester Times reported.
Pandolfo plead guilty in the tax fraud case last April, and was later sentenced to one year of probation, including six months of home confinement. He also was fined USD 5,000 (EUR 4,100) and ordered to pay nearly USD 26,000 (EUR 21,000) to the IRS.
Bruno is set to be sentenced on 7 May.
While Provost is optimistic about the company’s future following the incarceration of Ventola, Pacific Andes executives previously said that prison time for Ventola could signal the demise of National Fish & Seafood.
“The alternative sentence of incarceration, depriving NFS of Mr. Ventola’s day-to-day leadership, would likely cause the demise of NFS,” wrote Ventola’s attorney, Derrelle M. Janey with Gottlieb & Janey, in a recent court document. “This view is held not only by employees, but by the majority shareholder, Pacific Andes International Holdings, which has submitted a letter to the court pleading for Mr. Ventola’s continued ability to work for the company.
Ventola “singularly possesses the experience, knowledge, and employee leadership required for NFS’ survival,” Jessie Ng, managing director and executive director of Pacific Andes, wrote in the letter to the court.
“Jack’s continued employment as a senior executive of National Fish is, in my opinion, essential to our efforts to turn that company around. Furthermore, without Jack’s presence at such a critical juncture, I am deeply concerned about the future of National Fish. The very livelihood of the many employees at National Fish is dependent on the future of National Fish being secured,” NG added.
