(VICT) 3 Companies Indicted in Pet Food Case

  • From: "Shelley L. Rhodes" <juddysbuddy@xxxxxxxxxxxx>
  • To: <GDUI-Friends@xxxxxxxxxxxxxxx>, <gdum-l@xxxxxxx>, <nagdu@xxxxxxxxxx>, "Alumni Association Board Members" <AlumniAssociationBoard@xxxxxxxxxxxxx>, <gdblounge@xxxxxxxxxxxxxxx>, <vi-clicker-trainers@xxxxxxxxxxxxx>
  • Date: Thu, 7 Feb 2008 09:07:36 -0500

Sent from Express News
KANSAS CITY, Mo. - Two Chinese businesses and a U.S. company were indicted 
Wednesday in the tainted pet food incidents that killed potentially 
thousands of animals last year and raised worries about products made in 
China.

Xuzhou Anying Biologic Technology Development Co.; Suzhou Textiles, Silk, 
Light Industrial Products Arts and Crafts I/E Co.; and Las Vegas-based 
ChemNutra Inc. were charged in two separate but related indictments.

The U.S. attorney's office in Kansas City said the U.S. Food and Drug 
Administration has received consumer reports suggesting 1,950 cats and 2,200 
dogs died after eating food contaminated with the toxic chemical melamine.

U.S. Attorney John F. Wood said authorities haven't been able to 
substantiate all those reports, but "as for pet deaths, we think it's in the 
thousands."

One of the indictments charges Xuzhou Anying Biologic, located in China's 
Jiangsu Province, and Suzhou Textiles, in Suzhou, China, with 13 felony 
counts of introduction of adulterated food into interstate commerce and 13 
felony counts of introduction of misbranded food into interstate commerce.

The indictment also names Mao Linzhun, Xuzhou's owner, and Zhen Hao Chen, 
Suzhou's president.

ChemNutra and company owners Sally Quing Miller, a Chinese national, and her 
husband, Stephen S. Miller, were charged with 13 misdemeanor counts of 
introduction of adulterated food into interstate commerce, 13 misdemeanor 
counts of introduction of misbranded food into interstate commerce and one 
felony count of conspiracy to commit wire fraud.

The indictments allege that Suzhou Textiles, an export broker, mislabeled 
800 metric tons of tainted wheat gluten manufactured by Xuzhou to avoid 
inspection in China. Suzhou then did not properly declare the contaminated 
product it shipped to the U.S. as a material to be used in food, the 
indictment says.

It also says the shipment was falsely declared to the Chinese government in 
a way that would avoid a mandatory inspection of the company's plants.

"The defendants intended to deceive the Chinese government in addition to 
consumers," Wood said.

According to the indictment, ChemNutra picked up the melamine-tainted 
product at a port of entry in Kansas City, then sold it to makers of various 
brands of pet foods. The indictment alleges that Xuzhou added the melamine 
to artificially boost the protein content of the gluten to meet the 
requirements specified in Suzhou's contract with ChemNutra.

Wood said adding the melamine, which would allow it to pass chemical 
inspections for protein content, was cheaper than actually adding protein to 
the gluten.

He added that prosecutors aren't alleging that the Millers and ChemNutra 
knew that the product was toxic, only that they were aware the product had 
been shipped into the U.S. under false pretenses and failed to notify their 
customers.

"Millions of pet owners remember the anxiety of last year's pet food recall. 
These indictments are the product of an investigation that began in the wake 
of that recall," Wood said.

Steve Stern, a spokesman for ChemNutra, said the Millers "deny the 
allegations by the Justice Department in the strongest of terms and look 
forward to the opportunity to prove their innocence at trial. Neither Mr. 
nor Mrs. Miller had any intent to defraud or knowledge of any wrongdoing."

Wood said the Chinese government is cooperating with the investigation and 
shut down Xuzhou shortly after its connection to the melamine scare was 
discovered last year.

In addition, Chinese officials signed an agreement in December increasing 
inspections on a number of products, including pet food ingredients, Wood 
said.

"Since this issue came to light, steps have been taken to protect consumer 
safety," Wood said.

He added that Chinese authorities took Linzhun into custody at the time his 
company was shut down, but he said he didn't know if Linzhun was still in 
custody.

The U.S. doesn't have an extradition treaty with China, meaning there's no 
legal way to force China to hand over Linzhun or Chen, Wood said. But 
federal authorities have alerted Interpol and other law enforcement agencies 
to be on the lookout for them if they leave China.



By DAVID TWIDDY     AP Business Writer




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