Mary Mahoney’s Old French House, a historic restaurant in Biloxi, and its co-owner and manager, Anthony Charles Cvitanovich, were sentenced today for their involvement in a years-long conspiracy to misbrand seafood. The scheme involved substituting cheaper, imported fish for the locally sourced premium seafood the restaurant advertised on its menu.
The beloved establishment, known for its rich history and exceptional Gulf Coast cuisine, had been falsely marketing seafood as locally sourced, despite the fish being imported from overseas, including Africa, India, and South America. The fraudulent practice took place between 2013 and 2019, with the restaurant selling approximately 58,750 pounds of misbranded seafood, amounting to over 29 tons of fish.
Corporate Penalties:
As part of a plea agreement, Mary Mahoney’s Old French House was sentenced to five years of probation. The court also imposed a total penalty of $1.499 million, which includes a criminal fine of $149,000 and $1.35 million in forfeiture, representing the proceeds from the fraudulent sales.
Additionally, the restaurant will be required to maintain detailed records of the species, sources, and cost of seafood for at least five years. These records must be made available to any federal, state, or local authorities that oversee food safety, labeling, and the sale of seafood. Mary Mahoney’s will also be required to answer any inquiries truthfully from governmental agencies or customers regarding the source and cost of seafood sold.
Sentencing of Cvitanovich:
Anthony Charles Cvitanovich, 55, the co-owner and manager of Mary Mahoney’s, was sentenced to three years of probation, four months of home detention, and a $10,000 fine. Cvitanovich pled guilty to misbranding seafood during 2018 and 2019. His role in the conspiracy included overseeing the fraudulent transactions in collaboration with a Biloxi seafood wholesaler.
Fraudulent Scheme Details:
The conspiracy, which began in 2002 and continued until 2019, involved the sale of frozen, imported fish as premium, locally caught species. Between December 2013 and November 2019, the restaurant and its co-conspirators misrepresented the origin of the seafood, misleading customers who paid a premium for what they believed was fresh, locally sourced Gulf Coast seafood.
Impact on the Gulf Coast Seafood Industry:
U.S. Attorney Todd Gee emphasized the impact of the fraudulent scheme on the local seafood industry, stating, “Misbranding foreign seafood as premium, locally caught fish hurts the Gulf Coast seafood industry and defrauds customers who paid to taste the real thing. This investigation and today’s sentence will hopefully send a message that the Department of Justice is serious about holding businesses accountable for mislabeling food sources.”
Legal Announcement:
The announcement of the sentences was made by U.S. Attorney Todd W. Gee for the Southern District of Mississippi, alongside Assistant Attorney General Todd Kim of the Environment and Natural Resources Division. The investigation highlights ongoing efforts by federal authorities to enforce food labeling regulations and combat consumer fraud.
Mary Mahoney’s Old French House, a cornerstone of Biloxi’s dining scene, now faces significant scrutiny and financial penalties as a result of its involvement in this scheme. The restaurant, known for its historic setting and iconic Gulf Coast dishes, will be required to make substantial changes to its operations and cooperate with ongoing oversight to ensure compliance with food safety and labeling laws moving forward.