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Pet Owners Cheer Indictments in Toxic Pet Food Case

But additional indictments and safeguards are needed, they argue

By Lisa Wade McCormick
ConsumerAffairs.com

February 8, 2008

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Pet owners across the country applauded the indictmen of two Chinese companies -- and an American importer and its owners -- for their alleged roles in intentionally manufacturing and distributing melamine-tainted wheat gluten that was used to make dog and cat food.

Pet food makers last year recalled more than 150 brands of dog and cat food contaminated with melamine, a chemical that is not approved for use in human or animal food.

Thousands of dogs and cats nationwide suffered kidney disease or died after eating the adulterated food.

"When I first read about these (indictments), I was crying because I was so happy," said pet owner Carol V. of Rhode Island, whose two cats became gravely ill last February after eating melamine-tainted pet food.

"It was one year ago yesterday that my nightmare started. It made me feel really good that something was being done. I was shocked because I had not idea that these criminal investigations were going on. I thought they had fizzled," she said.

But Carol and other pet owners are adamant that the investigation into last year's pet food recall -- the largest in U.S. history -- must continue.

They say more companies should be held accountable for their roles in the deaths and illnesses of pets nationwide.

"I don't think the American company that imported the wheat gluten should be alone in this investigation," Carol said.

Indictments announced

On Wednesday, United States Attorney John Wood announced federal grand jury indictments against:

• Xuzhou Anying Biologic Technology Development Co., LTD. (XAC), a Chinese processor of plant proteins that exports products to the United States;

• Mao Linzhun, a Chinese national who was the owner and manager of XAC;

• Suzhou Textiles, Silk, Light Industrial Products, Arts and Crafts I/E Co., LTD. (SSC), a Chinese broker used by XAC to export products to the United States;

• Chen Zhen Hao, 58, a Chinese national who was president of SSC.

The 26-count indictments specifically charged the companies and individuals with intent to defraud and mislead U.S. manufacturers -- and introducing misbranded food into interstate commerce.

In a separate but related case, Wood also announced federal indictments against:

• ChemNutra, Inc., of Las Vegas, Nevada, which buys food and food components in China and imports them into the U.S. to sell to companies in the food industry;

• Sally Qing Miller, 41, a Chinese national, who is president and controlling officer of ChemNutra, Inc,;

• Stephen S. Miller, 55, ChemNutra's owner and chief executive officer. He is married to Sally Miller.

The indictments alleged that the Millers and ChemNutra delivered melamine-tainted and misbranded food into interstate commerce.

Wire fraud conspiracy

The indictments further charged the Millers and ChemNutra with participating in a wire fraud conspiracy.

"In today's global economy, crimes that occur halfway around the world can seriously impact our lives," Wood said, adding the cases were filed in Kansas City, Missouri, because it was the port of entry for the melamine-tainted wheat gluten.

"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. We take seriously our responsibility to uphold the health and safety standards that protect America's food supply. Vigorous enforcement is an essential part of that effort," Wood said.

The indictments unraveled a web of fraud and deception that stretched from Nevada and China – and ultimately across the country and into the homes of thousands of unsuspecting pet owners and their dogs and cats.

According to court records, more than 800 metric tons of wheat gluten was exported to the United States -- in at least 13 separate shipments -- between November 6, 2006 and February 21, 2007. Invoices reveal those shipments totaled nearly $850,000.

The indictments stated those shipments of wheat gluten were tainted with melamine and falsely labeled to avoid inspection in China.

Court records revealed that ChemNutra and the Millers received the melamine-tainted wheat gluten at a port of entry in Kansas City, Missouri, and then sold the products to their customers.

Those customers used the contaminated wheat gluten to make several brands of pet food, the indictments stated. Pet food makers use wheat gluten -- a natural protein derived from wheat or wheat flour -- as a binding agent to thicken the "gravy."

Wheat gluten

Wednesday's indictments stated that ChemNutra contracted with SSC to purchase the wheat gluten.

Under the terms of that contract, SSC agreed to provide ChemNutra with food grade wheat gluten that had a minimum protein content of 75 percent.

According to the indictments, SSC then entered into a separate contract with XAC to supply the wheat gluten needed to fulfill its contract with ChemNutra.

The indictments alleged that XAC added melamine to the wheat gluten to falsely inflate the protein content -- and meet the amounts specified in ChemNutra's contract.

It was cheaper for XAC to add melamine to the wheat gluten than to increase its actual protein content, the indictments stated.

But why didn't Chinese officials inspect the tainted wheat gluten before it left the country?

According to the indictments, SSC mislabeled the wheat gluten with a code used for products that are not subject to mandatory inspection by the country's General Administration of Quality supervision, Inspection and Quarantine (AQSIQ).

The Chinese government stated that XAC did not declare the tainted wheat gluten as a raw material for feed or as food. Instead, it falsely identified the wheat gluten as another product – one that was not subject to inspection.

Wednesday's indictments further alleged that SCC provided ChemNutra and the Millers with documents that used the inaccurate product code. This is where the wire fraud conspiracy charge comes into play.

Citing e-mail messages, the indictments alleged that Sally Miller -- because of her background and training -- knew the wheat gluten would not be subject to inspections in China because the shipments were mislabeled with that product code.

Federal authorities said Sally Miller holds an engineering degree in food chemistry from Hangzhou University in China and has more than 10 years of work experience in China – primarily as a purchasing manager for United States companies.

The indictments call for fines and jail time for executives at the Chinese companies -- and for Millers.

Wrongdoing denied

The Millers on Wednesday denied any wrongdoing.

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

In a written statement, the company also said that federal authorities did not accuse the Millers of knowing the wheat gluten was tainted with melamine.

"Although Mr. and Mrs. Miller strongly deny any intent to defraud or knowledge of wrongdoing, the government does not allege that Mr. and Mrs. Miller knew of the presence of melamine or any other substance that would cause death or injury to animals," the statement read. "The Millers unequivocally support the government pursuing those with knowledge of the dangerous contaminants."

The company, however, said the Millers were "deeply bothered by the government's failure to make these important distinctions in its press release related to their indictments."

A manager at Suzhou Textiles told The New York Times the company's owner was on vacation. He also said the company no longer ships food to the United States.

During a press conference on Wednesday, Wood acknowledged that it might be difficult to bring the Chinese defendants to the United States for trail.

The U.S. does not have an extradition treaty with China.

Wood, however, said his office will send arrest warrants for the Chinese defendants to international authorities – action that makes it possible for the men to be detained if they travel to a country with a U.S. extradition treaty.

Wood also told reporters that Wednesday's indictments are accusations – and not evidence of guilt.

The charges, he added, come on the heels of a long investigation by the U.S. Food and Drug Administration Office of Criminal Investigation and U.S. Immigration and Customs Enforcement.

Pet owners respond

Meanwhile, pet owners hope additional charges will be filed in connection with the pet food nightmare.

"I think this is the tip of the iceberg and more indictments will come against other companies," said pet owner Doris B. of Georgia. "I think Menu Foods should face federal charges, too."

Menu Foods is the Canadian-based company at the heart of last year's pet food recall.

On March 16, 2007, Menu pulled more than 60 million containers of melamine-tainted dog and cat food off store shelves nationwide.

But weeks earlier, the company conducted routine feeding trials on pet food made with the tainted wheat gluten ChemNutra imported from China.

Menu Foods acknowledged that nine animals died during those trials.

The company, however, didn't report those deaths -- or five others that it learned about -- to the FDA until March 15, 2007.

"Think how many animals would have been saved if Menu Foods would have come out sooner -- and said they had a problem -- that animals were becoming sick and dying after eating their food," said pet owner Carol V. of Rhode Island. "Those feeding trials were between February 20-26 and these animals were dying, yet Menu Foods said nothing until March 15."

Canadian author Ann Martin, who has researched the pet food industry for years, agreed that U.S. authorities should investigate – and perhaps charge -- Menu Foods and other pet food companies in connection with last year's recall.

"Menu Foods should have been part of this indictment as they, along with every other pet food company, neglect to test the raw ingredients that are being used in the foods they produce," Martin told ConsumerAffairs.com. "Menu knew weeks before the recall that there was a problem, yet chose to blame pet owner's for the illnesses and carried on with their shipping of the toxic pet food."

Do Wednesday's indictments represent justice for the pets that died after eating the tainted food?

Not at all, Martin said.

"These indictments are no justice for the thousands of dogs and cats that suffered and died because of this contamination," said the author of "Foods Pet Die For," and "Protect Your Pets."

"The only justice would be to put an end to the unethical practices that are perpetrated within this industry."

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