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Nevada Couple Pleads Guilty to Distributing Melamine-Tainted Gluten

Possible sentence of two years in prison, $200,000 fine

By Lisa Wade McCormick
ConsumerAffairs.com

June 16, 2009

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A Nevada couple pled guilty in federal court today to distributing melamine-tainted wheat gluten, the ingredient blamed for the illnesses of deaths of thousands dogs and cats nationwide during the massive 2007 pet food recall.

Sally Qing Miller, 43, a Chinese national, and her husband, Stephen S. Miller, 56 — along with their company, Chemnutra, Inc., — entered their guilty pleas late this afternoon before U.S. Magistrate Judge John Maughmer.

Sally Miller is the controlling owner and president of Chemnutra; Stephen Miller is an owner and chief executive officer of Chemnutra.

Each of the co-defendants pleaded guilty to one count of selling adulterated food and one count of selling misbranded food.

"Millions of pet owners were impacted by the pet food recall in 2007," said Matt J. Whitworth, acting United States Attorney for the Western District of Missouri. "The conduct of these defendants in violating federal health and safety standards caused the deaths and illness of thousands of family pets, as well as anxiety among dog and cat owners across the country and economic harm to many pet food manufacturers."

By entering their guilty pleas, the Millers and Chemnutra admitted:

The chemical melamine — used to make plastic — was added to the wheat gluten to make it appear that the product had a higher protein content;

The wheat gluten's labeling was false and misleading because it represented the product had a minimum protein level of 75 percent — when it did not — and melamine was not listed on the label as an ingredient.

Under federal statutes, the Millers can face up to two years in federal prison without parole, plus a fine of up to $200,000, and an order of restitution. Chemnutra is subject to a fine of up to $400,000 and an order of restitution.

The Las Vegas, Nevada, business buys food and food components in China and imports those products into the United States. The company then sells those products to businesses in the food industry, including pet food manufacturers.

According to the U.S. Attorney's Office, Chemnutra and the Millers imported more than 800 metric tons of tainted wheat gluten from China — in at least 13 separate shipments — between November, 6, 2006, and February, 21, 2007. Federal authorities said those shipments — which totaled nearly $850,000 — were tainted with melamine.

Chemnutra and the Millers received the melamine-tainted wheat gluten at a port of entry in Kansas City, Missouri, and then sold and shipped the product to customers across the United States. Pet food makers then used the tainted product in various brands of food.

Role in pet food recall

During 2007, pet food manufacturers recalled more than 150 brands of dog and cat food that contained the tainted wheat gluten. Dogs and cats across the country that ate tainted pet food suffered kidney problems or died.

The Food and Drug Administration (FDA) estimated approximately 1,950 cats and 2,200 dogs died after eating the melamine-tainted pet food.

ConsumerAffairs.com heard from thousands of dog and cat owners nationwide and in Canada who said their pets became sick or died after eating the contaminated pet food.

Pet food manufacturers use wheat gluten as a binding agent in certain types of food as a thickening agent for gravy.

The Millers and Chemnutra will be sentenced after the United States Probation Office finishes its presentence investigations.

Authorities said the conduct charged against the Millers in the remaining counts included in their 2008 federal indictment could be considered by the court and used against them at the time of sentencing.

Assistant U.S. Attorneys Gene Porter and Joseph Marquez prosecuted the case, which was investigated by FDA’s Office of Criminal Investigation and U.S. Immigration and Customs Enforcement.

The newly-appointed FDA Commissioner applauded the investigative team and their results.

"The FDA's Office of Criminal Investigations acted aggressively in 2007 to investigate Chemnutra," said Dr. Margaret A. Hamburg. "Today's announcement reflects our continued commitment to investigate and prosecute companies and individuals that violate the law and endanger the public’s health through illegal conduct."

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