“The motive for engaging in this unlawful operation was financial, and the People’s complaint alleged that nearly every aspect of their business was conducted in violation of state or federal law,” the attorney’s office wrote.The business partners began to sell the bottles of wine for about $500 despite the Food and Drug Administration’s warning that the wine was not fit for human consumption because it was submerged in the ocean and potentially contaminated.
They also lacked federally approved labeling on the wine, an Alcoholic Beverage Control sales permit or business license, and were not paying the state of California sales tax. Ocean Fathoms also advertised that it would be donating a portion of its profits to a local environmental nonprofit, but there was no evidence to indicate that any donations occurred.
The pair was required to pay one of their investors back and are not allowed to continue operating their business in any way that violates state or federal law. “This case involved individuals who operated with complete disregard for our consumer and environmental laws … The case highlights the importance of our office’s relationship with outside agencies and it demonstrates our commitment to holding companies and individuals accountable for violating all types of consumer and environmental laws.” District Attorney John T. Savrnoch wrote.