Maine lobstering union settles racketeering lawsuit

Jan. 7—A union of lobstermen that purchased a wholesale business near Bar Harbor says it has settled a five-year-old federal lawsuit against the former owners for allegedly stealing nearly $2 million.

The Maine Lobstering Union bought the wholesale arm of the Trenton Bridge Lobster Pound from Anthony and Josette Pettegrow in 2017 and agreed that the couple’s son, Warren Pettegrow, would stay on as CEO to run the wholesale business for the union.

The lawsuit, filed in U.S. District Court in Bangor in 2019, allege that the Pettegrows coordinated to “embezzle money and lobster products from the union and its membership” — charges the family continues to deny.

Maine Lobstering Union Local 207, which operates the wholesale cooperative as Lobster 207, is part of the 600,000-member International Association of Machinists and Aerospace Workers, the same union that represents employees of Bath Iron Works.

Union officials said during a press conference Tuesday that Lobster 207 will receive more than $5 million from the settlement, but they could not immediately provide a court record of the agreement. The court acknowledges that a settlement has been reached, but details of the agreement aren’t expected to be wrapped up until April 25.

The civil suit said that Warren Pettegrow and his family embarked “on a systematic scheme and pattern of racketeering activity designed to enrich themselves at Lobster 207’s expense.”

According to court records, Pettegrow charged Lobster 207 about 20 cents per pound more than he paid lobstermen at the dock and funneled the markup to his family’s remaining businesses, which include a seafood restaurant and retail shop on Route 3 in Trenton, just before Mount Desert Island.

Mike Yohe, Lobster 207’s current CEO, said the settlement on Jan. 2 came as a relief and a surprise — jury selection was scheduled to start Jan. 6.

“We were preparing for trial,” Yohe said. “It’s a new start for us, rebuilding trust with the fishermen in this state.”

David Ginzer, an attorney with Richardson Whitman in Portland who represents the Pettegrows, would not confirm the $5 million figure but sent a statement on their behalf.

“The Pettegrow family agreed to settlement terms to allow everyone to move on from years of highly contested litigation,” Ginzer said. “The Pettegrows vehemently deny the contentions in this suit and that they engaged in any wrongdoing.”

Ginzer said the Pettegrows wanted to resolve the lawsuit “to move forward in a positive way and avoid the uncertainties of continued litigation.” They are focusing on their family and continuing to serve the fishermen and greater community as Trenton Bridge Lobster Pound has since 1956, he said.

The lawsuit and accompanying documents allege that Lobster 207 lost $1.94 million when Pettegrow was CEO. However, because the suit alleges racketeering, the cooperative could seek triple damages.

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