A COMPANY at the heart of the UK's biggest "black fish" scam has claimed that its participation has left it millions of pounds out of pocket.

Shetland Catch Ltd has admitted that illegal landings of mackerel and herring, valued at £47.5 million, passed through its processing plant in Lerwick between January 2002 and March 2005.

Now the firm faces action under legislation designed to strip criminals – usually drug dealers – of unlawful gains.

At the start of a hearing at the High Court in Edinburgh, judge Lord Turnbull was told that Shetland Catch was resisting an attempt by the Crown to confiscate some £6m.

Advocate depute Barry Divers said that was the sum the company had made from the quota-busting exercise, more than a third of its profits during the years in question.

Defence QC David Burns agreed that the so-called "black fish" had earned the firm £6,157,000 but said that was not the whole story as tax had been paid on the illegal earnings.

The fish processing firm also claimed that after the scam was uncovered, quotas were slashed in following years, turning annual profits exceeding £3m into losses of more than £2m.

Shetland Catch cannot be fined until the question of compensation has been decided. The confiscation hearing is expected to continue for several days.