Saving Seafood

Law

DOJ green lights Clipper, Blue North merger

September 12, 2019 — The US Department of Justice (DOJ) has greenlit a proposed merger between the two largest Pacific cod longline companies, sources told Undercurrent News.

The DOJ review of the merger of Clipper Seafoods and Blue North, which is expected to include the Bristol Bay Native Corporation (BBNC) taking a majority stake in the combined company, was undertaken to ensure that the combined company wouldn’t create a monopoly. Sources told Undercurrent that the DOJ’s seal of approval means that the deal is likely to close this week.

Despite the combined company’s heft in the market, Clipper and Blue North argued that there are several factors that go into cod prices, like other species, “so there shouldn’t be any antitrust problems”, sources previously told Undercurrent.

Read the full story at Undercurrent News

StarKist ordered to pay USD 100 million fine for role in tuna price-fixing

September 12, 2019 — StarKist & Company has been ordered to pay a criminal fine of USD 100 million (EUR 90.3 million) for its role in a tuna price-fixing conspiracy, the statutory maximum fine.

The decision, which was announced by the Department of Justice (DOJ) on 11 September, comes after the court and the company wrangled over the monetary amount of the fine. StarKist’s attorneys had been pushing to have the fine lowered to USD 50 million (EUR 45.1 million), calling the decision “life or death” for the company, while prosecutors had been pushing for a full fine based on the company’s recent investment in TechPack Solutions, an India-based can and bottle technology firm.

Read the full story at Seafood Source

Lawsuit claims Cook Inlet exploration would diminish endangered belugas

September 5, 2019 — Two environmental groups are suing the Trump administration for its decision allowing Hilcorp to disturb beluga whales as it explores Cook Inlet for offshore oil and gas.

Cook Inlet keeper is one of groups suing. Advocacy Director Bob Shavelson says seismic blasts and other exploration work would devastate a population already suffering from the effects of climate change and other factors.

“The Cook Inlet beluga whales are literally teetering on the edge of extinction,” he said. “There was a general idea that, with the halt to Native subsistence hunting in 1999, that the population would rebound. But that didn’t occur.”

Read the full story at Alaska Public Media

Judge dismisses NY’s lawsuit over commercial fluke quotas

September 3, 2019 — A federal judge has dismissed New York’s lawsuit seeking to challenge the state’s relatively small portion of the East Coast commercial fluke quota as a. congressman called for local fishermen to not comply with the restrictive allotment.

With little fanfare, U.S. District Judge Sandra Feuerstein on July 30 issued an order dismissing the case, allowing the state 10 days to file a notice to reargue its claims by next April. Court records showed no such filing had been made. New York’s original complaint was filed Jan. 14. Gov. Andrew M. Cuomo first threatened to sue over New York’s low quota at an event in Montauk in 2013.

Meanwhile, Rep. Lee Zeldin (R-Shirley) on Friday recommended that New York commercial fishermen go out of compliance with the fluke quota system in what would be a clear signal to Washington of their frustration with the process.

Read the full story at Newsday

Coast Guard on long patrol against illegal fishing in North Pacific

August 23, 2019 — A 50-year-old Coast Guard cutter is on the front line against illegal fishing on the high seas of the North Pacific, part of a growing international fight.

The cooperative effort targets uncontrolled distant-water fishing vessels, and tracks the business networks of carrier ships and fuel bunkering tankers that support them. Illegal, unreported and unregulated fishing, or IUU, operates outside the territorial waters jurisdiction of coastal nations.

But not beyond the reach of international law and cooperative regulation by fishing nations. In the North Pacific, that is what the North Pacific Fisheries Commission does.

The youngest of world’s ocean-spanning management groups, the NPFC only got started in 2015. It includes representation from Canada, China, Japan, the Republic of Korea, the Russian Federation, Chinese Taipei, the United States of America, and Vanuatu.

Read the full story at National Fisherman

Fishermen question settlement of convicted Carlos Rafael

August 23, 2019 — The penalties keep coming for New Bedford fishing mogul Carlos Rafael, the self-styled “Codfather” who once dominated groundfishing in the Northeast with one of the largest independently owned fleets in the country.

He is halfway through a 46-month federal prison sentence for violations that included falsely labeling fish, smuggling cash, tax evasion and falsifying federal records. He also was fined more than $300,000 and ordered to sell off two vessels and permits in that criminal case.

This week, Rafael was hit with more than $3 million in fines and a lifetime ban as part of a settlement agreement in a civil case brought against him by the National Oceanic and Atmospheric Administration.

Read the full story at the Cape Cod Times

US plaintiffs claim Russian ban on Norwegian salmon prompted price collusion

August 21, 2019 — Norwegian salmon farmers cannot claim strong demand has brought spot prices up in recent years, given the size of the hole in the market left by Russia’s import ban, according to new claims from US plaintiffs filing a price-fixing suit.

A total of six US distributors are listed on the latest filing, made on Aug. 19, claiming that Norway’s farmers have colluded to charge higher prices for salmon.

Plaintiffs Euclid Fish Company, Euro USA, Schneider’s Fish and Sea Food Corporation, Beacon Fisheries, Cape Florida Seafood, The Fishing Line, and Hesh’s Seafood — “individually and on behalf of all others similarly situated” — have suit several salmon farmers alleging they were damaged by “price collusion”.

The full list of defendants in the US lawsuit are: Norway’s Mowi — and its North American subsidiaries Marine Harvest USA, Marine Harvest Canada and Ducktrap River of Maine; Norway-based Grieg and its British Columbia, Canada, arm, Grieg Seafood BC; Norway’s Bremnes Seashore as well as Ocean Quality, Ocean Quality North America, Ocean Quality USA and Ocean Quality Premium Brands, entities that are a partnership between Bremnes and Grieg; SalMar; Leroy and Leroy Seafood USA; and Scottish Sea Farms, a venture jointly owned by SalMar and Leroy.

Read the full story at Undercurrent News

Carlos Rafael was a seafood kingpin, until fake Russian mobsters took him down. Now he’ll never fish again.

August 21, 2019 — Carlos Rafael was made on the waterfront. For decades, the balding seafood magnate haunted the docks and early morning fish auctions in New Bedford, Mass., where he had gone from gutting fish as a high school dropout to controlling one of the largest fishing fleets in the United States. Though he estimated his net worth at somewhere between $10 million and $25 million, he still walked the creaky, bait-scented wharves in flannel shirts and worn jeans every day, barking out commands and alternating between foul-mouthed English and rapid-fire Portuguese as he chain-smoked Winston cigarettes and monitored the day’s catch.

That all changed in 2016, when federal authorities revealed that Rafael was at the center of a sprawling criminal investigation involving fake Russian mobsters, fraudulent haddock and duffel bags of cash. Now 67, Rafael will never fish commercially again, according to the terms of a settlement with the National Oceanic and Atmospheric Administration that was announced Monday. It’s the latest chapter in the downfall of the man known as the “Codfather,” who is serving nearly four years in federal prison, and, under the new settlement, owes the government more than $3 million in fines.

Under the circumstances, getting out of the fishing business was the right choice, Rafael’s attorney, John Markey, told The Washington Post. But it also amounts to a significant sacrifice for the seafood tycoon, who wasn’t yet ready to retire. Up until the day Rafael reported to prison, Markey said, he still went to work on the docks each day at 6 a.m., driving a 10-year-old pickup truck.

Read the full story at The Washington Post

New lawsuit seeks protection zone for Northwest orcas

August 20, 2019 — A new U.S. lawsuit filed Monday seeks to establish a whale protection zone for endangered orcas in the Pacific Northwest.

The Center for Biological Diversity and the Orca Relief Citizens’ Alliance sued NOAA Fisheries in U.S. District Court in Seattle, saying the agency has failed to act on a petition it filed in 2016.

The petition sought to bar vessels from a 10- to 12-square-mile (26- to 31-square-kilometer) area west of San Juan Island where the orcas, called southern resident killer whales, feed from April through September each year. Any vessels exempted from the ban would be required to abide by a “no wake” rule in the zone.

Read the full story from the Associated Press at ABC News

NOAA settlement with Rafael clears path for big scallop, groundfish vessel selloff

August 20, 2019 — Now that the National Oceanic and Atmospheric Administration (NOAA) has settled its civil claims against Carlos Rafael and 17 of his former fishing captains, look for the wheeling and dealing to intensify for his 43 scallop and groundfish permits and a related 30 fishing vessels.

Almost two years after a federal judge sentenced Rafael to pay $300,000 in fines and restitution and spend 46 months in prison for 28 different criminal counts, including repeatedly lying about his catch to authorities and evading taxes, the 67-year-old, so-called “Codfather” of New Bedford, Massachusetts, reached an agreement on Monday to determine what civil penalties he might also pay.

NOAA budged little from the $3,356,269 it said in September 2018 that it would seek from Rafael, hitting him with a $3,010,633 civil money penalty. However, rather than revoking Rafael’s many limited access permits, as some in the fishing sector desired or even expected, NOAA has given him until Dec. 31, 2020 — about 16 months — to sell them along with the many fishing vessels he owns or controls through transactions reviewed and approved by the agency.

Read the full story at Undercurrent News