Saving Seafood

Law

Federal Judge Halts Blood Harvest of Horseshoe Crabs

May 13, 2021 — A federal judge on Wednesday blocked the planned blood harvest of thousands of horseshoe crabs in a South Carolina wildlife refuge until a lawsuit seeking to require the practice be conducted sustainably is resolved.

Defenders of Wildlife and the Southern Environmental Law Center filed a motion in March seeking to stop a pharmaceutical company’s practice of harvesting horseshoe crabs for their blood as they come ashore to lay eggs each spring in the Cape Romain National Wildlife Refuge.

On Wednesday, U.S. District Court Judge Bruce H. Hendricks released a 29-page opinion granting the groups’ motion for a preliminary injunction and halting a planned harvest while the case is pending.

The Atlantic horseshoe crab is a protected species and critical contributor to biomedical research. Medical researchers value the arthropod’s milky-blue blood because it is the only known natural source of limulus amebocyte lysate —a substance that can detect dangerous endotoxins in drugs and vaccines.

Read the full story at the Courthouse News Service

Alaska Supreme Court upholds legality of fish landing tax

May 12, 2021 — A raw fish tax that has pumped tens of millions of dollars into coastal communities over the past decade has survived a legal challenge before Alaska’s highest court.

The state can tax seafood caught beyond the 3-mile line in federal waters, then loaded on a bulk carrier at the dock for foreign export, without violating provisions of the U.S. Constitution.

That’s according to the Alaska Supreme Court, which released its 31-page ruling Friday.

Fishermen’s Finest, a Washington state seafood company that operates factory trawlers and exports most of its product overseas, had challenged the state’s tax in court. It argued that there are protections against state taxation on shipping in coastal state waters, and a lower state superior court agreed.

But the justices, writing in a unanimous opinion, found that the fees assessed on Fishermen’s Finest’s products are not unconstitutional

“The landing tax is not opportunistic taxation of vessels ‘merely transiting’ adjacent waters without landing or benefitting from any local services,” the justices wrote.

Read the full story at KTOO

Fisheries Group Sues Over Salmon Management

May 11, 2021 — While its standing in the federal District Court case involving the historic 1974 Boldt decision remains in question, Fish Northwest has filed another lawsuit.

The regional nonprofit, spearheaded by the owner of an Anacortes fishing charter company, filed a lawsuit in U.S. District Court for the Western District of Washington on April 28.

Read the full story at Seafood News

Ken Worsham, Scott Cameron avoid jail time, concluding tuna price-fixing case sentencings

April 28, 2021 — Former Bumble Bee Foods executives Kenneth Worsham and Walter Scott Cameron were each sentenced to three years’ probation for their roles in a conspiracy to fix the price of canned tuna sold in the United States between 2011 and 2013.

Both were sentenced by Judge Edward M. Chen of the Northern District of California on Wednesday, 28 April, and both received more lenient sentences than typical for the level of crimes to which they pleaded guilty because they served as key witnesses in the U.S. government’s case against former Bumble Bee Foods CEO Chris Lischewski, who is currently serving a 40-month prison sentence. Former StarKist executive Stephen Hodge also served as a witness in the U.S. government’s case against Lischewski, and received leniency in a non-custodial, probationary sentence issued by Chen in January.

Read the full story at Seafood Source

Quinn Fisheries, Blue Harvest sue Rafael trustee for blocking vessel sale, lawsuit says

April 28, 2021 — Quinn Fisheries and Blue Harvest Fisheries filed a lawsuit last week against Carlos Rafael’s trustee and three arbitrators, alleging they are blocking a multimillion-dollar transaction of vessels and permits that was scheduled to happen April 16.

The permits are for scallops and multi-species fish. The fishing seasons have already started or will soon start and because the transaction cannot be finalized, Quinn Fisheries and Blue Harvest state they will experience serious and irreparable financial harm.

According to the 19-page complaint, Quinn Fisheries planned to transfer certain vessels and permits to Blue Harvest, and then purchase vessels and permits from Blue Harvest.

The companies state the transaction will not “significantly dilute or otherwise jeopardize” the Rafael trust. The trust was established in 2019 to hold certain assets that, if not for a settlement agreement, would be held by Rafael, according to a document.

Rafael was convicted in 2017 for conspiracy and falsifying federal records, but was recently released from prison. As part of his settlement with the National Oceanic and Atmospheric Administration (NOAA), he was required to leave the fishing industry and sell his commercial fleet and permits.

Read the full story at the New Bedford Standard-Times

New York wholesaler indicted on seafood fraud charges

April 23, 2021 — A federal grand jury has indicted Montauk, New York-based seafood wholesaler Bob Gosman Co. on seafood fraud charges.

On 21 April, the grand jury unsealed the indictment in the seafood fraud case, which also charges fishing captain Christopher Winkler, Bob Gosman Co. managers Bryan Gosman and Asa Gosman, and an unnamed co-conspirator – a now-defunct company operating out of the New Fulton Fish Market – the U.S. Department of Justice said in a press release.

Read the full story at Seafood Source

Juneau judge denies Sitka Tribe’s motion on constitutional grounds

April 23, 2021 — The commercial and subsistence herring seasons in Sitka have drawn to a close. But the legal case between Sitka Tribe of Alaska and the state continues, with a Juneau Superior Court judge recently denying Sitka Tribe’s motion for summary judgement on constitutional grounds.

Last fall, the Sitka Tribe of Alaska won two victories against the state in the fight over its management of the Sitka Sound Sac Roe Herring Fishery. And in January the legal team representing STA made its third case, arguing that the state had not met its constitutional duties in its operation of the fishery. Juneau Superior Court Judge Daniel Schally denied STA’s claim in a ruling issued last month.

Read the full decision here

During oral argument in January, attorneys representing STA argued that the Alaska Department of Fish and Game is required under certain clauses of the Alaska State Constitution to use the “best available information” when making management decisions about the fishery. They argued that the state had not used the “best available information” during the 2018-2019 season when it failed to provide a subsistence harvest data report and a scientific study reviewing the state’s model to the Board of Fish.

After the hearing, it took Judge Schally nearly eight weeks to issue a ruling. In his 13 page decision, Schally wrote that the state’s constitution does not require the Alaska Department of Fish and Game to use the “best available information.”

Read the full story at KCAW

Montauk Fisherman and Wholesalers Indicted in Fraud Scheme

April 22, 2021 — A federal grand jury has indicted two members of Montauk’s Gosman family and a commercial fishing boat owner on charges of conspiracy to commit fraud and obstructing an investigation in connection with a scheme to sell at least $250,000 in illegally caught fluke and black sea bass. The United States Department of Justice announced the indictment on Wednesday.

The indictment stems from about 70 fishing trips that Christopher Winkler, 61, also of Montauk, made aboard his boat New Age from May 2014 to July 2016 during which he took fluke and black sea bass in excess of federal catch quotas, according to the Department of Justice. The fish was sold to a now-defunct company, Greater New York Fish, at the New Fulton Fish Market in the Bronx that was owned in part by Asa Gosman, 45, and Bryan Gosman, 48.

After the Bronx company stopped operating, Mr. Winkler continued to sell the allegedly illegal catch to the two men, through Bob Gosman Co., in which they had an ownership role, the Justice Department said.

The grand jury charged Mr. Winkler, Bryan Gosman, and Asa Gosman with one count each of conspiracy to commit mail and wire fraud as well as to unlawfully frustrate National Ocean and Atmospheric Administration regulatory efforts.

Read the full story at The East Hampton Star

New York Fisherman and Fish Dealer Charged with Conspiracy, Fraud, and Obstruction

April 21, 2021 — The following was released by The United States Department of Justice:

Today, a federal grand jury in the Eastern District of New York unsealed the indictment of one fisherman, a wholesale fish dealer, and two of its managers for conspiracy to commit mail and wire fraud and obstruction in connection with a scheme to illegally overharvest fluke and black sea bass. All four defendants are from Montauk.

Christopher Winkler, 61, Bryan Gosman, 48, Asa Gosman, 45, and Bob Gosman Co. Inc. were charged with one count of conspiracy to commit mail and wire fraud as well as to unlawfully frustrate the National Ocean and Atmospheric Administration’s (NOAA) efforts at regulating federal fisheries. Winker and the corporate defendant each face substantive fraud charges. In addition, each of the defendants was charged with obstruction.

The indictment alleges that between May 2014 and July 2016, Winkler, as captain of the New Age, went on approximately 70 fishing trips where he caught fluke or black sea bass in excess of applicable quotas. This fish was then sold to a now-defunct company and unindicted co-conspirator in the New Fulton Fish Market in the Bronx. Both Asa Gosman and Bryan Gosman had an ownership interest in the defunct company. After the Bronx company went under, Winkler sold a smaller quantity of his illegal catch directly to Bob Gosman Co. Inc., a Montauk fish dealer in which Asa Gosman and Bryan Gosman had a management role. The overages of fish included at least 74,000 pounds of fluke, and the overall over-quota fish (of all species) were valued at least $250,000 wholesale.

Under federal law, a fishing captain is required to accurately detail his catch on a form known as a Fishing Vessel Trip Report (FVTR), which is mailed to NOAA. Similarly, the first company that buys fish directly from a fishing vessel is termed a fish dealer, and fish dealers are required to specify what they purchase on a federal form known as a dealer report, which is transmitted electronically to NOAA. Pursuant to statutory mandate, NOAA utilizes this information to set policies designed to ensure a sustainable fishery. The indictment alleges that the part of the conspiracy was to falsify both FVTRs and dealer reports in order to cover-up the fact that fish were taken in excess of quotas.

Additionally, Asa Gosman, Bryan Gosman, and Bob Gosman Co. Inc., acting through its agents and employees, were charged with obstructing the investigation into these crimes by corruptly withholding certain documents and records sought by a federal grand jury.

Initiated as part of Operation One-Way Chandelier, the indictment is part of a multi-year, ongoing investigation into fisheries fraud on Long Island. The case is being investigated by NOAA’s Office of Law Enforcement. Trial Attorney Christopher Hale of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section is prosecuting the case.

The defendants will be arraigned at a future date.

Read the full release here

Chicken of the Sea nearing two price-fixing settlements

April 19, 2021 — Chicken of the Sea is nearing two settlements in civil litigation launched against it in relation to its role in fixing the prices of canned tuna.

The El Segundo, California, U.S.A.-based company and its parent firm, Thai Union, have agreed in principle on two separate agreements with those who claim to have overpaid for tuna it sold between 2011 and 2015 – allegations that stem from a criminal case in which Chicken of the Sea served as a whistleblower.

Read the full story at Seafood Source