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.