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Former BASE auction employees implicate owners in Carlos Rafael scandal

February 26, 2021 — Two former employees of the Buyers and Sellers Exchange (BASE) in New Bedford, Massachusetts, U.S.A. have alleged that the owners – brothers Raymond and Richard Canastra – were aware of and involved in falsifying quotas performed by the “Codfather” Carlos Rafael.

Rafael pleaded guilty in 2017 to falsifying fish quotas, tax evasion, and conspiracy in the wake of allegations he was connected to a criminal fishing scheme involving the evasion of fishing quotas and the smuggling of profits to Portugal. Following the criminal case, a civil case brought by NOAA ensued, which Rafael settled in August 2019.

Read the full story at Seafood Source

BASE auction withdraws its bid to buy Carlos Rafael’s boats

January 10, 2020 — An attempt to gain control of a large portion of Carlos Rafael’s fleet by the local seafood auction has been withdrawn after a fight over the vessels made its way to court.

Buyers and Sellers Exchange (BASE), the seafood display auction on the city’s waterfront, attempted to take over an existing deal negotiated by Blue Harvest Fisheries for a number of Carlos Rafael’s groundfish vessels, Blue Harvest CEO Keith Decker told The Standard-Times in December.

However, since then BASE has withdrawn their bid on the vessels, and Blue Harvest Fisheries’ original deal is back in place, according to both BASE and Decker.

The fight is an important one as New Bedford is trying to keep the fishing and scallop boats, as well as their federal permits, in the city. Though both entities have pledged to do that, Blue Harvest would consolidate ownership and BASE has said it would resell the boats to individual owners.

In a press release sent out on Thursday, BASE said, “Unfortunately the folks that encouraged BASE to move forward have now withdrawn their commitments, due to Blue Harvest’s litigation.”

Blue Harvest filed a civil suit against Carlos Rafael and the fishing corporations associated with his fishing vessels on December 23, after BASE had exercised their Right of First Refusal to their purchase, and listed BASE as an interested party in the suit, according to court documents.

Read the full story at the New Bedford Standard-Times

Canastras: Backers for Rafael vessels withdrew after Blue Harvest lawsuit

January 9, 2020 — Richard and Raymond Canastra say the reason they withdrew their $19.3 million offer to buy 15 of Carlos Rafael’s groundfish vessels, in New Bedford, Massachusetts, is because the lawsuit filed by Blue Harvest Fisheries scared off their backers.

Undercurrent News broke the news Wednesday morning that the Canastras, the founders and owners of the Buyers and Sellers Exchange (BASE), New Bedford’s largest seafood auction, were ending the fight which has served to divide the New England fishing community.

The two brothers did not immediately respond to requests by Undercurrent for an explanation. On Thursday, however, they answered with a press release sent by Cassie Canastra, BASE’s director of operations, and the daughter of Raymond Canastra.

“It was not BASE’s intention to acquire and own these permits and vessels for BASE’s long-term ownership,” the statement reads. “In fact, it was quite the opposite.”

Read the full story at Undercurrent News

Bregal’s Blue Harvest set for 15 Rafael vessel deal after Canastras withdraw offer

January 8, 2020 — Richard and Raymond Canastra, the founders and owners of the Buyers and Sellers Exchange (BASE), the seafood auction in New Bedford, Massachusetts, have withdrawn their offer for convicted former commercial fishing mogul Carlos Rafael’s 15 groundfish vessels, essentially giving the boats and their related permits to Blue Harvest, Undercurrent News has learned.

The details are as scant as the three sentences contained in an email sent by one of the attorneys to the others involved in the highly contentious fight to acquire the vessels, a copy of which has been obtained by Undercurrent News.

“BASE has provided notice to the Rafaels that they are not moving forward with the transaction. Blue Harvest is free to complete the transaction with Rafaels. Kindly forward a stipulation of dismissal of the Blue Harvest matter,” reads the email.

Read the full story at Undercurrent News

Quinn Fisheries finalizes deal for six Rafael scallop vessels

September 24, 2019 — The following is an excerpt from a story originally published by Undercurrent News:

Quinn Fisheries, a 33-year-old, New Bedford, Massachusetts-based scallop operation, has closed its deal to purchase six of Carlos Rafael’s 11 scallop vessels and their related permits, sources told Undercurrent News.

The acquisition, which was confirmed by Michael Quinn, the operations manager and co-owner of the company with his father and founder Charlie Quinn, doubles the size of the Quinn Fisheries scallop fleet to 12 total vessels and will cost the company about $40 million.

The new vessels acquired include the Acores, Athena, Apollo, Gypsy Girl, Hera II and the Villa Nova Do II, Michael Quinn said.

Undercurrent News had earlier reported how the Quinns had a deal to buy seven of Rafael’s vessels for nearly $46 million, per an Aug. 29 purchase agreement. The deal later was confirmed by court documents related to a lawsuit filed against Rafael by the Buyers and Sellers Exchange (BASE), the New Bedford, Massachusetts-based seafood auction.

BASE’s owners Richie and Raymond Canastra attempted to block the agreement as part of an apparent attempt to acquire the same vessels, which also possess several groundfish permits. They argued unsuccessfully that Rafael violated the rules of groundfish sector 7 related to offering other sector members the right of first refusal.

However, Merita Hopkins, an associate judge in Bristol County, Massachusetts, blocked the temporary restraining order requested by BASE, freeing up the Quinns and Rafael to complete their agreement.

Read the full story at Undercurrent News

Massachusetts: An industry on the brink

April 9, 2018 — NEW BEDFORD, Mass. — Two computer screens lit Richie Canastra’s windowless office. The co-owner of BASE (Buyers and Sellers Seafood Exchange) seafood auction scrolled through scores of financial data associated with commercial fishing landings at 62 Hassey St.

The numbers that starred back since NOAA implemented a groundfishing ban last November tell a dark story in an industry already struggling to survive.

“With the ban, if we’re not up and fishing by May 1, you might as well just call (groundfishing in New Bedford) over,” Canastra said.

In the four months since NOAA revoked the operational plan for 14 groundfishing vessels, landings at the auction are down 25 percent. With only seven groundfish vessels still fishing from New Bedford, auctions have decreased from daily occurrences to two or three a week.

Prices of fish have also plummeted by an average of 41 cents or 25 percent, he said.

The numbers that flashed on the screen dictated BASE was generating less revenue in the past, but the hardships extended further than BASE.

In speaking with various shore side industry along the Port of New Bedford, the Standard-Times learned BASE’s story isn’t unique. Businesses like Crystal Ice, New Bedford Ship Supply, Southwick Marine Insurance to name a few endure the same financial strain. Even across the port into Fairhaven, businesses like Harbor Hydraulics share in the hardships.

“We’re one company. An ice company. I don’t know how many companies are involved within one fishing vessel. You have fuel. You have ice. You have gear. You have groceries. Right down to the groceries,” said Robe Hicks, the manager of Crystal Ice. “It’s so widespread it’s not even funny.”

The ban stems from the penalties former NOAA Regional Administrator John Bullard implemented against the sector to which Carlos Rafael’s vessels belonged. Rafael is serving a 46-month prison sentence for falsifying fishing quota, tax evasion and bulk cash smuggling.

Read the full story at the New Bedford Standard-Times

 

Scallop auction owners, friends of Carlos Rafael, tipped as likely fleet buyers

September 25, 2017 — Could old friends of Carlos Rafael’s wind up with his massive New England fishing fleet?

Speculation is building that the Buyers and Sellers Exchange (BASE), an electronic seafood auction firm in New Bedford, Massachusetts, could be the company mentioned in court documents as having signed a memorandum of agreement to buy the 30-something vessels, an unknown number of skiffs, and some 50 state and federal permits to catch scallops, cod, haddock and many other fish found in the Gulf of Maine.

Richard and Raymond Canastra, BASE’s co-owners, were not in their offices on Friday, a company employee told Undercurrent News. But many see it as a likely match.

Raymond Canastra is reported to be a long-time friend of Rafael’s. The two mens’ daughters co-own a seafood brokerage firm in New Bedford.

The Canastra brothers don’t have fishing boats, but if they were able to acquire the Rafael operation, “it would not be a surprise to anyone”, Jim Kendall, a longtime member of the area fishing community and the executive director of New Bedford Seafood Consulting, told Undercurrent.

The Canastras know the fishing industry well, and probably wouldn’t have too much trouble making Rafael’s business work with theirs, he said. There is little money to be made in groundfish, but Rafael’s scallops permits could be quite valuable. Also, it would satisfy the goal of keeping nearly 300 jobs in the area.

Read the full story at Undercurrent News

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