Saving Seafood

MASSACHUSETTS: Most of ‘Codfather’ fishing fleet sold

February 24, 2020 — Except for a few loose ends, Carlos Rafael’s fleet has now been sold.

Blue Harvest Fisheries, with facilities in Newport News, Virginia, and Fairhaven and New Bedford, finalized the purchase Thursday of 12 large fish trawlers, 27 fishing permits and their quota allocations that once belonged to the disgraced New Bedford fishing industry mogul.

Once dubbed “The Codfather” for his outsize presence and influence across the Northeast commercial fishing industry, Rafael is serving a 46-month sentence in a federal prison at the former Fort Devens in Harvard. He pleaded guilty to falsely labeling fish, smuggling cash, tax evasion and falsifying federal records as part of a scheme to catch and sell fish for which he did not have the necessary quota.

Under the terms of an agreement in a civil case brought by the National Oceanic and Atmospheric Administration, Rafael agreed to leave commercial fishing and to sell off all his vessels by December 2020. His attorney, John Markey, said 95% of that divestiture is now complete. All that remain are a herring trawler and its permit, two fishing permits that are already under a sales agreement that has not been executed and two fishing vessels that have no permits.

Blue Harvest CEO Keith Decker and Markey would not disclose the amount paid for the dozen trawlers, but Markey said Rafael has now paid off his debts.

Read the full story at the Cape Cod Times

Twelve of Carlos Rafael’s vessels officially sold to Blue Harvest

February 20, 2020 — The boxing match over a large portion of the Codfather’s fleet with its counter punches and knockouts has come to an end and Blue Harvest Fisheries is left standing to take its victory lap.

Blue Harvest announced in a statement Thursday that they closed a deal with Carlos Rafael for 12 of his groundfishing vessels and 27 of his permits.

Those vessels and permits will be staying in New Bedford, according to the statement.

“This agreement ensures a major portion of the groundfish fishery remains in the Port of New Bedford, with vessels docked in New Bedford and crewed by local fishermen,” Blue Harvest Fisheries said.

New Bedford Mayor Jon Mitchell has long been vocal about his hope that the permits and vessels would remain in the Whaling City.

Read the full story at the New Bedford Standard-Times

Blue Harvest CEO Decker: PE-backed firm not the catch-share ‘boogeyman’

January 28, 2020 — Forty-two year fishing veteran Stephen Welch recalls with frustration how he and other harvesters in New England were soundly dismissed by regional policymakers.

It was roughly 10 years ago and they were trying to ring alarm bells about new catch-share rules for groundfish, warning that the changes would lead to consolidation within the fishery and the commodification of the various species.

Now that Blue Harvest Fisheries, a large US scallop and groundfish supplier, partly backed by the New York City-based private equity firm Bregal Partners, is on the verge of completing its $19.3 million acquisition of 15 of former fishing mogul Carlos Rafael’s groundfish vessels and their related permits in the Port of New Bedford, Massachusetts, Welch believes that his worst fears are being realized.

The deal, which Undercurrent News first revealed in late August and needs only the approval of the US National Oceanic and Atmospheric Administration (NOAA), promises to give Blue Harvest millions of pounds of quota for Atlantic cod, haddock, plaice, redfish, hake, flounder and pollock. This on top of the quota the company already owns in relation to the five groundfish vessels and 15 scallopers it secured earlier in next door Fairhaven, Massachusetts, and Newport News, Virginia.

Read the full story at Undercurrent News

Blue Harvest still waiting for NOAA approval to acquire Rafael vessels

January 23, 2020 — The US’ National Oceanic and Atmospheric Administration (NOAA) has yet to give New Bedford, Massachusetts-based Blue Harvest Fisheries the approval it needs to acquire 15 groundfish vessels and their related skiffs and permits from Carlos Rafael, CEO Keith Decker told Undercurrent News on Wednesday.

“At this point we do not have NOAA’s approval,” he said, adding that he believes it is the last thing needed before announcing completion of the deal.

Undercurrent asked Decker for a status report on the agreement when it caught up with him here on the sidelines of the National Fisheries Institute’s Global Seafood Market Conference where he is one of more than 400 attendees. Look for many more details from our exclusive interview soon.

As first reported by Undercurrent, Blue Harvest, a US scallop and groundfish supplier backed by Bregal Partners, a New York City-based private investment firm, struck a deal in November that would have it pay $19.3 million to obtain a substantial part of former fishing mogul Rafael’s fleet in New Bedford. The agreement promises to give Blue Harvest millions of pounds of quota of Atlantic cod, haddock, plaice, redfish, hake, flounder and pollock.

Read the full story at Undercurrent News

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

US auction owners seek to spoil Blue Harvest’s deal for Rafael groundfish vessels

December 23, 2019 — Carlos Rafael’s remaining fleet of as many as 35 groundfish vessels and skiffs in the US port city of New Bedford, Massachusetts, may not be under Blue Harvest Fisheries’ Christmas tree after all.

Richard and Raymond Canastra, the founders and owners of the Buyers and Sellers Exchange (BASE), a nearly 26-year-old seafood auction house in New Bedford, Massachusetts, informed the members of New England fishing sector 7 on Friday that they are taking advantage of the group’s right of first refusal (ROFR) rules to seek acquisition of the vessels and their related permits, Undercurrent News has learned from its sources.

Additionally, the Canastras have filed another challenge to Rafaels’ earlier sale of six scallop boats and their related permits to Quinn Fisheries, a longtime New Bedford-based scalloping company, this time in federal court.

Undercurrent reported late last month how documents showed Blue Harvest, a US scallop and groundfish supplier backed by New York City-based private equity Bregal Partners, had signed a purchase agreement to buy the Rafael fleet and all of their associated permits for nearly $25 million. The deal includes millions of pounds of quota for at least eight types of fish in the northeast multispecies fishery, including cod, haddock, American plaice, witch flounder, yellowtail flounder, redfish, white hake and pollock.

Read the full story at Undercurrent News

Carlos Rafael Inks $25 Million Deal with Blue Harvest Fisheries

November 29, 2019 — The highly-anticipated forced sell-off of “Codfather” Carlos Rafael’s fishing fleet appears to be near completion, only months after the convicted criminal unloaded his scallop boats.

Undercurrent News reports that Blue Harvest Fisheries has inked a $25 million deal to buy at least 35 vessels and skiffs from Rafael along with their permits and fishing quotas. Blue Harvest maintains fleets in Fairhaven and in Newport News, Virginia. It is backed by Bregal Partners, a New York City-based private equity firm.

The pending deal with Blue Harvest – which still must survive a “right of first refusal” where other harvesters could step forward – comes as Rafael remains behind bars.

Rafael was arrested in 2016 following a federal sting, and was convicted on 28 criminal counts in 2017. Rafael admitted to raking in illegal profits and gaming the system by mislabeling 700,000 pounds of harvested fish over four years. He also illegally avoided paying taxes. Rafael was sentenced to 46 months in federal prison. To settle a separate civil suit with the National Oceanic and Atmospheric Administration, he was forced to sell his fishing fleet, pay $3 million in penalties, and never engage in the world of commercial fishing again.

Read the full story at WBSM

Blue Harvest tipped as likely buyer of Carlos Rafael’s groundfish fleet

August 22, 2019 — Blue Harvest Fisheries, a US scallop and groundfish supplier backed by private equity Bregal Partners, is believed to have moved to the front of the pack in the chase to nab the 32 groundfish permits and 19 related draggers owned by Carlos Rafael in New Bedford, Massachusetts.

Quinn Fisheries, a longtime area scalloper, appears a lock, meanwhile, to land Rafael’s 11 scallop permits and related vessels, as previously reported.

The competition is on to acquire Rafael’s sizable commercial fishing operation following the civil settlement announced on Monday by the National Oceanic and Atmospheric Administration (NOAA).

Read the full story at Undercurrent News

Massachusetts: Senate candidate Geoff Diehl talks with SouthCoast fishing industry

February 28, 2018 — NEW BEDFORD, Mass. — Geoff Diehl cruised around the Port of New Bedford in an RV Tuesday that maneuvered in and out of small entrances and exits. The red, white, and blue mobile home featured the slogan of the Republican U.S. Senate candidate, “The Real Diehl,” as he looked to learn the reality of the fishing industry in the area.

“If I’m going to be voting on any legislation that affects any industry,” Diehl said, “I better darn well be listening to the people who work in that field.”

Diehl made four stops in the area, which began with Mayor Jon Mitchell and concluded with a meeting with three members on the board of Sector 9 as well as the sector’s lawyer.

He spoke with the sector for more than a half hour as the members provided details of ban installed by NOAA that’s prevented about 80 fishermen from groundfishing since November.

“This thing that happened here showed how tragic it is for the support businesses,” Tor Bendiksen, manager of Reidar’s Trawl Gear and Marine Supply, said.

Diehl questioned what incumbent Sen. Elizabeth Warren has done to facilitate discussions between NOAA. The sector said it’s only met with U.S Rep. Bill Keating’s office, while it’s incurred challenges trying to meet with the Warren and Sen. Ed Markey.

“This is one of the most important industries in Massachusetts,” Diehl said before promising to look into the issue immediately.

Following Diehl’s meeting with Mitchell, the current state representative serving Plymouth’s 7th District stopped at New England Marine Engineering and Supply Inc. There, he spoke with President Paul Nosworthy, who emphasized that fishermen aren’t destroying the ocean.

“They’re blaming it all on the fishermen,” Nosworthy said. “But when you stop and you think about what the chemical companies and the sewer treatment guys, what they’re putting in the ocean is killing, literally killing (marine life).”

From North Front Street in New Bedford, Diehl crossed the the port and even waited in a bridge closure delay before discussing commercial fishing with Patrick Hughes II at Blue Harvest Fisheries in Fairhaven.

Read the full story at the New Bedford Standard-Times