Saving Seafood

Another New Bedford Fish Dealer Pleads Guilty to Tax Evasion

December 21, 2017 — SEAFOOD NEWS — George F. Estudante, a former New Bedford seafood wholesaler, pleaded guilty in a Boston federal court on December 18 to two counts of failing to file tax returns and one count of filing a false income tax return.

The owner of Basic Fisheries failed to file an income tax return in 2010 despite receiving approximately $1,418,629 in payments. In 2011 he failed to file a tax return despite receiving a total of $1,607,726 for the year. In 2012 he filed a tax return saying that he received $533,078 in gross receipts. His bank account for that year showed that he received over $740,000.

Estudante will be sentenced on March 13, 2018. He faces a sentence of no greater than one year in prison, one year of supervised release and a fine of $25,000 for failing to file an income tax return. He also faces no greater than three years in prison, one year of supervised release and a fine of $100,000 for filing a false income tax return.

This is the second person in the New Bedford seafood industry in the last month to plead guilty to tax evasion. On November 28 Orlando Cardoso, a production manager at Seatrade International in New Bedford, failed to report $75,000 in earnings on his 2012 and 2013 tax returns.

This story originally appeared on Seafoodnews.com, a subscription site. It is reprinted with permission.

 

Rockport Premiere Set for Film on ‘Relentless Destruction’ of Ground Fishing Industry

November 13, 2017 — The following was released by Fishing Partnership Support Services:

A documentary film dealing with the devastating impacts of federal regulations on the lives of New England ground fishermen will have its world premiere on the weekend before Thanksgiving on Cape Ann.

“Dead in the Water,” produced and directed by Rockport native and professional filmmaker David Wittkower, will be screened for the first time in public at the Rockport High School Auditorium on Saturday, Nov. 18, at 3:00 p.m.

The film was shot in different coastal towns and it features scenes and interviews with area fishermen, their spouses and other family members; advocates for fishermen; elected officials; and community activists.

“Dead in the Water” was two-and- a-half years in the making.

“This film opens the doors for the world to see how difficult and dangerous the life of a fisherman is,” said John Bell, a former three-term mayor of Gloucester (2002-08). “On top of that, the impact of misguided federal regulations on fishermen has never been presented as powerfully as it is in ‘Dead in the Water.’ This film packs a real punch. It stays with you long after you’ve seen it.”

Wittkower, a graduate of the American Film Institute who’s been living and working in Los Angeles since 1981, describes “Dead in the Water” as an examination of “the relentless destruction of the New England ground fishing industry through government regulations, bad science, and the growing, but
mistaken, belief that everything has been overfished and there aren’t any fish left in the oceans.”

The idea for the film came from a casual conversation he had on a sidewalk in Gloucester three years ago. “I was back in Rockport on a visit and I drove into Gloucester and noticed there were very few fishing boats in the harbor,” Wittkower said. “I asked someone, ‘Where’s the fleet?’ and he said, ‘What fleet? The fleet’s been dwindling for years, and this is what’s left.’ ”

He started asking more questions about the plight of the town’s fishermen and was soon directed to Angela Sanfilippo, the longtime president of the Gloucester Fishermen’s Wives Association. Sanfilippo encouraged him when he raised the possibility of telling the story of the vanishing fleet of ground fishing boats and their crews on film. “I could see that David was sincerely interested in this topic,” said Sanfilippo, “and I quickly figured out he had the skills and track record to make a serious documentary on it, a film that could generate a lot of interest, here and elsewhere.”

The Gloucester Fishermen’s Wives Association decided to help and support Wittkower as much as possible. “The first time I saw the rough cut of ‘Dead in the Water,’ I knew we had done the right thing,” said Sanfilippo. “This is something special.”

One of the many friends and professional colleagues of Sanfilippo who appears in “Dead in the Water” is J.J. Bartlett, president of Fishing Partnership Support Services. He notes that physicians who have studied the physical and emotional effects upon ground fishermen of the changes in the industry “have concluded that 87 percent of them are suffering from symptoms of post-traumatic stress disorder (PTSD).”

Bartlett said, “When you watch ‘Dead in the Water,’ you’ll understand why that’s so. And you’ll leave the theater wanting to tell your friends, ‘You have to see this film.’ “Following the premiere in Rockport on Nov. 18, Wittkower is planning a tour where he will show the film in multiple locations and to a variety of audiences. That tour will begin in Massachusetts, with subsequent showings likely in Boston and New Bedford, and will extend to Maine and other coastal
states. Simultaneously, he will be trying for a nationwide showing by getting the film on HBO, Netflix or Amazon.

“Dead in the Water” is Wittkower’s fifteenth documentary film. He has won many awards for his work, including one from the National Cowboy & Western Heritage Museum for a film he did on Lane Frost, a famous rodeo bull rider who was accidentally killed at a riding event. He’s hoping now that “something better than an award” will come from his latest project. Said Wittkower, “I’m hoping to increase public support for U.S. fishermen. I want to help keep fishing jobs in this country. If ‘Dead in the Water’ can do that, I won’t need any more awards.”

The film was recently accepted into the Depth of Field International Film Festival competition under three categories: Documentary, Direction and Cinematography.

Rockport High School is located at 24 Jerdens Lane. Tickets to the premiere cost $20 apiece and may be purchased at the door or in advance by calling 978-282- 4847 or going to the Gloucester office of the Massachusetts Fishermen’s Partnership at 2 Blackburn Center. A portion of all of the proceeds from showing the film on Nov. 18 will go to the Fishermen and Families Fund at the Gloucester Fishermen’s Wives Association.

Sheriff’s captain accused of helping Rafael smuggle cash

October 26, 2017 — BOSTON — A Massachusetts sheriff’s office captain has been indicted on charges he helped a fishing magnate known as The Codfather smuggle profits of an illegal fishing scheme to Portugal.

The U.S. attorney’s office for Massachusetts says Jamie Melo was indicted by a federal grand jury on Wednesday on charges of bulk cash smuggling, structuring and conspiracy. The Bristol County sheriff’s office captain was arrested in August.

Read the full story at the Boston Globe

Judge issues forfeiture order in Rafael case

WASHINGTON (Saving Seafood) — October 11, 2017 — Judge William G. Young of the U.S. District Court, District of Massachusetts, has released his order on the question of forfeiture in the Carlos Rafael case. 

The judge ordered Mr. Rafael to forfeit his 50 percent interest in four vessels in which his ownership stake is appraised at $2.2 million, and his half interest in 4 permits with 34 endorsements. The government had sought forfeiture of Mr. Rafael’s interest in 13 vessels. In the “Memorandum and Order Concerning Forfeiture” the judge outlined the Constitutional issues, case law, and sentencing guidelines limiting the magnitude of the forfeiture, stating “the government erroneously seeks to multiply the maximum fine by each of twenty-three counts of conviction for violations of the Lacey Act. That’s not how the guidelines work.”

He stated “a forfeiture sanction of $2,000,000+ in assets accords well with Rafael’s suggested $2,800,000 cash forfeiture. Rafael, of course, would agree to this cash forfeiture in a last ditch effort to save his fleet entire and, apparently, sell it as a whole. The government will not agree- it seeks the forfeiture of actual Vessels and Permits.”

He also noted that he “stayed away from the ‘Athena’ and the ‘Hera II’ because they have scalloping permits and scalloping is not involved in this wrong doing.”

The following summary is taken from the text of the order. The full order is available here.

The government sought forfeiture of 13 fishing vessels and permits.

Rafael owns the “Athena” outright and has a one—half interest in the remainder of the fleet. Based on the current market, the estimated gross value of the Vessels and Permits is approximately $30,000,000 and there are approximately $2,000,000 to $3,000,000 in liens and attachments on the Vessels and Permits, reducing the value of the Vessels and Permits to approximately $27,000,000 – $28,000,000.

The relevant statute mandates forfeiture.

Because Rafael violated the Lacey Act, and conspired to violate the Act, this Court must order forfeiture to the extent permitted by the Constitution.

The Eighth Amendment provides: “Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.”

The court found:
1. Rafael falls into the class of persons to which the criminal statute was principally directed.
2. The requested forfeiture would not deprive Rafael of his livelihood.
3. The harm caused by the defendant was substantial.

After carefully calculating the sentencing guidelines as required by law, the Court derived a guideline range of not less than 51 nor more than 63 months imprisonment, a fine range of $20,000-$200,000, restitution of $108,929 supervised release from one to three years, and a mandatory special assessment of $2,800 ($100 on each of the 28 counts of conviction).

Following the principles set forth in 18 U.S.C. § 3553(a), with specific emphasis on the need for specific and general deterrence in light of Rafael’s extensive flouting of the fishery reporting regulations and the harm it caused, this Court sentenced him to 46 months in custody, three years of supervised release (with a special condition barring him from the fishing industry), a special assessment of $2,800, and a fine of $200,000, the maximum guideline fine provided for Rafael’s adjusted offense level.

…This Court in order to carry out the Congressional mandate must decree forfeiture to the full extent permitted by the Eighth Amendment. …the guidepost is relatively clear; the forfeiture must not be grossly disproportionate to the maximum fine under the sentencing guidelines.

The government erroneously seeks to multiply the maximum fine by each of twenty-three counts of conviction for violations of the Lacey Act. That’s not how the guidelines work.

United States v. Bajakajian, 524 U.S. 321, 334 (1998) makes clear that a forfeiture of 70 times the maximum fine is grossly disproportionate, nothing in United States v. Jose, 499 F.3d 105 (1st Cir. 2007) suggests that 4 times the maximum guidelines fine is the outer limit of proportionality.

The Court, accepting the appraisals and listing of permits found in Rafael’s Opposition to Forfeiture, Exhibit — seeks to maximize, within constitutional limits, the number of vessels and permits to be forfeited. I have stayed away from the “Athena” and the “Hera II” because they have scalloping permits and scalloping is not involved in this wrong doing.

By adhering to our present quasi-determinate form of sentencing Congress has at the same time limited its largely unfettered legislative power in the premises by delegating to the Sentencing Commission the power to set fine ranges and, by extension, the permissible scope of constitutional forfeiture. Moreover, a forfeiture sanction of $2,000,000+ in assets accords well with Rafael’s suggested $2,800,000 cash forfeiture. Rafael, of course, would agree to this cash forfeiture in a last ditch effort to save his fleet entire and, apparently, sell it as a whole. The government will not agree- it seeks the forfeiture of actual Vessels and Permits.

Accordingly, Carlos Rafael shall forfeit all right, title and interest he may have in the “Bull Dog” ($661,3505 – 8 permits), the “Olivia & Rafaela” ($458,550 – 11 permits), the “Lady Patricia” ($338,800 — 4 permits), and the “Southern Crusader II” ($800,150 – 11 permits), i.e. four fish boats with a total appraised value for Rafael’s interest of $2,258,850 and 34 permits.

Tuna lab leaving Gloucester, Mass.

Lutcavage, colleagues to work out of UMass Boston

October 6, 2017 — For the first time in almost seven years, the highly-regarded Large Pelagics Research Center affiliated with the University of Massachusetts no longer has a Gloucester address.

The center, which has performed groundbreaking and internationally acclaimed research on the spawning habits and habitats of Atlantic bluefin tuna, closed up shop Thursday at its most recent home — the Americold-owned building at 159 E. Main St. in East Gloucester.

Americold has been actively shopping the site for months and recently informed the center it would have to vacate its office space by the end of October. Molly Lutcavage, the founder and executive director of the center, and Tim Lam, an assistant research professor, didn’t bother waiting until the end of the month.

“It’s sad to think that we won’t have a Gloucester presence anymore,” Lutcavage said. “For now, I guess we’ll be working out of our houses and garages.”

The center has been forced to navigate some rough seas in the past few years, changing its affiliation within the University of Massachusetts system and being forced out of its original facility at Hodgkins Cove, where it had been housed since 2011.

Read the full story at the Gloucester Times

NEFMC SSC Meeting, October 12, 2017, Live Streaming Information

October 4, 2017 — The following was released by the New England Fishery Management Council:

The New England Fishery Management Council’s Scientific and Statistical Committee (SSC) will meet on Thursday, October 12, 2017.  The public is invited to listen via webinar or telephone.  Here are the details.

MEETING LOCATION:  Hilton Garden Inn, Boston Logan Airport, 100 Boardman Street, Boston, MA.  Hotel information is available here.

START TIME:  10:00 a.m.

WEBINAR REGISTRATION:  Online access to the meeting will be available at: https://register.gotowebinar.com/register/3726401422414349827.

There is no charge to access the meeting through this webinar.

CALL-IN OPTION:  To listen by telephone, dial +1 (562) 247-8321.

The access code is 818-682-657.

Please be aware that if you dial in, your regular phone charges will apply.

AGENDA:  The SSC will (1) review information provided by the Council’s Scallop Plan Development Team (PDT) and recommend overfishing limit (OFL) and acceptable biological catch (ABC) levels for Atlantic sea scallops for fishing year 2018, as well as default OFL and ABC levels for 2019; (2) review information provided by the Council’s Whiting PDT and recommend OFLs and ABCs for the northern and southern stocks of silver hake and, separately, for red hake for fishing years 2018-2020; and (3) discuss other business as necessary.

MATERIALS:  Meeting materials, as they become available, will be posted on the Council’s website at SSC October 12, 2017 documents.

QUESTIONS:  Contact Joan O’Leary at (978) 465-0492 ext. 106, joleary@nefmc.org or Janice Plante at (607) 592-4817, jplante@nefmc.org.

Constitutionality of seizing Carlos Rafael’s permits in question

September 27, 2017 — BOSTON –Judge William Young decided half of Carlos Rafael’s fate on Monday: The New Bedford fishing mogul was sentenced to 46-months in prison with three years supervised release and a $200,000 fine.

The other half, which Young continues to take under advisement, involves the 65-year-old’s 13 groundfish vessels and permits.

In court Monday, Young repeatedly questioned the constitutionality of the forfeiture, citing the excessive fines clause in the Eighth Amendment.

Young said courts with higher authority have heard and decided that fines exceeding four-times the maximum guideline are unconstitutional.

Regardless of how many permits Young orders to be forfeited, he made it clear he has no authority to decide what’s done with them.

NOAA’s guidelines call for the permits to be redistributed throughout the Northeast, which is why for months organizations and politicians have publicly called for redistribution or a deal that would remove Rafael from the industry. Many arguments focused on all 13, without consideration of a partial forfeiture.

Argument against redistribution

Allyson Jordan actually contributed to a portion of Rafael’s groundfish permits.

She sold two boats and four groundfish permits. Jordan said Maine’s fishermen had no interest in the permits until Rafael entered the picture.

“He bought permits and boats to make his business survive,” Jordan said. “I don’t believe they should be given back to the state of Maine. The state of Maine did nothing to help my industry, not to mention my business.”

“Everyone is coming out of the woodworks now,” Jordan said. “To be honest, they could have bought the permits.”

Support of redistribution

The Cape Cod Commercial Fishermen’s Alliance, which also manages the Cape Cod Fishermen’s Trust, also contributed to Rafael’s enterprise, but argued for redistribution of the permits as well as better monitoring.

According to Seth Rolbein, the director of the Cape Cod Fisheries Trust, Rafael acquired more nearly a million pounds of quota from the Trust.

From 2011 through 2015, the Trust leased 992,646 pounds of quota. The Trust has no records from 2010 and didn’t lease any to Sector IX after the U.S. Attorney released the indictment, tying Rafael to falsely labeling fish quotas.

“Our priority is to service our fishermen and our community,” Rolbein said. “If there are fish stock that our community is not using that we can not lease out at our subsidized rate to our own fishermen, we then will lease out to other sectors. The trust will lease fish to other sectors. But we will only do that once we’re satisfied that our own fishermen can’t use or don’t have use for that quota.”

What’s next?

The defense revealed Monday that Richard and Ray Canastra, of Whaling City Seafood Display Auction, have entered a Memorandum of Agreement to purchase Rafael’s entire fleet. Neither the U.S. Attorney nor NOAA have taken a final position on the sale.

Read the full story at the New Bedford Standard-Times

Carlos Rafael argues against vessel forfeiture, poses new buyer for fleet

September 20, 2017 — New Bedford, Massachusetts-based fishing magnate Carlos “Codfather” Rafael has challenged the government’s proposal to seize his fleet of 13 groundfish vessels, arguing that the act is unconstitutional, according to court documents filed by his legal team.

Forfeiting the vessels and their corresponding permits, which are allegedly worth more than USD 30 million (EUR 25 million), would be a violation of the excessive fines clause of the Eighth Amendment of the U.S. Constitution, Rafael’s lawyers said in court documents submitted for review to U.S. District Court judge William Young in Boston.

While U.S. sentencing guidelines place the legal maximum fine at no more than USD 250,000 (EUR 208,460) in cases such as this, Rafael’s legal team has suggested the Codfather forfeit USD 2.8 million (EUR 2.3 million), or double the value of the 782,812 pounds of groundfish Rafael admitted to misreporting.

“Such an order will serve the purposes of punishment (including severely punishing Mr. Rafael and deterring others) within constitutional bounds without incurring the devastating effects on his own business and innocent third parties that are threatened by the government’s motion,” Rafael’s lawyers wrote.

Issues of ownership regarding the seized groundfish fleet have cropped up over the course of Rafael’s trial. Rafael’s personal share of the vessel fleet up for grabs is valued at nearly USD 19 million (EUR 15.8 million), the balance of which belongs to his wife, Conceicao, according to the Codfather’s legal team. In a petition filed in Massachusetts on 28 August, Conceicao Rafael claimed ownership of 50 percent of eight fishing vessels and three fishing companies – My Way Fishing, Corvo, and S & S Fishing – that are tentatively subject to forfeiture by the United States government in relation to her husband’s criminal case.

Read the full story at Seafood Source

MASSACHUSETTS: Aquarium hosting symposium of female shark scientists

September 12, 2017 — BOSTON — Girls interested in marine science will get a chance to hear from women making waves in the field this month at the New England Aquarium.

The aquarium and the Atlantic White Shark Conservancy will host the symposium featuring 10 female shark experts from around the world who will present ideas and research on various shark topics to the general public and a group of 150 high school and college-aged women.

Titled ‘Shark Tales: Women Making Waves,’ the symposium is organized by the Gills Club, an education initiative of the Atlantic White Shark Conservancy based around getting girls involved in science.

Read the full story at FOX 25

A Bacteria That Thrives In Warmer Waters Keeps Mass. Oyster Fisheries On High Alert

August 31, 2017 — Massachusetts loves its local oysters from places like Wellfleet and Duxbury. The state’s bivalve business is booming along with increased consumer demand. These days there’s no shortage of $1 oyster specials and oyster-centric restaurants around here.

But the ways oysters are harvested and handled have become more involved and challenging since 2013. That’s when bacteria linked to warming waters appeared in our marshes for the first time.

The result was an outbreak of gastrointestinal illness caused by Vibrio Parahaemolyticus — Vp or Vibrio for short. (To be clear, this is different from norovirus, which led to a closure of shellfish beds in Wellfleet last year.)

In response to the Vp bacteria’s emergence in New England, the state implemented a Vibrio Control Plan. Here’s how those state efforts to control bacterial infection have been affecting people in the oyster industry.

‘The Waters Are Warmer Than They Used To Be’

At Select Oyster Bar in Boston, you can find a rotating selection of Massachusetts oysters on-the-half-shell — Moon Shoal petites from Kingston, Ichabods from Plymouth and Wellfleet Puffers.

For about a dozen years Select’s chef-owner Michael Serpa has been serving mollusks in Boston establishments, including the cult-favorite Neptune Oysters in the North End. “I’ve seen a lot of oysters,” he told me, smiling.

Read and listen to the full story at WBUR