Carlos Rafael Archives - Saving Seafood

Frozen fish: NMFS approves Sector IX management plan

April 25, 2018 — Fishing boats in New England’s Sector IX groundfish fleet that were in danger of being barred from leasing groundfish quota moved into Sector VII in late March in order to recoup losses from a post-Carlos Rafael trip shutdown of the New Bedford groundfish industry. But the process of approving new operating plans will keep that quota frozen until midsummer at the latest.

NMFS reported that Sector IX was shut down completely in order to determine how much of the sector’s quota was illegaly used to cover Rafael’s quota evasion scheme.

Under a new plan operating plan put forward by the sector, which was narrowly recommended for approval by the New England Fishery Management Council with a 7-5-5 vote, NMFS will treat illegal catch in each fishing year as if it was known immediately after the end of the season, eliminating any carryover of unused quota into the next fishing season if there was any illegal fishing.

The council recommended that that NMFS authorize the “lease only” operations plan “with the condition that all overages attributable to the known misreporting are paid in full.

Read the full story at National Fisherman

Massachusetts: New Bedford fishermen docked for season’s start

April 23, 2018 — The New Bedford groundfishing fleet will remain at dock — and without the ability to lease quota to other fishing entities — when the 2018 fishing season dawns on May 1. What happens after that is anybody’s guess.

NOAA Fisheries staffers informed the New England Fishery Management Council earlier this week that operations plans for New Bedford-based Northeast Fishing Sectors VII and IX will not be completed in time for the opening of the 2018 fishing season.

But the discussion following the briefing, as well as the council’s widely split vote on a draft recommendation to NOAA Fisheries, reflected stark divisions within the council and the Northeast groundfish fishery at large over how NOAA should resolve the issues borne from the long-standing catch misreporting and conviction last year of New Bedford fishing mogul Carlos Rafael.

It also recommended that, following full repayment of the overages associated with Rafael’s cheating, NOAA Fisheries work with Sector VII “to ensure that the 2018 sector operation plan and associated conditions” are fully implemented.

Read the full story at the Gloucester Times

NE Fishery Management Council Divided Over New Plan For Rafael’s Fishing Sector

April 20, 2018 — In a divided vote, the New England Fishery Management Council is backing a new operations plan for a sector of New Bedford boats that have been prohibited from fishing. However, the council said the plan should only be approved if certain conditions are met.

The sector of boats, called Sector IX, has been banned from catching groundfish, such as cod and haddock, for the past five months. Federal regulators from the National Oceanic and Atmospheric Administration made the decision to prohibit all sector activity after fishing mogul Carlos Rafael, who has also been referred to as “The Codfather,” pleaded guilty to misreporting the numbers of fish his boats were catching.

Now, Sector IX wants to be operational again as a “lease-only” sector, which means the boats would remain docked but could still make money by leasing their fishing allocation to other fishermen.

Read the full story at Rhode Island Public Radio

Massachusetts: NOAA Plans Keep Sector IX Boats Moored

April 19, 2018 — MYSTIC, Conn. — Officials from the National Oceanic and Atmospheric Administration say fishing vessels that transferred to Sector VII from Sector IX in New Bedford may have to wait until mid-summer to begin leasing quotas.

NOAA closed down fishing out of Sector IX in order to assess just how much quota was illegally used up by fishing magnate and now convicted “Codfather,” Carlos Rafael.

At a meeting of the New England Fishery Management Council on Wednesday, NOAA proposed a plan for Sector IX that would treat illegal catch in each fishing year as if it was known immediately after the end of the season, eliminating any carryover of unused quota into the next fishing season if there was any illegal fishing.

Read the full story at WBSM

New Bedford Mayor Jon Mitchell to NEFMC: Sector IX Closure Is Hurting New Bedford’s Economy

April 18, 2018 — The following statement was delivered to the New England Fishery Management Council today on behalf of New Bedford, Massachusetts Mayor Jon Mitchell. Mayor Mitchell also serves as Chairman of the New Bedford Port Authority:

Thank you Chairman Quinn and Members of the Council for this opportunity to communicate about a matter of ongoing concern to the Port of New Bedford, namely the impact that the closure of Sector 9 of the Northeast Fishery is having on groundfishing operations in the Port.

The NOAA decision has had–and continues to have–troubling economic consequence for the Port of New Bedford and our local economy. It has triggered significant business losses among local companies that provide support services to the commercial fishing fleet, and has meant the loss of livelihood for dozens of local fishing families.

It is important for all parties to keep in mind the numerous New Bedford businesses and families who have played no direct role in the operation of Sector 9, but who now find themselves in severe financial distress as a result of the Sector’s closure.

While the significant human cost of the closure cannot be adequately measured, Professor Dan Georgiana of the School of Marine Science and Technology at the University of Massachusetts (SMAST) has used a standard NOAA economic impact model to estimate the economic damage being done to the Port of New Bedford. His analysis found that the Port suffered roughly $12 million in economic losses in just the first twenty-five days after the closure went into effort on November 20th of last year.

This week marks the fifth full month of the Sector 9 closure, and the losses continue to mount. If one extrapolates from Professor Georgiana’s original analysis, it is not unreasonable to suggest that the Port of New Bedford may now have cumulatively suffered tens of millions of dollars in losses in the last five months.

This figure includes the impacts on harvesting, processing, wholesale and retail market activity, but does not include the cost to the public of unemployment compensation or the impact on businesses that supply vessels or process groundfish.

None of this is to suggest that the one person at the center of the controversy should not be punished severely. Carlos Rafael should be held fully accountable for his actions. I emphasize rather that the Fisheries Service should undertake its rulemaking, as it is statutorily required, with the interests of the Port and its businesses in mind. At a minimum, this means that it should complete the rulemaking “expeditiously”–as NOAA’s notice of withdrawal said it would–so that the effected fishermen and businesses can get back to work without further delay.

The Service also noted it had to calculate the amount of “overage” to certain groundfish stocks caused by Rafael’s fraud before it completed its rulemaking. Yet the Service has had, for some time now, all the reasonably available information to complete this loss calculation. Again, I urge the Service to complete these calculations and its rule-making with all deliberate speed.

The clock is ticking against New Bedford fishermen and shore-side businesses. A resolution of this matter therefore cannot come soon enough for the Port of New Bedford. Thank you for your consideration.

New England Council to Take up Issue of New Bedford Sectors IX and VII on Wednesday

April 17, 2018 — SEAFOOD NEWS — The New England Fisheries Management Council will take up the issue of the operations plans submitted by sector IX and sector VII, which represent the majority of groundfish vessels in New Bedford.

Many of these vessels, which were formerly members of Sector IX, have been prohibited from fishing until Sector IX came up with an acceptable mechanism to account for the illegal fishing and overages done by vessels belonging to Carlos Rafael that were in the sector.

The sector was strongly criticized by NMFS for failure to have an adequate plan to account for overharvests, to do proper record keeping, and to then take necessary steps to payback fish that was illegally harvested.

Instead of coming to an agreement, on the last day for filing sector membership, the vessels in Sector IX decamped en masse to Sector VII, which otherwise would have been shut down.

Sector VII vessels that have come from Sector IX still won’t be able to fish until a plan to pay back illegal harvests has been approved, but the vessels hope that by moving to an operating sector they may be able to lease their quotas.

Sector VII has written the council to say that for many years they have shared a sector manager with sector VIII, another sector in New Bedford. They said that with reduced catches, it was no longer viable for them to operate as a stand alone sector.

Sector manager Linda McCann wrote that they have one vessel groundfishing, and six vessels fishing for monkfish, and this is too small an amount of activity to sustain a separate sector.

She says the plan to merge with sector 8 was developed months ago, and communicated to NMFS.

She says “We didn’t realize we needed to justify to the fishing world why these internal decisions were made, or how we handle our internal business affairs. However, we feel compelled to do so in sight of recent politics, attacks and mischaracterizations of facts. Let us be clear, the decisions made to merge sector 7 membership into sector 8 has nothing to do with the sector 9 situation of the Carlos Rafael situation. “

Another letter, from the Northeast Seafood Coalition urges the council to set clear goals.

“As many Council members are painfully aware, the 28 offenses to which Mr. Rafael pled guilty and is now incarcerated for have created enormous turmoil throughout the fishery and the region. Part of the turmoil concerns the broader fishery management implications of starting a new fishing year with such a significant portion of the fishery’s sub-ACL not being made available to the fishery.

NSC recommends that the Council provide the Agency with their primary objectives and request the Agency use their administrative authority to consult with the respective sector boards to achieve the stated objectives.

NSC recommends the following objectives:

ACE overages be identified and paid back to the system. The timing and result of the resolution shall be consistent with a result that would have been possible had the 2018 NEF Sector 9 roster been the same as 2017.
Conditional upon resolution of the NEF Sector IX overages, ensure the groundfish sector system has access to the ACE associated with permits that are enrolled in NEF Sector VII.
Work with the NEF Sector VII to ensure the conditions they’ve listed in their March 26, 2018 letter are met and upheld.”

This story was originally published by Seafood News, it is republished here with permission.

Massachusetts: Series of Hearings on Offshore Wind Starts in New Bedford

April 17, 2018 — NEW BEDFORD, Mass. — The waters off the coast of Massachusetts have been a popular topic of conversation as of late. From the ban of commercial fishing in nearly 5,000 square miles of coastal waters in 2016 to the ripple effect of the restrictions put on the industry following the indictment of “Codfather” Carlos Rafael, the area has procured the interests of the local, state, and federal government.

It’s also developed an interest in the offshore wind industry from the government as well as private enterprise, with companies already establishing a foothold in the area. One of those companies, Vineyard Wind, is planning to construct and operate turbines in an area just 14 miles south of Martha’s Vineyard, if awarded a state contract.

The federal Bureau of Ocean Management (BOEM) along with representatives of Vineyard Wind and the Massachusetts Energy Facilities Siting Board kicked off a series of public meetings in New Bedford detailing the project on Monday night.

At the meeting, held at the Waypoint Event Center along the city’s waterfront, the public was provided an overview of the plans for the project’s development in the federal waters off the coast of the state. Those in attendance also got the opportunity to either submit questions and comments to BOEM privately or speak out to them directly at the meeting.

Environmental Coordinator of BOEM Brian Krevor began the meeting with a presentation of the federal guidelines, laws, and construction operation plan for offshore wind development. Currently, two of the four areas designated for wind farms have been acquired by two companies, Bay State Wind and Vineyard Wind. The remaining two areas are still open for bidding.

Read the full story at WBSM

Fishing council to hear sectors’ post-Rafael plans

April 16, 2018 — The New England Fishery Management Council will be updated on the groundfish crisis involving several New Bedford-based fishing sectors when it convenes for three days of meetings next week in Mystic, Connecticut.

The groundfish presentation by staff from the Gloucester-based Greater Atlantic Regional Fisheries Office will be the centerpiece of the groundfish report on Wednesday and is designed to provide “an overview of (Northeast Fishing) Sector IX’s steps to address its shortcomings, as well as a summary of Sector IX’s operations plan,” according to the agenda for the meetings.

“The New Bedford sector has submitted its operations plan to GARFO and this will be an overview of what they’ve done to address the problems and what they need to do to have a new plan approved,” said council spokeswoman Janice Plante.

Plante said the presentation will not include comment from officials with the New Bedford fishing sectors.

NOAA Fisheries shut down Sector IX last November, withdrawing its operation plan for the remainder of the 2017 fishing season and into the 2018 season set to begin May 1.

The extraordinary move came in the wake of the conviction and sentencing of New Bedford fishing kingpin Carlos Rafael on charges of tax evasion, money laundering and bulk smuggling.

Read the full story at the Gloucester Times

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

Sector IX vessels make a move to lease quota

March 30, 2018 — NEW BEDFORD, Mass. — Fifty-five vessels have left Sector IX, but they still can’t fish. However, they can lease their groundfish quota.

The 55, including four Carlos Rafael vessels subject to forfeiture, were submitted to be included in Sector VII for the 2018-19 fishing season, according to NOAA and Sector VII.

The move comes after six months of negotiations with NOAA in trying to get an operational plan approved, which would have lifted the groundfishing ban.

Had a move not been made, the vessels would have remained in Sector IX without the ability to lease quota. Three Sector IX vessels will remain in the sector.

The deadline for vessels to change sectors was Monday.

“What are we supposed to do,” Sector VII President Richie Canastra said. “The enrollment was Monday where you have to choose your sector for the 2018 and 2019 fishing season. No answer (from NOAA) was there yet. So those vessels and the permits owned by Carlos went to Sector VII.”

Canastra said the vessels affected by NOAA’s ban can only return to fishing with authorization from the agency or if they are sold to an independent party.

“It’s really straight forward. None of this was done to try to pull the wool over someone’s eyes or being sneaky,” Canastra said. “I just think it’s the right thing to do. I really believe the people in the industry will understand it’s the best move for everyone.”

The shift in sectors also included the additions of Richie Canastra as President, Tor Bendiksen as Treasurer and Cassie Canstra as Clerk to Sector VII.

In a letter from NOAA’s Regional Administrator Michael Pentony to the Chair of the New England Fishery Management Council John Quinn, he confirmed that the vessels would be allowed to transfer quota. He also confirmed that all vessels owned by Rafael would be inactive, unless they are sold to in independent party.

Read the full story at the New Bedford Standard-Times