Saving Seafood

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

Blue Harvest CEO expects 15 Rafael vessel deal to close within weeks

January 14, 2020 — Now that their only competitor has dropped out of the bidding, Keith Decker, the CEO of Blue Harvest Fisheries, expects to close his company’s deal for 15 of Carlos Rafael’s groundfish vessels in the US port of New Bedford, Massachusetts, within the next few weeks, The Standard-Times, the community’s local newspaper, reported Friday.

“At this time, no, I don’t see any further impediments to closing the transaction,” he reportedly told the newspaper, adding that Blue Harvest plans to keep the vessels in New Bedford.

Undercurrent News broke the news on Jan. 8 that Richard and Raymond Canastra, the founders and owners of the Buyers and Sellers Exchange, New Bedford’s main seafood auction, have withdrawn their offer to acquire the vessels and their related permits.

The Canastras, back on Dec. 20, attempted to use a “right of first refusal” rule in New England’s Sector VII, which gives members of the greater  Northeast Sector Service Network — including BASE — 30 days to match any offer for vessels by companies or persons from outside the network, jumping ahead of Blue Harvest and its $19.3 million bid made on Nov. 21. The Canastras said they planned to sell the boats and their permits to individual harvesters in New Bedford. However, the two brothers said they lost their financial backers when Blue Harvest filed a lawsuit, on Dec. 23, in a Massachusetts state court.

Read the full story at Undercurrent News

Concerns raised with Rafael boat deal

January 13, 2020 — By the start of the new fishing year on May 1, Carlos Rafael, once owner of one of the largest fishing fleets in the country and known as the “Codfather,” will officially be little more than a memory on the New Bedford waterfront.

According to his attorney, John Markey, Rafael will have sold off all of his fishing empire as part of a settlement agreement with the National Oceanic and Atmospheric Administration, and will be out of the fishing industry forever.

“The Rafaels committed to NOAA to sell their fishing assets and they did that,” Markey said Friday.

Rafael has less than two years left to serve of a 46-month prison sentence. 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 didn’t possess the necessary quota.

In August, he reached a settlement agreement with NOAA to pay more than $3 million in fines, sell off his fleet by December 31, 2020, and leave the fishing industry forever.

Read the full story at the Cape Cod Times

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

Rafael has deals for four more vessels, brings fleet fire sale close to completion

January 8, 2020 — Carlos Rafael has moved another step closer to completely removing himself from the New England commercial fishing scene, successfully unloading at least four more of his groundfish vessels, Undercurrent News has learned.

Between the Thanksgiving and Christmas 2019 holidays, according to sources, Rafael’s family and his New Bedford, Massachusetts-based attorney, John Markey, Jr., have succeeded in helping the former fishing mogul sell the:

  • Bulldog (a 22-year old, 75.4-foot vessel with a 855 HP engine) for $1.4 million;
  • Hera (a 31-year-old, 80.2-foot vessel with a 850 HP engine) for $1.2m;
  • Drake (a 30-year-old, 77.7-foot vessel with a 575 HP engine) for $1m; and
  • the Hercules (a 36-year-old, 76.1-foot vessel with a 575-HP engine) for $800,000.

Each vessel maintains small to large amounts of quota on the northern Atlantic Coast for cod, haddock, plaice, redfish, hake, flounder and/or pollock.

Read the full story at Undercurrent News

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

December 26, 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, also in New Bedford,  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

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

NOAA: Rafael’s misreported fish ‘disappeared’ at Whaling City auction

December 10, 2019 — A NOAA official has charged that if federal officials were not watching when Carlos Rafael offloaded fish at the Whaling City Display Auction, the catch simply “disappeared.”

“If there was no observer on the boat, no dockside monitor, no state environmental police, no NOAA law enforcement officer, the fish would just simply disappear,” NOAA Special Agent Troy Audyatis said, “Thousands upon thousands of fish would simply disappear.”

Audyatis made the charge at a Dec. 3 meeting of the New England Fisheries Management Council while making the presentation “Catching the Codfather,” and said the New Bedford display auction was the location where Rafael offloaded much of the thousands of pounds of fish that were either under or misreported.

“Any given day fish would just disappear. There’s fish that he sold [that] he didn’t report having available for sale to NOAA and he didn’t buy from a third party, but yet he sold thousands of pounds of fish that day,” Audyatis said.

If fishing boat owners don’t report their catch to NOAA (the National Oceanic and Atmospheric Administration), there is no way for the federal government to know how much of a given species is in the ocean. Federal regulations designed to save fish stocks are dependent on knowing how much of a species is present.

Read the full story at the New Bedford Standard-Times

NOAA, Coast Guard: More regs needed in wake of Rafael ’s fraud

December 4, 2019 — Representatives from NOAA and the US Coast Guard are using Carlos Rafael’s case as evidence that more regulations and oversight are necessary in the groundfishing industry.

NOAA Special Agent Troy Audyatis explained to a crowd gathered at the New England Fishery Management Council Meeting on Tuesday how NOAA worked with other agencies to catch the so-called Codfather and said, “We need to prevent something like this from ever repeating itself down the road.”

Rafael was sentenced to 46-months in federal prison for falsifying fishing quota, cash smuggling, and tax evasion in a criminal case, and was ordered to pay a $3 million penalty to address the federal government’s civil claims against him which included counts of misreporting and underreporting his groundfish catch.

Audyatis said if there wasn’t an observer, who collects data from U.S. commercial fishing and processing vessels for NOAA, on Rafael’s vessels or a dock-side officer “thousands upon thousands of fish would simply disappear” without being reported.

One of the reasons Audyatis gave for Rafael being able to misreport and underreport was the vertical integration of Rafael’s business.

Read the full story at the New Bedford Standard-Times