Saving Seafood

Carlos Rafael’s boats set to sail again with new owners

February 27, 2020 — Several boats once owned by disgraced fishing mogul Carlos Rafael, infamous in the region for being nicknamed the “Codfather,” will once again set sail, thanks to new management.

Blue Harvest Fisheries has bought several of the boats that became disused due to Rafael’s conviction for ignoring fishing quotas and limits, as well as smuggling profits overseas. Rafael was sentenced to four years in prison and can never run a fishing operation ever again.

The company says its acquisition will help keep locals employed on the New Bedford waterfront and maintain the tradition that made it the Whaling City for generations of fishermen.

“Our goal here is to create jobs and opportunities for New England fisheries,” Blue Harvest CEO Keith Decker said. “Everyone, in general, is very excited about what this means to the greater New Bedford area.”

Read the full story at WPRI

Blue Harvest Launching First Line of Branded Retail Products at Boston Seafood Show

February 25, 2020 — So far 2020 has been a big year for Blue Harvest Fisheries. Last week the New Bedford-based company completed the acquisition of 12 vessels and 27 fishing permits previously owned by Carlos Rafael. This week Blue Harvest Fisheries announced the launch of their first branded retail product line.

The new product line, which will be showcased at Seafood Expo North America in Boston next month, includes locally harvested and processed MSC-certified Atlantic sea scallops, Atlantic pollock (saithe), North Atlantic ocean perch (Acadian redfish) and haddock. The products in the retail line are quick frozen for freshness and sold in a convenient 16 oz. reclosable bag.

Read the full story at Seafood News

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 finalizes acquisition of portion of Carlos Rafael fleet

February 20, 2020 — Last year in New England, U.S.A., 90 percent of the haddock quota and 92 percent of the pollock quota was left in the water.

Blue Harvest, based in New Bedford, Massachusetts, is aiming to change those numbers and the company’s recent acquisition of 12 groundfish vessels and 27 fishing permits is a part of its efforts to begin utilizing the resource. The vessels, and permits, were formerly part of the fleet of Carlos Rafael – a.k.a. “The Codfather” – who pleaded guilty in 2017 to falsifying fish quotas, tax evasion, and conspiracy and then subsequently settled a civil case with NOAA that forced him to permanently stop all commercial fishing by 31 March, 2020.

Read the full story at Seafood Source

Rafael Associate Raises a Stink Over Miranda Lapse

February 7, 2020 — A First Circuit judge voiced concern Thursday with an interrogation of a former sheriff’s department captain convicted of aiding the overseas profit-smuggling activities of New England’s notorious fishing magnate “the Codfather.”

As noted by Jamie Melo’s attorney Gary Pelletier, the interrogation occurred for four hours in Melo’s home without being a Miranda warning.

Though Assistant U.S. Attorney Mark Quinlivan argued that Miranda warnings weren’t required because Melo wasn’t in custody and was free to leave at any time, U.S. Circuit Judge David Barron sounded skeptical.

“I mean, the officers obviously weren’t there just to chat,” he deadpanned.

Melo was accused of distributing envelopes containing large amounts of cash to associates in the men’s room of Boston’s Logan Airport before the group went through security. The group, including the Codfather, was traveling to Portugal for a charitable fundraiser called Thanksgiving in the Azores that was sponsored by the sheriff’s department. Once in the Azores, the Codfather allegedly received the envelopes back and then deposited $76,000 in cash in a bank account.

Melo claims he was innocently doing a favor for a prominent local businessman involved in the charity project and had no idea know what was in the envelopes.

Read the full story at the Courthouse News Service

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

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