Saving Seafood

Bristol, Mass. sheriff’s captain charged with smuggling in Carlos Rafael case

August 31, 2017 — BOSTON — A captain with the Bristol County Sheriff’s Office was arrested and charged late Wednesday in connection with helping Carlos Rafael, the owner of one of the largest commercial fishing businesses in the U.S., smuggle the profits of his illegal overfishing scheme to Portugal, the U.S. Attorney’s Office said.

James Melo, 45, of North Dartmouth, was charged with one count each of bulk cash smuggling, structuring and conspiracy. He was released on a $10,000 unsecured bond following his appearance in federal court in Boston on Wednesday afternoon, authorities said.

In May 2015, federal agents began an undercover operation targeting Carlos Rafael, the owner of one of the largest commercial fishing businesses in the U.S. In the fall of 2015, undercover agents, posing as potential buyers of Rafael’s business, met with Rafael to negotiate buying his fishing business. Rafael told the agents that he hid the cash proceeds of his illegal fishing sales, in part, by smuggling the money to Portugal. Rafael said that he sometimes took the money himself, but also used the services of others, and referred to knowing several members of the Bristol County Sheriff’s Office, including Melo, whom he described as, “the captain at the prison,” the U.S. Attorney’s Office said in a statement sent to news media.

Read the full story at the New Bedford Standard-Times

Carlos Rafael’s wife petitions for right to claim vessels

August 30, 2017 — NEW BEDFORD, Mass. — Two parties, including Carlos Rafael’s wife, filed petitions in district court claiming they possess rights to the property listed in the preliminary order of forfeiture, according to court documents submitted Monday.

Conceicao Rafael, who is married to Carlos Rafael, laid out in 45 pages her “rights to certain property” listed in the preliminary order of forfeiture.

In seven more pages, Joao Camara laid out his argument to the rights to Southern Crusader II, one of the 13 vessels listed in the preliminary order of forfeiture. Camara claims ownership through a company named R and C Fishing Corp.

Carlos Rafael pleaded guilty to falsifying fishing quotas, tax evasion and smuggling cash in March. As part of the plea agreement, 13 vessels could be forfeited.

Conceicao’s petition includes statements that she was and remains a 50 percent owner with her husband in 11 “relevant companies.” As part owner in the companies, she listed 11 vessels where she possesses “equitable interest.”

Read the full story at the New Bedford Standard-Times

MASSACHUSETTS: State Rep. Straus request reveals NOAA has yet to penalize Rafael

August 25, 2017 — NEW BEDFORD, Mass. — Through a public records request, Rep. William Straus said he discovered that NOAA hasn’t disciplined Carlos Rafael since the indictment has been released.

That included an incident on Aug. 5, 2016, which occurred after the indictment, where public records also show that the Coast Guard cited the Lady Patricia, a Rafael vessel listed in the indictment, for “fishing without proper VMS designation.”

NOAA defines its Vessel Monitoring System (VMS) as a system supporting law enforcement initiatives and preventing violations of laws and regulations. It is used as evidence in the prosecution of environmental laws and regulations including regional fishing quotas, the Endangered Species Act, and the Marine Mammal Protection Act.

Rafael pleaded guilty in March to falsely labeling fish quotas, tax evasion and smuggling money.

NOAA said it doesn’t comment on ongoing cases, but it said it isn’t uncommon for the organization to issues penalties after criminal proceedings.

Straus, D-Mattapoisett, had requested from NOAA all charging documents involving Rafael.

“There was a pattern of behavior which concerned me about its impact on what we want to have in terms of managing the fishery,” Straus said.

Read the full story at the New Bedford Standard-Times

Mass delegation supports putting Carlos Rafael’s forfeiture toward electronic monitoring

August 22, 2017 — NEW BEDFORD, Mass. — John Bullard wants to arm fishing vessels with a smartphone — figuratively speaking.

“Nobody has rotary phones anymore, we just assume smartphones are the way we communicate and all the benefits of smartphones we’ve come to expect as normal,” Bullard said. ”(Electronic monitoring) is what we’re going to transition to, but it’s going to take time.”

NOAA’s Northeast Regional director said he believes current methods can lead to inaccurate science. Last week, NOAA conducted a fishing stock assessment meeting in New Bedford where similar concerns of bad science emerged. The root of the concern was data from false reports.

Electronic monitoring, specifically cameras on vessels, would provide accurate information.

“This is a major, in my opinion, improvement,” Bullard said. “I think it’s a major benefit to the industry.”

A letter signed by 12 members of the Massachusetts House of Representatives sparked discussion of electronic monitoring. The group, which included Patricia Haddad representing Bristol’s 5th District, sent the letter to Charlie Baker asking the governor to use any capital forfeiture associated with Carlos Rafael’s sentencing to pay for electronic monitoring.

Rafael pleaded guilty in March to false labeling fishing quotas. His sentencing hearing is Sept. 25 and 26 in Boston.

Read the full story at the New Bedford Standard-Times

New Bedford Standard-Times: Court, NOAA should put Rafael assets to greatest good use

August 21, 2017 — Carlos Rafael’s challenge of the forfeiture of 13 permitted groundfish vessels stirs the concerns of hundreds — maybe thousands — of fishermen and fishing support workers, municipal officials from Rhode Island to Maine, and state and federal officials left with all the more uncertainty of the impact of his punishment once it’s finally handed down.

His guilty plea in March, to three decades of cheating in the groundfish fishery, hasn’t stopped his boats from fishing out of New Bedford, where they bring in 75 percent of the groundfish landed each year, representing 10 percent of all the landings in the nation’s richest port.

New Bedford’s mayor has argued convincingly that removing all 13 vessels from the Port of New Bedford would have an immediate, significant impact on the livelihoods of scores of workers and their families, and the court’s granting of postponements while a full exit from fishing (including nearly two dozen scallopers) is negotiated by Mr. Rafael and the government suggests official harmony on that point.

Read the full editorial at the New Bedford Standard-Times

Carlos Rafael files motion of opposition to forfeiture

August 21, 2017 — NEW BEDFORD, Mass. — Carlos Rafael filed a court motion Monday opposing the government’s motion for preliminary order of forfeiture.

The New Bedford fishing heavyweight made the request in light of “ongoing discussions” regarding the vessels and permits associated with the guilty plea he made four and half months ago.

Rafael pleaded guilty to falsifying labels and fish identification, cash smuggling and tax evasion on March 30. In the plea agreement, Rafael admitted the vessels listed in the indictment were subject to forfeiture. The agreement reserved Rafael the right to challenge the forfeitures.

Rafael took advantage of that right, citing the excessive fines clause of the Eighth Amendment and saying an order of forfeiture may not be required. The motion requested any hearing associated with forfeitures be held as needed during sentencing on Sept. 25 and 26.

“The parties have been discussing possible resolutions of the forfeiture issues that may obviate the need for briefing and hearings on those issues,” Rafael’s motion stated.

Read the full story at the New Bedford Standard-Times

Despite guilty plea, Carlos Rafael continues to fish

August 14, 2017 — Gloucester fisherman and vessel owner Vito Giacalone is the chairman of governmental affairs, and sits on the board of directors of the Northeast Seafood Coalition, the umbrella organization that oversees a dozen sectors, including Rafael’s. Up until 2016, Rafael was also a coalition board member.

Giacalone believed that Rafael was simply too big to be allowed to fail, that his sector worked with NOAA to enact changes — including bringing in new board members and a new enforcement committee — that allowed them to stay in business.

Rafael’s vessels control considerable groundfish quota, up to 75 percent of what New Bedford holds, according to New Bedford Mayor Jon Mitchell, and Rafael has said he has 280 employees.

“You don’t have to be too imaginative to see that that is an enormous collateral impact as soon as that operation is stopped in its tracks,” Giacalone said, estimating that as many as 80 fishermen would be immediately out of work.

“I wish Carlos Rafael had thought about that before he did what did,” said Hank Soule, manager of the Sustainable Harvest Sector in South Berwick, Maine.  “The bottom line is New Bedford is the richest port in the U.S. The loss of his groundfish boats won’t devastate the port.”

NOAA is reportedly working with Rafael’s legal team on an agreement that would have him selling off his vessels and permits and leaving fishing forever, including scallop and lobster vessels not involved in the fish smuggling scheme.

At least 13 vessels are scheduled to be forfeited to the government as part of the plea deal and Giacalone thinks NOAA may be trying to maintain the value of the assets by keeping them fishing.

“I think it would be clumsy of the sector to cause collateral damage that could be excessive to innocent third parties,” Giacalone said.

Read the full story at the Cape Cod Times

What’s next for Carlos Rafael?

July 31, 2017 — The “Codfather” quashed any hopes for high courtroom drama when he pleaded guilty in March to falsifying fish quotas, false labeling of fish species, conspiracy and tax evasion, 28 counts in all.

The real action is behind the scenes, as federal and defense attorneys wrestle over the fate of New Bedford fishing mogul Carlos Rafael’s fishing empire, said to be one of the largest groundfish fleets in the nation.

It’s something Cape fishermen, and fishermen all over New England, are debating and watching closely.

“I’ve said before, there is no place in fishing for Mr. Rafael. If that’s part of the global solution (the larger deal being worked out between NOAA and Rafael’s attorneys) every fisherman I’ve spoken to up and down the coast feels that’s a good outcome,” said John Pappalardo, chief executive officer of the Cape Cod Commercial Fishermen’s Alliance and a member and former chairman of the New England Fishery Management Council. Many fishermen want the courts and the National Oceanic and Atmospheric Administration to make an example of Rafael and send a message that illegal fishing practices won’t be tolerated.

They are also interested in what happens to the money collected in fines and forfeitures and the fate of the many fishery permits and quota controlled by Rafael.

Read the full story at the Cape Cod Times

Carlos Rafael sentencing delayed

July 28, 2017 — The New Bedford fishing mogul known as “The Codfather” has been granted a new two-month delay prior to his sentencing on federal charges of conspiracy, falsifying fish quotas, and tax evasion.

Carlos Rafael, 65, was slated to face sentencing Friday, and could face up to 76 months in prison on the three charges through plea agreement reached with the U.S. attorney’s office March 30.

Federal prosecutors have recommended a prison term of 46 months and an extended time after that of supervised release, but U.S. District Court Judge William G. Young is not bound to abide by that recommendation. All of those terms are far less than the 20 years he could have faced under an original 27-count indictment.

Young, however, granted a motion on July 11 that had been filed by Rafael’s attorney, William H. Kettlewell, asking for more time to resolve what Kettlewell called “a critical component of the overall resolution of this case.” Young and the U.S. attorney’s office agreed to set a new sentencing date for Sept. 25 at 2 p.m., according to spokeswoman Liz McCarthy.

Read the full story at the Gloucester Times

Sentencing Approaches for New England’s Carlos Rafael

July 23, 2017 — One of the biggest fishing magnates in the country could be sentenced to prison this coming week, and the forfeiture of his boats could be a big hit for the Massachusetts port where he amassed a small empire.

Between his scalloping and groundfishing boats, Carlos Rafael – nicknamed “the Codfather” — came to be the largest single owner of fishing vessels in New England, and possibly in the country.

But in 2015, undercover IRS agents posed as Russian criminals and convinced him they wanted to buy his entire fleet. Rafael unpacked an elaborate criminal enterprise to the agents — one he said he’d been carrying out for three decades.

Court records show that Rafael valued his business at $175 million. He told the undercover agents the value came from the way he cheated the government quota system. Rafael’s men would haul in a more valuable fish — like cod — and report it as a cheaper species with a much greater quota. Now Rafael is facing prison time for counts including tax evasion and bulk cash smuggling — all of which he admitted to.

But people in New Bedford want to know: What will become of the 13 fishing boats — and all the permits attached to them — that were tied to Rafael’s crimes? Will they be auctioned off on the open market, held by an entity such as the city of New Bedford or perhaps removed from circulation?

Read the full story at NPR