Saving Seafood

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

‘We caught him using his own words’ NOAA: Rafael’s own fishery complaints opened door to his downfall

December 4, 2019 — It turns out that it was Carlos Rafael himself who opened the door to the civil and criminal investigations that resulted in his exile from the commercial fishing industry and his current residency at the FMC Devens federal prison.

In January 2015, angered by cuts to his portion of federal groundfish disaster relief, Rafael publicly railed against the process and said he planned to sell his more than 40 vessels and the approximately 60 federal fishing permits attached to them.

And with that, according to a NOAA Office of Law Enforcement presentation Tuesday to the New England Fishery Management Council on the criminal case against Rafael, five federal law enforcement agencies saw their opening.

They began widespread undercover investigations that ultimately led to Rafael’s indictment and conviction in November 2017 for fisheries reporting violations, tax evasion and bulk smuggling.

“We took this as an opportunity to reach out to Carlos Rafael as interested buyers,” said OLE Special Agent Troy Audyatis. “We caught him using his own words.”

Read the full story at the Gloucester Daily Times

NEFMC – Important Meeting Update – Time Changes for Tuesday, December 3 Agenda iIems

December 2, 2019 — The following was released by the New England Fishery Management Council:

This is an important update from the New England Fishery Management Council about its December 3-5, 2019 meeting in Newport, RI.

WHAT’S GOING ON:  Due to the winter storm that is impacting the region, the Council will begin its meeting at 10 a.m. on Tuesday, December 3 instead of 9 a.m. as originally scheduled in order to allow for additional travel time.
 
HAS THE AGENDA CHANGED:  The Council is not eliminating any agenda items.  However, timeslots have been adjusted to account for the delayed start, and the order of a few items has shifted.
  • Most notably, the open period for public comment and the update titled “Carlos Rafael Case/Misreporting Issues” both will take place following the lunch break under the revised agenda.
  • The item titled “Draft National Standard 1 Technical Guidance” now will be discussed prior to the lunch break.
WHERE CAN I FIND OUT MORE:  Visit the meeting webpage at NEFMC December 3-5, 2019 Newport, RI.
QUESTIONS:  Contact Janice Plante at (607) 592-4817, jplante@nefmc.org.

Coast Guard: Catch misreported on 350 fishing trips

December 2, 2019 — The Northeast multispecies groundfishery may have been victimized by several misreporting schemes through a five-year period and “potentially up to 2.5 million pounds of regulated species were misreported by vessels from multiple sectors” in the fishery, according to a Coast Guard investigation of misreporting.

The report chronicling the Coast Guard investigation from 2011 to 2015 will be presented to the New England Fishery Management Council on Tuesday during the first of its three days of meetings in Newport, Rhode Island.

The Coast Guard presentation is one of two scheduled agenda items dealing with catch misreporting that will be before the council on Tuesday.

The same day, NOAA Fisheries’ Office of Law Enforcement is scheduled to make a presentation to the council specifically on misreporting uncovered during the criminal case brought against now-incarcerated New Bedford fishing mogul Carlos Rafael.

In its 21-page report, the Coast Guard said the analysis by its Boston-based First District enforcement staff identified more than 350 vessel trips during the period of 2011 to 2015 in the Northeast multispecies groundfishery “where there appears to be evidence of misreporting.”

Read the full story at the Gloucester Daily Times

Carlos Rafael Inks $25 Million Deal with Blue Harvest Fisheries

November 29, 2019 — The highly-anticipated forced sell-off of “Codfather” Carlos Rafael’s fishing fleet appears to be near completion, only months after the convicted criminal unloaded his scallop boats.

Undercurrent News reports that Blue Harvest Fisheries has inked a $25 million deal to buy at least 35 vessels and skiffs from Rafael along with their permits and fishing quotas. Blue Harvest maintains fleets in Fairhaven and in Newport News, Virginia. It is backed by Bregal Partners, a New York City-based private equity firm.

The pending deal with Blue Harvest – which still must survive a “right of first refusal” where other harvesters could step forward – comes as Rafael remains behind bars.

Rafael was arrested in 2016 following a federal sting, and was convicted on 28 criminal counts in 2017. Rafael admitted to raking in illegal profits and gaming the system by mislabeling 700,000 pounds of harvested fish over four years. He also illegally avoided paying taxes. Rafael was sentenced to 46 months in federal prison. To settle a separate civil suit with the National Oceanic and Atmospheric Administration, he was forced to sell his fishing fleet, pay $3 million in penalties, and never engage in the world of commercial fishing again.

Read the full story at WBSM