Saving Seafood

New Bedford seafood manager pleads guilty to tax charges

November 29, 2017 — BOSTON — A New Bedford seafood manager pleaded guilty in federal court in Boston on Tuesday to failing to report earnings on his tax returns.

Orlando Cardoso, 44, pleaded guilty to two counts of filing a false income tax return. Sentencing is scheduled for March 8, 2018. The indictment said that Cardoso was a manager of the scallop division of a New Bedford seafood processor, according to a news release from the U.S. Attorney’s Office.

In 2012 and 2013, Cardoso said his only income was from his employer. However, the Department of Justice said Cardoso had received more $75,000 in cash and checks from his employer’s supplier and failed to report the income on his tax returns.

The charge of filing a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors, authorities said.

Read the full story at the New Bedford Standard Times 

 

Carlos Rafael faces $109K fine, loss of 13 vessels

April 4, 2017 — New Bedford fishing mogul Carlos Rafael may have to surrender up to 13 of his groundfishing vessels and must pay almost $109,000 in restitution to the Internal Revenue Service as part of his plea agreement with federal prosecutors.

Rafael pleaded guilty last Thursday to falsifying fish quotas, conspiracy and tax evasion in U.S. District Court in Boston and is scheduled to be sentenced there on June 27 by Judge William G. Young.

The 65-year-old Rafael could face up to 76 months in prison on the three charges — far less than the up to 20 years he would have faced under the original 27-count indictment. Federal prosecutors, however, have recommended a prison sentence of 46 months and a significant period of supervised release.

Young is not bound by the specifics of the plea agreement, nor must he follow federal prosecutors’ sentencing recommendations.

“Based on my experience, (Rafael) is probably looking at least three to four years in prison and a substantial fine,” New Bedford Mayor Jon Mitchell, a former federal prosecutor, told the Undercurrent News fishing website. “But I think the bigger question is what happens to his groundfish permits. They may be subject to forfeiture, but his forfeiture obligation can be subject in a number of ways.”

Read the full story at the Gloucester Times

New Bedford mayor: What’s next after Rafael’s guilty plea

April 3, 2017 — All eyes are on Carlos Rafael’s sizeable load of assets—32 fishing vessels, 44 permits and a business named Carlos Seafood—now that he’s facing up to 20 years of jail time when he receives his sentence in June.

His guilty plea agreement with the US government agrees to forfeiture of all 13 of his groundfish vessels, but his sizeable fleet of scallop vessels aren’t mentioned. A spokesperson at the Department of Justice (DOJ) declined to speculate on whether the federal government could seize these after his sentencing in June if Rafael couldn’t come up with the money to pay his fines, set at up to $7 million in the plea agreement.

New Bedford mayor Jon Mitchell, a former federal prosecutor, said there is flexibility within the terms of the plea agreement.

“Based on my experience, he’s probably looking at least three to four years in prison and a substantial fine,” Mitchell told Undercurrent News. 

Rafael is facing multiple counts of federal crimes, some of which include a maximum sentence of five years and one of which provides a maximum sentence of 20 years.

“But I think the bigger question is what happens to his groundfish permits,” Mitchell said. “They may be subject to forfeiture, but his forfeiture obligation can be subject in a number of ways.”

Typically, in other cases where the government seizes assets, those assets are sold by the government in an open auction; however, this case is unusual, making the asset sale process possibly run differently, a spokesperson for the DOJ told Undercurrent.

Such a sale at a government auction raises big concerns for Mitchell. 

“There’s a chance they may be bought up by government interests outside the port, and that scenario may have a direct impact on the industry here,” he said.

Mitchell plans to argue for Carlos’s permits to remain in the port of New Bedford, the largest seafood port in the United States.

The DOJ and the National Oceanic and Atmospheric Administration (NOAA) could substitute cash for the forfeiture of vessels by allowing Carlos to pay an equivalent amount of cash, attained through a sale of the vessel to a New Bedford buyer, instead of simply handing the vessels over to them to sell, Mitchell said. 

Read the full story at Undercurrent News

New Owner May Reopen Fish Company After Food Safety Upgrade

February 17, 2016 — The federal court documents that Friday led to the mandatory closure of the Sullivan Harbor Farm smokehouse in Hancock, ME, also included  a lengthy recipe for re-opening the facility known for annually smoking as much as 75,000 pounds of Atlantic salmon.

Friday’s consent decree of permanent injunction, ordered by a federal judge, shut down Mill Stream Corp., doing business as Sullivan Harbor Farm on U.S. 1 in Maine. The injunction also prohibits the company’s former president and owner, Ira J. Frantzman, from working in the food industry. The injunction is in response to a Feb. 10 complaint by the U.S. Department of Justice at the behest of the U.S. Food and Drug Administration (FDA).

But ahead of the Feb. 12 injunction, in late January, Sullivan Harbor Farm reportedly was sold.

“The new owner has already made most of the necessary improvements while working with a food safety expert in conjunction with FDA to improve safety, sanitation and training practices in anticipation of reopening soon, bringing award winning products back into the marketplace,” stated a Sullivan Harbor Farm post Monday on the company’s Facebook page.

It did not disclose the name of the new owner, but said whoever it is plans to “move forward with new concepts, while continuing the 25 year tradition of producing safe, tasty artisanal smoked seafood.”

Read the full story at Food Safety News

Feds Dive Into Giant Tuna Price-Fixing Case

January 22, 2016 — SAN DIEGO (CN) — An ongoing antitrust case against seafood giants got even bigger as the federal government has intervened in litigation against the likes of Bumble Bee, Tri-Union Seafoods, StarKist, and others.

U.S. District Court Judge Janis Sammartino held a status conference Wednesday in a room filled to the brim with more than 50 lawyers from around the nation, hoping to move the case forward.

The U.S. Department of Justice Antitrust Division filed an unopposed motion to intervene in the lengthy litigation on Jan. 13. The feds are seeking a limited stay of discovery to aid in an ongoing federal grand jury investigation in the Northern District of California, into whether the biggest canned tuna producers violated the Sherman Act by conspiring to fix prices.

  The original class action complaint was filed in San Diego by Olean Wholesale Grocery Cooperative on Aug. 3, 2015. Dozens of lawsuits over price-fixing by the three biggest packed-seafood companies have since trickled into San Diego Federal Court after being transferred from other courts across the nation.

     The three companies control 73 percent of the U.S. market: Bumble Bee, 29 percent; StarKist, 25.3 percent; and Tri-Union, 18.4 percent, according to the complaint.

     Both Bumble Bee and Tri-Union Seafoods, which makes Chicken of the Sea brand shelf-stable tuna, are headquartered in San Diego – once the tuna-fishing capital of the world.

Read the full story at Courthouse News Service