Saving Seafood

In plea deal, former National Fish president likely to pay $1m in restitution

December 29, 2017 — Former National Fish and Seafood president Jack Ventola will likely pay $1 million in restitution to the Internal Revenue Service (IRS) and face jail time after defrauding his former company, which is majority owned by Hong Kong-based conglomerate Pacific Andes International Holdings (PAIH).

Ventola was arrested on Nov. 23, 2015, in connection with failing to pay taxes on more than $2 million in income he earned from 2006 to 2009, according to the US attorney’s office for the district of Massachusetts. He was indicted on three counts of filing false tax returns and one count of conspiracy to defraud the IRS.

Ventola and two others, former National Fish senior sales executive Richard Pandolfo, and Michael Bruno, an accountant who didn’t work for the company but served on its board, face charges that include tax fraud in connection with an alleged scheme that reportedly charged the company for labor services never provided.

Pandolfo and Bruno pleaded guilty but have yet to be sentenced. Ventola had initially pleaded not guilty but later signed a plea agreement with prosecutors that was filed on Dec. 19. As part of that agreement, Ventola admitted to seven counts of making and subscribing a false tax return while prosecutors dropped three more serious charges: conspiracy, wire fraud and mail fraud.

For the charges he admitted to Ventola could face a maximum of three years in prison, three years supervised release, a $250,000 fine and restitution.

However, prosecutors will instead recommend a lesser prison sentence, a to be determined fine and $1.073m in restitution. Judge Douglas Woodlock is slated to sentence Ventola on March 27.

Read the full story at Undercurrent News

 

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

MASSACHUSETTS: Authorities’ visit to fish house remains a mystery

June 23, 2017 — Business appeared to be carrying on as usual Friday at Lou-Joe’s Fresh Seafood, a day after agents from the Internal Revenue Service and two other government agencies visited the small fish processing plant.

Workers were cutting fish on Friday inside the 3,800-square-foot plant at 24 Washburn St., New Bedford, near where Interstate 195 crosses the Acushnet River. Fish trucks were coming and going from the loading docks.

An employee in the office said he was not the owner and declined to comment on the situation.

On Thursday, about a dozen officials from the IRS, Massachusetts Environmental Police, and National Oceanic and Atmospheric Administration visited the plant. An IRS spokeswoman told The Standard-Times the IRS employees were on official business, but she would not say anything further.

A corporate document filed with Massachusetts Secretary of State William Galvin’s office shows two people listed as officers of a now-dissolved corporation by the name Lou-Joe’s Fresh Seafood, Inc.: Luis Martins as president and treasurer, and Mary Martins as secretary. Both are listed at the same address: 17 Bertrand’s Way, Acushnet.

The business summary on the secretary of state’s website shows an involuntary dissolution of the corporation in 1998.

Laurie Flynn, director of corporations for Galvin, said the corporation was dissolved for failing to file the required annual reports after 1990. But operating without corporation status is not illegal as long as the business does not use “Inc.” in the name, she said. Lou-Joe’s could be operating as a sole proprietorship or partnership, for example, she said.

Neither Luis Martins nor Mary Martins could be reached at the business or at the house on Bertrand’s Way in Acushnet.

Read the full story at the New Bedford Standard-Times

MASSACHUSETTS: New Bedford Worries About What Happens To ‘The Codfather’s’ Fishing Permits

April 11, 2017 — Down on the docks of the Whaling City, everyone knows him as “Carlos.”

“I’ve been working for Carlos for 12 years now,” says Richard Mauzerolle of Weston. “Sometimes he should watch out who he’s talking to,” he adds with a laugh, referencing the IRS sting that landed Carlos Rafael guilty on 28 counts in late March. “But he’s a good guy.”

The fall of New Bedford fishing boss Carlos Rafael could be a big blow for the city’s port. And if his fishing permits are forfeited and end up in another state, it could hurt Massachusetts as a whole.

What happens to Rafael’s boats — and the permits attached to them — will be decided by a federal judge. And people in New Bedford want them to stay in the city.

‘He’s One Of My Main Livelihoods’

Mauzerolle is in the spray foam business — he insulates holds on fishing boats owned by Rafael. He’s one of hundreds of people who work with the man known as “the Codfather,” who gives Mauzerolle about a third of his business.

“He’s one of my main livelihoods right down in the area, so it’d be a shame to have him lose anything,” says Mauzerolle, standing in front of his box truck with a massive Donald Trump sign stuck to the side. Rafael, he says, has “brought this fishing industry back to where it’s supposed to be down here.”

In 2004, Rafael spoke to an archivist at the Working Waterfront Festival in New Bedford about how he amassed so many boats, highlighting the importance of diversifying between scallops and groundfish.

Read the full story and listen to the radio report at WBUR

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