September 25, 2017 — BOSTON — Judge William Young sentenced Carlos Rafael to a 46-month prison term, but he held off on a decision regarding the forfeiture of any permits or vessels.
Rafael also received three years supervised release.
His attorney William Kettlewell requested the sentence be served at Fort Devens. Rafael will have credit for the time he spent in jail earlier in his life, which equated to about nine days. He’ll also pay a $200,000 fine.
September 25, 2017 — Could old friends of Carlos Rafael’s wind up with his massive New England fishing fleet?
Speculation is building that the Buyers and Sellers Exchange (BASE), an electronic seafood auction firm in New Bedford, Massachusetts, could be the company mentioned in court documents as having signed a memorandum of agreement to buy the 30-something vessels, an unknown number of skiffs, and some 50 state and federal permits to catch scallops, cod, haddock and many other fish found in the Gulf of Maine.
Richard and Raymond Canastra, BASE’s co-owners, were not in their offices on Friday, a company employee told Undercurrent News. But many see it as a likely match.
Raymond Canastra is reported to be a long-time friend of Rafael’s. The two mens’ daughters co-own a seafood brokerage firm in New Bedford.
The Canastra brothers don’t have fishing boats, but if they were able to acquire the Rafael operation, “it would not be a surprise to anyone”, Jim Kendall, a longtime member of the area fishing community and the executive director of New Bedford Seafood Consulting, told Undercurrent.
The Canastras know the fishing industry well, and probably wouldn’t have too much trouble making Rafael’s business work with theirs, he said. There is little money to be made in groundfish, but Rafael’s scallops permits could be quite valuable. Also, it would satisfy the goal of keeping nearly 300 jobs in the area.
September 25, 2017 — Tomorrow at 10:00 AM, two members of Saving Seafood’s National Coalition for Fishing Communities will testify before a House Natural Resources subcommittee on four bills affecting fisheries and fisheries management. Jon Mitchell, the Mayor of New Bedford, Massachusetts and head of the NCFC member New Bedford Harbor Development Commission, and Mike Merrifield, of the Southeastern Fisheries Association, will join other witnesses at tomorrow’s hearing.
The following information on the hearing was released by the House Natural Resources Committee Subcommittee on Water, Power, and Oceans:
On Tuesday, September 26, 2017, at 10:00 a.m., in room 1334 Longworth House Office Building, the Subcommittee on Water, Power and Oceans will hold a legislative hearing on the following bills:
Witnesses:
The Honorable Jonathan Mitchell
Mayor
City of New Bedford
New Bedford, Massachusetts
Mr. Chris Macaluso
Director, Center for Marine Fisheries
Theodore Roosevelt Conservation Partnership
Washington, DC
Ms. Susan Boggs
Co-Owner
Reel Surprise Charter Fishing
Orange Beach, Alabama
The Honorable Wilbur Ross (Invited)
Secretary
U.S. Department of Commerce
Washington, DC
Mr. Ben Martens
Executive Director
Maine Coast Fisherman’s Association
Brunswick, Maine
Mr. Mike Merrifield
Southeastern Fisheries Association
Tallahassee, Florida
Mr. Chris Blankenship
Commissioner
Alabama Department of Conservation and Natural Resources
Montgomery, Alabama
More information on the hearing, including a link to a live stream of the proceedings, can be found at the House Natural Resources Committee website.
September 22, 2017 — NEW BEDFORD, Mass. — If every part of a fish were used for high-value products, the New Bedford fishing industry could make more money from fewer fish.
That kind of innovation is what’s behind a new effort by New Bedford Harbor Development Commission to serve as a matchmaker for technology companies and the fishing industry. Following a model developed in Iceland, the commission has formed the New Bedford Ocean Cluster, which will foster entrepreneurship in ocean products.
Mayor Jon Mitchell, who chairs the commission, signed a memorandum of understanding Thursday with Thor Sigfusson, founder and chairman of the Iceland Ocean Cluster, to work together. The agreement officially makes New Bedford part of a loosely organized global network of ocean clusters. No money will change hands; it’s about an exchange of ideas, Sigfusson said.
New Bedford’s is the third such effort worldwide, following Iceland and Maine. Others are forming in Alaska and Seattle.
Mitchell said New Bedford wants to be associated with all things fishing — not just fish and fish processing, but pharmaceuticals, cosmetics, and other products.
September 22, 2017 — NEW BEDFORD, Mass. — Carlos Rafael and a potential purchaser have entered into a Memorandum of Agreement regarding a sale of his vessels and accompanying permits that would remove the fishing mogul from the industry, according to court documents filed Wednesday.
Rafael’s sentencing memorandum reiterated the potential deal that was first publicly revealed in July. It also stated that NOAA and the U.S. Attorney’s Office haven’t taken a final position on the proposed sale and didn’t identify the buyer.
The Government’s Sentencing Memorandum, also filed on Wednesday, stated that the sale of Rafael’s entire fleet could be worth $70 million to $80 million to a local buyer.
On Monday, Rafael’s attorney’s filed an Opposition of Forfeiture, which stated a deal for 13 groundfish permits would be valued at $16.3 million. It made no reference, though, to the value of the entire fleet, but still suggested a deal would remove Rafael from the industry.
There are two prominent business in New Bedford that possess the means to inherit the permits: Whaling City Seafood Display Auction and Eastern Fisheries. Neither returned requests for comment.
It all stems from Rafael pleading guilty to falsifying fishing quota and smuggling cash in March. As part of the agreement, 13 vessels and the permits associated are subject of forfeiture.
Stakeholders weigh in on fate of Codfather’s permits, penalties
September 22, 2017 — The specter of Carlos Rafael, along with his legal baggage and trove of groundfish permits, continues to hang over the New England commercial fishing industry like a shroud that most stakeholders wish would just go away.
The sentencing of Rafael, the New Bedford fishing magnate known as “The Codfather” for his expansive vessel and groundfish permit holdings, is set to begin Monday in U.S. District Court in Boston on charges of conspiracy, lying to federal fishing regulators about the nature and size of his groundfish landings and bulk smuggling.
“We can’t wait for this to be resolved,” said Maggie Raymond of the Associated Fisheries of Maine.
The sentencing of the 65-year-old Rafael, who pleaded guilty in March as part of a plea deal with federal prosecutors, won’t end the contretemps. Not by a long shot.
While everyone seems to agree that Rafael should feel the full wrath of the law for his admitted misdeeds — he faces up to 76 months in prison, restitution of $109,000 to the IRS and the seizure of at least the 13 groundfishing vessels used in his scam — full resolution only will come when NOAA Fisheries decides the final fate of his 42 groundfishing permits.
There is no shortage of opinions of what NOAA should do.
September 22, 2017 — The following was released by the Atlantic States Marine Fisheries Commission:
The Atlantic Herring Area 1A (inshore Gulf of Maine) fishery regulations include seasonal spawning closures for portions of state and federal waters in Eastern Maine, Western Maine and Massachusetts/New Hampshire. The Atlantic States Marine Fisheries Commission’s Atlantic Herring Section approved a forecasting method that relies upon at least three samples, each containing at least 25 female herring in gonadal states III-V, to trigger a spawning closure.
Sampling in the Western Maine spawning area began on July 31, 2017; four samples of female herring were collected to evaluate spawning condition. Based on the analysis of the samples, the Western Maine spawning area will be closed starting at 12:00 a.m. on September 26, 2017 extending through 11:59 p.m. on October 24, 2017. Vessels in the directed Atlantic herring fishery cannot take, land or possess Atlantic herring caught within the Western Maine spawning area during this time and must have all fishing gear stowed when transiting through the area. An incidental bycatch allowance of up to 2,000 pounds of Atlantic herring per trip/ calendar day applies to vessels in non-directed fisheries that are fishing within the Western Maine spawning area.
Western Maine spawning area includes all waters bounded by the following coordinates:
43° 30’ N Maine coast
43° 30’ N 68° 54.5’ W
43° 48’ N 68° 20’ W
North to Maine coast at 68° 20’ W
For more information, please contact Toni Kerns, ISFMP Director, at 703.842.0740 or tkerns@asmfc.org.
September 21, 2017 — The New England Fishery Management Council, which has not convened a full council meeting in Gloucester since November 2006, will address a proposed amendment to limit access to the whiting fishery when it convenes here next week.
The council, set to meet Sept. 26 to 28 at the Beauport Hotel Gloucester, also is expected to spend significant time on groundfish issues, including the groundfish monitoring amendment.
The whiting amendment, according to the council’s agenda, will be one of the first issues facing the council when the three days of meetings open Tuesday at the harborside hotel in The Fort neighborhood.
The council’s whiting committee will present its report centered around Amendment 22, which deals with limiting access, permitting and possession limits within the whiting fishery actively fished by many Gloucester boats.
Whiting, popular in areas of New York City and Philadelphia, also is at the center of local efforts to promote under-utilized species of fish from local waters to retailers, restaurants and the consuming public.
September 21, 2017 — NEW BEDFORD, Mass. — Documents filed in federal court Monday reveal that a local buyer has been identified for Carlos Rafael’s fishing permits. The potential deal would remove Rafael from commercial fishing, according to a 14-page document filed by Rafael’s attorneys opposing federal forfeiture.
The single buyer is identified as having “a spotless compliance record” to purchase at least the 13 groundfish permits and vessels. The document is unclear if Rafael’s additional permits and vessels, estimated to be at least 35 in total, are included in negotiations. However, it states, “Rafael has taken substantial steps to voluntarily remove himself from the federal fishery entirely in a manner that does not jeopardize New Bedford’s economy.”
The document appraises the 13 groundfish permits, related to Rafael’s illegal reporting guilty plea in March, as worth more than $30 million. Rafael’s ownership, excluding other business partners’ shares, amounts to more than $19 million. The purchase price for the identified buyer is $16,333,558, according to the document.
In contacting a number of sources within the fishing industry Wednesday, The Standard-Times found no evidence that this deal had been completed. Rafael is scheduled to appear Monday and Tuesday for sentencing in U.S. District Court in Boston.
Two prominent businesses in New Bedford possess the means to acquire the permits based on financial means and ability to operate a fleet of that size: Whaling City Seafood Display Auction and Eastern Fisheries. Neither returned requests for comment.
September 21, 2017 — The following was released by the Atlantic States Marine Fisheries Commission:
The Atlantic States Marine Fisheries Commission’s (Commission) Atlantic Herring Section Members from Maine, New Hampshire, and Massachusetts met today to revise effort controls in the Area 1A Trimester 2 fishery as well as set effort controls for Trimester 3.
Trimester 2 Effort Controls
The Section revised the effort control measures for the 2017 Area 1A Trimester 2 (June 1 – September 30) fishery. The revised measures are underlined and become effective Sunday, September 17, 2017.
Days Out of the Fishery
Weekly Landing Limit
At-Sea Transfer and Carrier Restrictions (no changes were made)
The following applies to harvester vessels with a herring Category A permit and carrier vessels landing herring caught in Area 1A to a Maine, New Hampshire or Massachusetts port.
The initial Area 1A sub-annual catch limit (ACL) is 31,115 metric tons (mt) after adjusting for a carryover from 2015 and the research set-aside. The Section allocated 72.8% of the sub-ACL to Trimester 2 and 27.2% to Trimester 3. After incorporating the 295 mt fixed gear set-aside and the 8% buffer (Area 1A closes at 92% of the sub-ACL) the seasonal quotas are 20,625 mt for Trimester 2 and 7,706 mt for Trimester 3.
Landings will be monitored closely and the fishery will be adjusted to zero landing days when 92 percent of the trimester’s quota is reached.
Fishermen are prohibited from landing more than 2,000 pounds of Atlantic herring per trip from Area 1A on no landing days.
Trimester 3 Effort Controls
Section members set Area 1A (inshore Gulf of Maine) days out measures for Trimester 3 (October 1 – December 31). Section members, with input from industry, agreed to three consecutive landing days until 92% of the Area 1A sub-ACL is projected to be harvested or until further notice. Vessels may only land once every 24-hour period.
Trimester 3 landings will be closely monitored and the directed fishery will close when 92% of the Area 1A sub-ACL is projected to be reached. Fishermen are prohibited from landing more than 2,000 pounds of Atlantic herring per trip from Area 1A until the start of Trimester 3. For more information, please contact Toni Kerns, at 703.842.0740 or tkerns@asmfc.org.