Saving Seafood

‘The government is what created Carlos Rafael’

January 18, 2018 — NEW BEDFORD, Mass. — Bill Straus saw the writing on the wall years ago.

In 2009 — eight years before Carlos Rafael went to prison — the representative of Bristol’s 10th District spoke out during the establishment of the current catch-share system in the Northeast fishery. And even with Rafael behind bars, Straus says the threat of another Codfather emerging is ever present.

“The risk is still there,” Straus said. “And that’s why what comes out of the different remedies is so important.”

NOAA defines catch shares as a portion of catch for a species that is allocated to individual fishermen or groups. Each holder of a catch share must stop fishing when his/her specific share of the quota is reached. It’s often also looked at as quota. Fishermen and organizations can buy and sell quota.

Like any industry, the largest organization buys the smaller entities, whether it’s Disney purchasing Fox, AT&T attempting to acquire Time Warner or Rafael acquiring more quota.

“Catch shares are complicated things; there’s pluses and minuses,” SMAST Professor Dan Georgianna said. “Almost every study of catch shares shows decline in employment.”

Straus echoed that in a letter to the editor published in 2009 and in a conversation with The Standard-Times on Wednesday.

“The system encourages one owner or permit holder to gobble up the permits, and that it really works to that effect in a stressed fishery like New England groundfish,” Straus said. “What Rafael was able to do was approach people who had tiny bits of shares, and say, ‘I’ll just take it off your hands because you can’t afford to be sending your boat off to get that tiny amount.’”

In buying permits from across the Northeast, Rafael became one of the biggest organizations on the East Coast, not only catching the fish but also using Carlos Seafood Inc. as the landing’s dealer, which masked the act of misreporting.

Read the full story at the New Bedford Standard-Times

 

Study: 300 jobs lost in first month of NOAA groundfishing ban

January 17, 2018 — NEW BEDFORD, Mass. — Nearly two months have passed since NOAA imposed a groundfishing ban on Carlos Rafael’s fleet. Those within the Port of New Bedford estimate it’s put upward of 80 fishermen out of work.

That number only scratches the surface according to a study done by SMAST professor Dan Georgianna.

Within the first 30 days of the ban, Georgianna estimates that across the Northeast 300 jobs were lost, with an income loss of about $5.7 million. When including the retail loss, the number surges to $12 million.

“They’re estimates, but I think they’re pretty good estimates,” Georgianna said.

The numbers include all those linked to Rafael’s vessels: fishermen, those working at the port handling Rafael’s landings, like lumpers or cutters, restaurants that once served Rafael’s fish and even the grocery stores that supplied his vessels with food for trips.

Georgianna performed the study at the request of Mayor Jon Mitchell, after NOAA banned groundfishing for Sector IX in November. Sector IX is comprised of Rafael fishing vessels. The ban represented NOAA’s penalties lobbied against Rafael.

Georgiana said he was not compensated for the study.

He used a model developed by NOAA to estimate the economic effects on harvesting grounfish, including supplying and maintaining the vessels, processing and wholesaling. He also used a model developed by Michigan State University to estimate the retail effects.

Read the full story at the New Bedford Standard-Times

 

Rafael Faces New Allegations For Violations In Scallop Fishery

January 16, 2018 — A New Bedford fishing mogul known as “The Codfather” is facing new federal allegations for misreporting the amount of fish harvested by his fleet, this time in the scallop fishery.

“The Codfather,” or Carlos Rafael, is currently serving a 46-month prison sentence for falsifying groundfish quota, and for other offenses including tax evasion and bulk cash smuggling.

Now, the National Oceanic and Atmospheric Administration is alleging Rafael lied about how many scallops four of his vessels caught during fishing trips in 2013. NOAA is looking to revoke permits issued to those vessels and charge Rafael a penalty of  $843,528.

Peter Shelley, senior counsel at the Conservation Law Foundation, an environmental advocacy group, said these new allegations are critical.

“I think (these allegations) will be a strong enough deterrent that will really discourage people who might want to break the law from doing that, and it certainly will support the many fishermen in the fishery who obeyed the law that they’re not doing it for vain, that the agency will back them up,” Shelley said.

Read the full story at Rhode Island Public Radio

 

Massachusetts: New Bedford, Carlos Rafael pop up on Netflix show

January 16, 2018 — The Netflix show “Rotten” is a six-part docuseries that focuses on where food comes from, including cod.

In the series, which debuted Jan. 5, each episode focuses on a different food: honey, peanuts, garlic, chicken, milk and cod.

“As the global fish supply dwindles, the industry faces crises on all sides — including crooked moguls, dubious imports and divisive regulations,” according to the description of Episode 6 “Cod Is Dead.”

Read the full story and watch the series trailer at the New Bedford Standard-Times

 

New Charges Against Carlos Rafael Include Count Against Sector IX, 12 Counts Misreporting Scallops

January 15, 2018 — SEAFOOD NEWS — The charging document released by NOAA revoking Carlos Rafael’s and Associated entities fishing permits contained a number of new allegations that were not part of the criminal trial.

One count was against sector IX, which applied to the entire sector, including Rafael’s vessels, was filing a false report of the volume of yellowtail flounder landed in the sector in 2011.  Through a special agreement, the statute of limitations on this alleged misreporting was waived by Rafael.

NOAA is seeking a $140,000 fine from all members of sector IX for this offense.

The other new charges all involve scallops during the 2013 fishing year.  12 of the counts are of falsely reporting the volume of scallops landed.

For example, on January 15, the vessel F/V Ilha Brava submitted a ‘broken trip’ report to NOAA, claiming the vessel only harvested 7,886 lbs of scallops on its trip.  In fact, the vessel landed 17,200 lbs.

The other eleven counts are similar.  Some include broken trip reports that were false.  Others include lying about the volume of scallops taken from a limited access area.

For example, September 13-18, the vessel F/V Acores reported it only caught 1851 lbs of scallops in a limited access area trip, when in fact it had caught 12,700 lbs.

Two counts involved vessels failing to transmit the position via the vessel monitoring system as required.

NOAA says that under Magnuson:

(1) In any case in which (A) a vessel has been used in the commission of an act prohibited under section 1857 of this title, (B) the owner or operator of a vessel or any other person who has been issued or has applied for a permit under this chapter has acted in violation of section 1857 of this title… the Secretary may—

(i) revoke any permit issued with respect to such vessel or person, with or without prejudice to the issuance of subsequent permits…[or]

(iii) deny such permit.

This is the authority they are using to revoke 38 permits, including two scallop permits which were not part of the original criminal complaint.

The full charging document can be read here.

This story originally appeared on Seafoodnews.com, a subscription site. It is reprinted with permission.

 

Pentony steps into NOAA’s top Atlantic post with much underway

January 15, 2018 — Michael Pentony, John Bullard’s successor as administrator of the National Oceanic and Atmospheric Administration’s (NOAA) Greater Atlantic region, is a “straight shooter,” who works toward “yes,” and has a lot of experience on fisheries management issues, sources tell Undercurrent News.

NOAA ended months of speculation on Thursday when it announced that Pentony, a long-time NOAA staffer and also a one-time member of the New England Fishery Management Council (NEFMC) staff, was its pick to lead all fishery policy making in the 100,000 square mile long region that stretches from the state of Maine to Cape Hatteras, in North Carolina, and the Great Lakes.

“Michael’s deep experience in every aspect of sustainable fisheries management, both commercial and recreational, positions him perfectly for this job. He is going to hit the ground running,” assured Chris Oliver, director of NOAA Fisheries, in a statement announcing the decision.

Bullard announced his retirement back in July, ending a nearly six-year rein in the region’s top spot, which comes with an office in Gloucester, Massachusetts, and beginning the agency’s search for a replacement. He said at the time that he had a long list of chores to complete before he could finish, most of which he took on during a recent flurry of activity at the agency.

However, Bullard left quite a few big matters for Pentony to finish up.

Pentony, who is set to assume his new role on January 22, enters his new job at the end of an eventful period, including the prosecution and sentencing of the owner of New England’s largest fishing operation, Carlos Rafael.

Read the full story at Undercurrent News

 

Massachusetts: SouthCoast fishermen call NOAA’s civil action against Carlos Rafael ‘overkill’

January 12, 2018 — NEW BEDFORD, Mass. — Current and former area fishermen balked at NOAA’s reach in its civil action against Carlos Rafael.

“It’s total overkill,” said Stephen Lozinak, captain of fishing vessel Marsheen Venture and who has been fishing for more than five decades. “The whole thing is overkill. All it’s doing is hurting the workers in the city of New Bedford.”

On Wednesday, NOAA laid out its civil case against Rafael, including revoking 38 commercial fishing permits and the operator permits of two scallop vessel captains. Other aspects include a $983,528 penalty, denying any future application by Rafael for a permit issued by NOAA, and revoking the seafood dealer permit issued to Carlos Seafood Inc.

Most of the allegations surround Rafael’s criminal activity, which he pleaded guilty to in March. However, NOAA also included allegations surrounding mislabeling scallops harvested in 2013 and misreported yellowtail flounder in 2012.

“It seems to be a much more severe penalty than the crimes called for,” Executive Director of New Bedford Seafood Consulting Jim Kendall said.

The sentiments echoed those of Mayor Jon Mitchell.

Read the full story at the New Bedford Standard-Times

 

NOAA seeks lifetime ban for jailed New Bedford fishing mogul

January 11, 2018 — The National Oceanic and Atmospheric Administration is seeking a lifetime ban from the fishing industry for jailed New Bedford fishing mogul Carlos Rafael, a revocation of the permit for his wholesale fish dealership, and a revocation of 38 fishing permits from 28 of his vessels. NOAA is also seeking new penalties in two additional cases unrelated to the one that put him in prison, according to a spokeswoman for the agency.

Rafael is serving a 46-month sentence after pleading guilty last year to falsifying fish quotas, false labeling of fish species, conspiracy, smuggling large amounts of cash out of the country and tax evasion. In September, a federal judge ordered U.S. Marshals to seize four of his fishing vessels and their fishing permits as part of a plea deal in the criminal case against Rafael, once the owner of one of the nation’s largest fishing fleets.

Rafael owned at least 44 vessels, including 10 vessels with scallop permits and 43 that also had lobster permits, the two most valuable fisheries in the Northeast. Many of those vessels continued to fish, even after he was jailed. But in November, NOAA regional director John Bullard ordered groundfish Sector IX, a fishing cooperative dominated by Rafael to stop fishing, saying the sector had failed to account for his illegal fish and hadn’t enforced its own rules. There are 60 groundfish permits in Sector IX, 22 of which were actively fishing.

Read the full story at the Cape Cod Times

 

Massachusetts: NOAA Moves to Revoke All Carlos Rafael’s Permits, New Charges Include Cheating on Scallop Landings

January 11, 2018 — SEAFOOD NEWS — NOAA announced yesterday that they have filed a charging document to revoke all 38 of Carlos Rafael’s fishing permits, the dealer license for Carlos Seafood, and the scallop permits issued to two of Rafael’s scallop vessels.

The charges go beyond the criminal complaint of cheating on landings reporting, for which Rafael is already serving prison time. Out of 35 separate charges, 15 are new charges for violations in the scallop fishery.

NOAA claims that on four separate fishing trips in 2013, Rafael and related entities, along with two of his fishing vessel operators, filed false reports regarding the amount of scallops harvested by four vessels. For those violations, NOAA seeks to revoke permits issued to these vessels and a $843,528 penalty.

NOAA is seeking a total of $983,528 in civil fines.

Charging documents are how NOAA pursues a civil case before an administrative law judge.

They can include both NOVA (notice of violation for fishing activities) and NOPS (Notice of Permit Sanctions) and requests for civil fines.

Once the case is heard before an administrative law judge, the decision can be appealed to the NOAA administrator. If the parties object to the NOAA administrator’s decision they may then proceed to district court. However, according to lawyers familiar with NOAA procedures, the decision will not be set aside if it is supported by substantial evidence.

The civil action alleges 35 separate violations.

Counts 1-19 are based on Rafael’s conduct involved in his recent criminal case, specifically, the misreporting of species landed. For these violations, NOAA seeks to revoke the federal fisheries permits associated with the vessels at issue in the criminal case, but does not seek monetary penalties.

Counts 20-35 involve conduct unrelated to Rafael’s criminal case. Count 20 alleges that Rafael and related entities misreported where they caught yellowtail flounder in 2012. For this violation, NOAA seeks to revoke numerous permits involved and a $140,000 penalty.

Counts 21-35 involve misreporting in the scallop fishery.

It is important to note that before the administrative judge, normal rules of evidence don’t apply, and instead the ruling is made based on a preponderance of evidence.

This story originally appeared on Seafoodnews.com, a subscription site. It is reprinted with permission.

 

John Bullard: Incomplete investigation by Rafael sector is ‘show stopper’

January 9, 2018 — John Bullard, the outgoing northeast region administrator for the National Oceanic and Atmospheric Administration, has provided a clue as to what he believes is needed to re-open groundfish harvesting in Sector IX, Carlos Rafael’s former fishing group.

“As far as we know, the sector’s enforcement committee has not yet completed an investigation of the sector’s operations issues or determined the full extent of the sector’s non-compliance,” he says in a column published in South Coast Today, a newspaper serving New Bedford, Massachusetts, the port city Sector IX calls home.

“That’s a show stopper.”

Bullard has heard plenty of criticism from the newly constituted board of Sector IX, the mayor of New Bedford, Massachusetts, out-of-work crew members and many others since he announced his decision in November to shut down all groundfish harvesting for the group nearly five months before the season was due to end on April 30.

Read the full story at Undercurrent News