Saving Seafood

MASSACHUSETTS: Carlos Rafael to leave commercial fishing behind after spending years in prison for his crimes

September 26, 2017 — U.S. District Court Judge William Young sentenced former fishing magnate Carlos “Codfather” Rafael to 46 months of imprisonment on Monday, 25 September, for his role in orchestrating a quota and tax evasion scheme out of his New Bedford, Massachusetts-based business, Carlos Seafood.

Sentencing deliberation is continuing on Tuesday, 26 September as the court considers the fate of Rafael’s 13 groundfish vessels and permits, which have been listed for forfeiture as a tentative condition of his guilty plea.

Rafael is scheduled to begin serving his prison sentence on 6 November, when he is expected to report to authorities at an assigned penal facility. His legal team has requested that Rafael serve out his prison sentence at Fort Devens, located between the Massachusetts towns of Ayer and Shirley. In addition to incarceration, Young also ordered three years of supervised release for Rafael, and mandated he pay a USD 200,000 (EUR 169,611) fine. Furthermore, Rafael has been barred by the court from having anything to do with the commercial fishing industry following his prison term and subsequent supervision period.

The deliberate, corrupt nature of Rafael’s crimes factored heavily into the sentencing terms, Young explained on Monday.

Read the full story at Seafood Source

Timeline: Case of Carlos Rafael

September 26, 2017 — Feb. 26, 2016: Federal authorities raided Carlos Seafood on South Front Street in New Bedford, arresting owner Carlos Rafael, 64, and bookkeeper Debra Messier, 60, both of Dartmouth, on charges of conspiracy and falsifying records. Rafael was held without bail; Messier was released on a $10,000 unsecured bond.

March 2, 2016: Rafael is allowed to return home under strict conditions of a $1 million bond; he is allowed to continue working, too. Rafael and his wife, Conceicao, agree to place their Tucker Lane home in North Dartmouth and Carlos Seafood as collateral for the bond.

March 25, 2016: Prosecutors receive an extension of the deadline to indict Rafael. The length of the deadline’s extension is not disclosed.

May 4, 2016: Rafael has been indicted by federal prosecutors for lying about fish catches and smuggling cash to Portugal through Logan airport in Boston, in a multi-year scheme involving hundreds of thousands of dollars, according to court documents. The indictment lists 27 counts against Rafael, for charges including conspiracy, false entries and bulk cash smuggling. Rafael is alleged to have falsely reported the species of more than 815,000 pounds of fish to the National Oceanic and Atmospheric Administration (NOAA) between 2012 and January 2016, according to the Office of U.S. Attorney Carmen Ortiz.

May 4, 2016: Antonio Freitas, 46, of Taunton is charged with using his special assignment status as a member of the Department of Homeland Security Task Force, which gave him access to restricted areas of Logan International Airport, to help Rafael smuggle cash out of the U.S. Freitas is a member of the Bristol County Sheriff’s Honor Guard.

Read the full story at the New Bedford Standard-Times

New Bedford Standard-Times: Fishing industry may get a win from Washington

September 25, 2017 — The unexpected re-examination of the status of the Northeast Canyons and Seamounts Marine National Monument under President Trump is a welcome development for New Bedford’s commercial fisherman.

The nearly 5,000 square miles of protected waters that lie about 130 miles southeast of Cape Cod was closed off to commercial fishing last year when President Obama designated the area the first Atlantic marine national monument. The decision came despite fishing industry outcries about both the lack of public input during the process and the harm to the fishing way of life.

Several industry organizations, including the New England Fishery Management Council, rightly pointed out, at the time, that fisheries have worked with government, scientific, and environmental communities for years to create regulations and oversight procedures to protect marine resources. And that important regional stakeholders were working on an ocean management plan to preserve resources.

Most notably, fisheries have been managed for more than 40 years under the federal Magnuson-Stevens Fishery Conservation and Management Act, put in place to protect marine environments, prevent overfishing, and promote biological sustainability of marine life.

Read the full editorial at the New Bedford Standard-Times

Carlos Rafael sentenced to 46 months in prison

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.

Read the full story at the New Bedford Standard-Times

Scallop auction owners, friends of Carlos Rafael, tipped as likely fleet buyers

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.

Read the full story at Undercurrent News

NCFC Members to Testify at House Hearing on Fishery Bills

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:

  • H.R. 200 (Rep. Don Young), To amend the Magnuson-Stevens Fishery Conservation and Management Act to provide flexibility for fishery managers and stability for fishermen, and for other purposes.
  • H.R. 2023 (Rep. Garret Graves), To modernize recreational fisheries management “Modernizing Recreational Fisheries Management Act of 2017.”
  • H.R. 3588 (Rep. Garret Graves), To amend the Magnuson-Stevens Fishery Conservation and Management Act to provide for management of red snapper in the Gulf of Mexico, and for other purposes. “RED SNAPPER Act.”
  • Discussion Draft of H.R. ____ (Rep. Jared Huffman), To amend and reauthorize the Magnuson-Stevens Fishery Conservation and Management Act, and for other purposes.

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.

MASSACHUSETTS: Tech meets fish: Port of New Bedford launches ‘Ocean Cluster’

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.

Read the full story at the New Bedford Standard-Times

Rafael, potential buyer of fleet enter into Memorandum of Agreement

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.

Read the full story at the New Bedford Standard-Times

Fishing industry awaits Rafael outcome

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.

Read the full story at the Gloucester Times

Local buyer for Carlos Rafael’s fishing permits, court documents say

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.

Read the full story at the New Bedford Standard-Times