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Former BASE auction employees implicate owners in Carlos Rafael scandal

February 26, 2021 — Two former employees of the Buyers and Sellers Exchange (BASE) in New Bedford, Massachusetts, U.S.A. have alleged that the owners – brothers Raymond and Richard Canastra – were aware of and involved in falsifying quotas performed by the “Codfather” Carlos Rafael.

Rafael pleaded guilty in 2017 to falsifying fish quotas, tax evasion, and conspiracy in the wake of allegations he was connected to a criminal fishing scheme involving the evasion of fishing quotas and the smuggling of profits to Portugal. Following the criminal case, a civil case brought by NOAA ensued, which Rafael settled in August 2019.

Read the full story at Seafood Source

Blue Harvest CEO expects 15 Rafael vessel deal to close within weeks

January 14, 2020 — Now that their only competitor has dropped out of the bidding, Keith Decker, the CEO of Blue Harvest Fisheries, expects to close his company’s deal for 15 of Carlos Rafael’s groundfish vessels in the US port of New Bedford, Massachusetts, within the next few weeks, The Standard-Times, the community’s local newspaper, reported Friday.

“At this time, no, I don’t see any further impediments to closing the transaction,” he reportedly told the newspaper, adding that Blue Harvest plans to keep the vessels in New Bedford.

Undercurrent News broke the news on Jan. 8 that Richard and Raymond Canastra, the founders and owners of the Buyers and Sellers Exchange, New Bedford’s main seafood auction, have withdrawn their offer to acquire the vessels and their related permits.

The Canastras, back on Dec. 20, attempted to use a “right of first refusal” rule in New England’s Sector VII, which gives members of the greater  Northeast Sector Service Network — including BASE — 30 days to match any offer for vessels by companies or persons from outside the network, jumping ahead of Blue Harvest and its $19.3 million bid made on Nov. 21. The Canastras said they planned to sell the boats and their permits to individual harvesters in New Bedford. However, the two brothers said they lost their financial backers when Blue Harvest filed a lawsuit, on Dec. 23, in a Massachusetts state court.

Read the full story at Undercurrent News

Canastras: Backers for Rafael vessels withdrew after Blue Harvest lawsuit

January 9, 2020 — Richard and Raymond Canastra say the reason they withdrew their $19.3 million offer to buy 15 of Carlos Rafael’s groundfish vessels, in New Bedford, Massachusetts, is because the lawsuit filed by Blue Harvest Fisheries scared off their backers.

Undercurrent News broke the news Wednesday morning that the Canastras, the founders and owners of the Buyers and Sellers Exchange (BASE), New Bedford’s largest seafood auction, were ending the fight which has served to divide the New England fishing community.

The two brothers did not immediately respond to requests by Undercurrent for an explanation. On Thursday, however, they answered with a press release sent by Cassie Canastra, BASE’s director of operations, and the daughter of Raymond Canastra.

“It was not BASE’s intention to acquire and own these permits and vessels for BASE’s long-term ownership,” the statement reads. “In fact, it was quite the opposite.”

Read the full story at Undercurrent News

Bregal’s Blue Harvest set for 15 Rafael vessel deal after Canastras withdraw offer

January 8, 2020 — Richard and Raymond Canastra, the founders and owners of the Buyers and Sellers Exchange (BASE), the seafood auction in New Bedford, Massachusetts, have withdrawn their offer for convicted former commercial fishing mogul Carlos Rafael’s 15 groundfish vessels, essentially giving the boats and their related permits to Blue Harvest, Undercurrent News has learned.

The details are as scant as the three sentences contained in an email sent by one of the attorneys to the others involved in the highly contentious fight to acquire the vessels, a copy of which has been obtained by Undercurrent News.

“BASE has provided notice to the Rafaels that they are not moving forward with the transaction. Blue Harvest is free to complete the transaction with Rafaels. Kindly forward a stipulation of dismissal of the Blue Harvest matter,” reads the email.

Read the full story at Undercurrent News

MASSACHUSETTS: US auction owners seek to spoil Blue Harvest’s deal for Rafael groundfish vessels

December 26, 2019 — Carlos Rafael’s remaining fleet of as many as 35 groundfish vessels and skiffs in the US port city of New Bedford, Massachusetts, may not be under Blue Harvest Fisheries’ Christmas tree after all.

Richard and Raymond Canastra, the founders and owners of the Buyers and Sellers Exchange (BASE), a nearly 26-year-old seafood auction house, also in New Bedford,  informed the members of New England fishing sector 7 on Friday that they are taking advantage of the group’s right of first refusal (ROFR) rules to seek acquisition of the vessels and their related permits, Undercurrent News has learned from its sources.

Additionally, the Canastras have filed another challenge to Rafaels’ earlier sale of six scallop boats and their related permits to Quinn Fisheries, a longtime New Bedford-based scalloping company, this time in federal court.

Undercurrent reported late last month how documents showed Blue Harvest, a US scallop and groundfish supplier backed by New York City-based private equity Bregal Partners, had signed a purchase agreement to buy the Rafael fleet and all of their associated permits for nearly $25 million. The deal includes millions of pounds of quota for at least eight types of fish in the northeast multispecies fishery, including cod, haddock, American plaice, witch flounder, yellowtail flounder, redfish, white hake and pollock.

Read the full story at Undercurrent News

US auction owners seek to spoil Blue Harvest’s deal for Rafael groundfish vessels

December 23, 2019 — Carlos Rafael’s remaining fleet of as many as 35 groundfish vessels and skiffs in the US port city of New Bedford, Massachusetts, may not be under Blue Harvest Fisheries’ Christmas tree after all.

Richard and Raymond Canastra, the founders and owners of the Buyers and Sellers Exchange (BASE), a nearly 26-year-old seafood auction house in New Bedford, Massachusetts, informed the members of New England fishing sector 7 on Friday that they are taking advantage of the group’s right of first refusal (ROFR) rules to seek acquisition of the vessels and their related permits, Undercurrent News has learned from its sources.

Additionally, the Canastras have filed another challenge to Rafaels’ earlier sale of six scallop boats and their related permits to Quinn Fisheries, a longtime New Bedford-based scalloping company, this time in federal court.

Undercurrent reported late last month how documents showed Blue Harvest, a US scallop and groundfish supplier backed by New York City-based private equity Bregal Partners, had signed a purchase agreement to buy the Rafael fleet and all of their associated permits for nearly $25 million. The deal includes millions of pounds of quota for at least eight types of fish in the northeast multispecies fishery, including cod, haddock, American plaice, witch flounder, yellowtail flounder, redfish, white hake and pollock.

Read the full story at Undercurrent News

MASSACHUSETTS: SouthCoast Woman of the Year: Canastra’s drive helping keep groundfishing alive

December 31, 2018 — Among the grizzled lifelong fishermen sat six-year-old Cassie Canastra. She staked claim to the seat toward the right side of the second table in the small room where thousands of pounds of fish were auctioned off each day. Her spot faced the television and was the closest to the sweets brought by her father, Raymond.

Her pastry of choice: Malasadas.

“She knew I was going to go to the Portuguese bakery before work. She wanted that,” Ray said with a loud chuckle. “That’s the truth.”

The malasadas certainly didn’t deter her from begging her parents to wake hours before sunrise to arrive at the Buyers and Sellers Exchange seafood auction for 4:30 a.m.

Her father and uncle Richie both have fishing running through their blood. The gene was passed down to Cassie.

Read the full story at New Bedford Standard-Times

Massachusetts: A shell game in New Bedford? 55 boats scramble out of Sector IX, catching NOAA by surprise

March 30, 2018 — SEAFOOD NEWS — Something fishy is going on in New Bedford (excuse the terrible pun).

On March 26, the final day for sectors to confirm their rosters and membership for the 2018 fishing season, NOAA got letters from sector VII saying that no vessels will remain in Sector VII who were there last year, and that 16 of these vessels are joining sector VIII.

Then they were told that 55 vessels from sector IX are joining sector VII, including the 4 vessels owned by Carlos Rafael that have been judged subject to forfeiture.

Meanwhile, a separate letter from sector IX said that only three vessels would remain in that sector, that it would operate solely as a lease sector and those vessels would not fish.

What is going on here?

First, all three sectors VII,VIII, and IX are New Bedford groundfish sectors approved under the Northeast Groundfish management plan.

Each year, these sectors have to submit operation plans to NOAA, including the roster of vessels and the rules under which the vessels in the sector will fish.

After the guilty plea by Carlos Rafael, and the admission last fall by sector IX that its vessels, primarily associated with Rafael, had engaged in overfishing, NOAA suspended the operating permit for that sector.  That meant no vessels in that sector could continue to fish.

Since the fall negotiations have been going on between NOAA and Sector IX over how Sector IX might return to operations.  The primary obstacle is that NOAA has required the Sector to account for its overfishing, and to calculate how much fish must be deducted from its current allotments in order to pay back fish illegally harvested.

Secondly, NOAA has insisted on Sector IX developing a monitoring and catch reporting plan that would prevent illegal fishing.

By March, neither side had reached an agreement, and the issue of Sector IX was going to be a prominent part of the New England Fishery Management Council Meeting next week.

NOAA was blindsided by the switcheroo.

Much of what is going on in New Bedford is with the same actors.  Three Board Members from Sector IX would join the Board of Sector VII.  Meanwhile, the manager of Sector IX, Stephanie Rafael-DeMello, has said she would be moving to fleet operations management for Rafael’s vessels, instead of continuing full time as the manager of Sector IX.

One interpretation of this switch is that Sector IX is being effectively disbanded.

However, not all the promises made by Sector IX to NOAA are being carried over as the vessels move to sector VII.

One point mentioned in NOAA’s letter to the council is that Sector VII has requested that vessels owned by Carlos Rafael remain inactive in the fishery, although with rights to lease their quotas to other sectors or intra-sector, unless they are sold to another party.

But the 55 vessels transferring to Sector VII, including all those currently listed as inactive, could become operational within Sector VII with no changes to existing ownership.

Under NOAA rules, if a sector disbands after having overfished, the overfishing penalty is allocated among the vessels that had previously been in the sector, and deducted from their new sector allocation.

As Sector IX was unable to provide information about the overages of specific vessels, the time and cost of allocating the overages to the remaining vessels transferring out of the sector may be substantial.

The three inactive vessels remaining in Sector IX appear to be willing to shoulder the penalty, once it is agreed upon, and to pay it by having the overages deducted from the amount of their quotas that are leased. The move appears to be an attempt to get the other Sector IX vessels out from under the obligation to payback the sector overages.

All of this will be discussed at the council meeting, which promises to be interesting.

The driving factor here is that the New Bedford Auction, owned by the Canastra Brothers, needs to get some volume of groundfish back.  This has been greatly reduced by the suspension of sector IX.  Rafael vessels represented the largest source of groundfish for the private New Bedford auction.

The Canastras first tried to buy Rafael’s boats.  This did not go anywhere, as NOAA needs to give its approval.  Then they tried to set up a way to satisfy NOAA on Sector IX overages without providing a detailed accounting.  This was not accepted either.

Now they have participated in a wholesale abandonment of Sector IX and moved vessels to Sector VII, with the aim of first, hoping the vessels will be allowed to fish, or that in this situation inactive vessels can become active though still owned by their original Rafael connected owners.

Secondly, they may be hoping to clear the way for a sale of these vessels who are now potentially operating in a less tainted sector.

There has been a continuing political effort in New Bedford to try and keep the groundfish volumes that had been part of Rafael’s fishing operations within the port.

All of this maneuvering avoids the basic question before NOAA and the Council, which is whether the permits for the vessels that are now suspended will simply be allocated to New Bedford, or will they be subject to distribution to the rest of the New England groundfish fishery that was harmed by the rampant overfishing taking place in New Bedford.

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

 

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: Deal between Rafael, Canastra brothers worth $93M, still needs government OK

October 6, 2017 — NEW BEDFORD, Mass. — Richard and Ray Canastra offered $93 million to purchase 42 permits and 28 vessels as part of a “global settlement” which would remove Carlos Rafael from the commercial fishing industry, Richard Canastra told The Standard-Times on Thursday.

The brothers approached Rafael about six months ago, Canastra said, offering the fishing mogul, who pleaded guilty to falsifying fishing quota, bulk cash smuggling and tax evasion in March, a way out of the industry. The deal would include Rafael’s fleet of scallopers and accompanying permits.

Canastra said, Rafael mulled the offer over for a few days before negotiations began. The two parties eventually entered into a Memorandum of Agreement, which was mentioned in court documents. The Canastras weren’t revealed as the buyers until Rafael’s sentencing on Sept. 25.

While the Canastras and Rafael have agreed, the deal isn’t complete. NOAA and the U.S. Attorney haven’t taken a final position on the proposed sale, according to court documents.

Canastra said he “didn’t know” how likely the agreement was to becoming a done deal.

“We’re just waiting,” Canastra said. “The government has all our deal structure. We presented it to the government. They know the deal and how Carlos would stay out of the business.”

Read the full story at the New Bedford Standard-Times

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