Saving Seafood

New Bedford Standard-Times: Time for NOAA and Sector IX to strike deal

February 20, 2018 — Eighty New Bedford groundfishermen.

They’ve had no work now for almost three months.

In the end, those are the guys and it is their families who are paying the biggest price for Carlos Rafael’s longtime conspiracy to falsify fishing records and smuggle the cash overseas.

But since Rafael was the big guy on the New Bedford waterfront, the guy who owns the majority of the boats in Sector IX, the fishermen have been out of work since Nov. 20 when regional NOAA administrator John Bullard ordered the sector to stop fishing.

Bullard said that Sector IX has not accounted for the overages their group racked up while Rafael was mislabeling more than 700,000 pounds of fish. He has also argued that the reorganized sector has not enacted better enforcement provisions to prevent a repeat of the criminal activity.

For their part, Sector IX’s lawyer, Andrew Saunders, points out that Rafael was able to engage in his wrongdoing because he controlled both the fishing boats and was also the fish dealer (Carlos Seafood). That is no longer the case because all fish caught by Rafael’s boats must now be processed at the Whaling City Seafood Display Auction.

Saunders further pointed out to NOAA that the agency is aware that it is virtually impossible for Sector IX to determine the overages while the IRS is in possession of Rafael’s records until the start of the next fishing season in May. Still, in a Dec. 20 letter, Saunders, wrote NOAA that the sector is working to compile accounting for the misallocations of fish.

Complicating the whole scenario is who is going to control Rafael’s groundfish and scallop boats going forward as the federal judge has ordered him out of the commercial fishing business. Richard and Ray Canastra, owners of the display auction, have offered Rafael $93 million for 42 fishing permits and 28 boats, a deal that would keep the fishing effort in New Bedford, and the 80 fishermen employed. Not to mention all the New Bedford fishing supply and seafood processing operations that are dependent on Rafael’s fleet.

Read the full story at the New Bedford Standard-Times

 

One Square Mile FORUM: After the Codfather

February 14, 2018 — Before he pleaded guilty to flouting federal catch limits and smuggling money, Carlos Rafael, nicknamed “the Codfather,” controlled the largest groundfishing fleet that sailed out of New Bedford. How are the city’s fishing industries moving forward after the trial? What does the future hold for groundfishing and other fisheries? What are the biggest promises and challenges? What lessons can be learned from Carlos Rafael?

REGISTRATION IS FREE, BUT REQUIRED : REGISTER NOW THROUGH EVENTBRITE

Join Rhode Island Public Radio and UMass-Dartmouth for a public forum to discuss these and other topics related to New Bedford’s fishing industry.

WHEN:  Wednesday, February 21st from 6:00 to 7:00 PM.

View the whole announcement at Rhode Island Public Radio

 

Massachusetts: Rep. Keating Looking to ‘Speed Up’ Ending of NOAA Fishing Ban

February 12, 2018 — U.S. Representative William Keating recently met with new NOAA Regional Administrator Michael Pentony, and the congressman said he’s optimistic that the Sector IX groundfishing ban could soon come to an end.

“It was a great meeting,” Keating said. “There’s no learning curve with him in terms of what the issues are, and that’s an important thing.”

Keating met with Pentony on Tuesday night, just a few weeks after he was appointed the new regional administrator following the retirement of John Bullard.

“I requested, as soon as he was appointed, the opportunity to sit down with him,” Keating said. “He was great. He came to (Washington) D.C., sat down, and we talked for over an hour. We talked about general issues, but I also wanted to focus on what was going on in New Bedford in particular.”

The biggest issue, of course, is the groundfishing ban NOAA placed on Sector IX back in November. The ban is directly related to convicted “Codfather” Carlos Rafael, who owns 22 of the boats in Sector IX and whose illegal overfishing scheme has kept the sector from putting forth an operations plan acceptable to NOAA. Bullard said before his retirement that the ban cannot be lifted until the sector can accurately determine how much and what stocks Rafael overfished, and how the sector plans to go about making up for that number of lost fish.

Congressman Keating said his office has been in weekly contact with NOAA since the criminal proceedings against Rafael began last spring, because he said he knew then there would be repercussions that would reverberate through New Bedford and beyond.

Read the full story at WBSM

Massachusetts: Rep. Keating optimistic after meeting with NOAA on groundfishing ban

February 9, 2018 — NEW BEDFORD, Mass. — William Keating left a meeting with NOAA’s new regional administrator feeling optimistic regarding the agency’s stance on Sector IX.

The U.S. House member representing New Bedford met Tuesday night with Michael Pentony, who replaced John Bullard at NOAA and began his new role two weeks ago. Keating wanted to discuss the groundfishing ban that’s holding about 80 New Bedford fishermen off the water.

“What can I do to get people back fishing as quickly as possible?” Keating said. “That is creating my strong feelings of urgency around resolving the operations plan. That has to be done to go forward. NOAA is very clear about that.”

Neither NOAA nor Pentony would comment on the groundfishing ban placed on Sector IX.

However, Pentony also left the introduction with Keating with a feeling of optimism.

″(It was) very positive,” Pentony said. “I’m looking forward to continuing to work with the Congressman and his staff.”

Keating said his office remains in contact with NOAA on a weekly basis. The dialogue first began last spring.

The urgency, from Keating’s perspective results from the belief that the groundfishing ban established last November affects more than New Bedford.

As the most valuable fishing port in the country 17 years running, any splash in New Bedford ripples throughout Massachusetts, Keating said.

“It’s not only for our city, not only for our region, but for Massachusetts as a whole,” Keating said. “Having this cohesive industry situated the way that it is and the growth that can come from that … that is important in terms of the economic side that should be factored in.”

Because of its widespread effect on the state, Keating said he’s working with U.S. Senators Elizabeth Warren and Ed Markey on urging an immediate solution.

Read the full story at the New Bedford Standard-Times

 

Another New Bedford Scallop Boat Affiliated with Carlos Rafael Caught Cheating on Scallop Landings

January 30, 2018 — SEAFOOD NEWS — According to information posted by the Massachusetts environmental police, on Sunday January 28, they conducted a marine fisheries inspection aboard a federally permitted scallop vessel in New Bedford.  After observing the offload of the permitted limit of scallops, the police confirmed with the captain and crew that all sea scallops had been offloaded from the vessel.

During a subsequent inspection, police located five additional bags of shucked sea scallops hidden below a foot of ice and food stores.  The violation was documented and forwarded to NMFS.  The illegal sea scallops were held for disposition by NMFS.

Subsequent reporting was that the vessel in question was the FV Dinah Jane, permit #320244, owned by Leeanne & Noah Fishing LLC.  This permit was ordered revoked by NOAA on January 10th, with a 30 day deadline for the owners to appeal the notice of violation.

The owners of the F/V Dinah Jane also owned the F/V Hercules together with Carlos Rafael, and were cited for filing false landing reports.

The vessel Dinah Jane and its permit was cited in count 15 of the NOVA sent by NMFS to Carlos Rafael, for filing false records with Sector IX, which was cited in count 20.  Sector IX is currently under suspension by NOAA for failing to properly account for catch overages and false reporting.  However, scallop fishing is not subject to the sector allocations under the New England multi-species groundfish management plan, so the vessel was able to continue to fish.

The proposed permit revocation would take effect on February 10th at the earliest.  The vessel was still legally able to harvest scallops until then.

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

 

John Sackton: Claims of 300 Job Losses Due to Sector IX shutdown Are Overblown

January 19, 2018 — SEAFOOD NEWS — Frequent claims that the NOAA action against Sector IX for failure to comply with its operational permits have cost New Bedford 300 jobs are simply not true.  The figure being bandied about is based on an economic model, and it inflates the impact of this short term action.

Economist Dan Georgianna created the 300 lost jobs number by looking at the volume and value of what sector IX vessels delivered to the Whaling City Display Auction during the one month from Nov. 20th to Dec 20th 2016, and assumed that if the sector was still operating, they would land the same amount this year.

Georgianna first assumes that the four vessels seized by the court had quotas that would be immediately transferred to other operating sector IX vessels. This is a unlikely assumption, as NMFS has the power to approve or disapprove such transfers, and they have emphatically said they will not permit sector IX to continue business as usual without restitution for fishing violations. In the real world, no one would count on such vessels continuing to provide an economic return.

But the 300 jobs figure also seems aimed at pressuring NOAA to take a more lenient position regarding the operational permit of sector IX.

Here too, the math is dubious. For example, Georgianna says the sales impact of the shutdown is approximately $5.6 million, which is thought to represent about 49 jobs involving harvesters, processors and wholesalers in New Bedford, with the majority of these jobs being harvester jobs

This is a good estimate. But then, Georgianna relies on a Michigan state visitor spending survey for restaurant multipliers, and also includes his own estimates of retail multipliers, and using these models says that the loss of restaurant and retail jobs is much greater. He claims that the number of restaurant waiter, chef and supermarket jobs lost due to the Sector IX shutdown is around 250 jobs.

No restaurant worker got laid off because the owner couldn’t get fish from sector IX. Same thing with Retail. In both cases, the restaurants and retailers simply replaced the product they could not get from Sector IX with other product, including seafood not from New England.

So this loss of 250 jobs is largely fictitious, and certainly is not something that could possibly have happened just in New Bedford, or just in New England.

The actual fair disposition of permits following Sector IX’s failure to monitor illegal fishing remains a complex issue for NOAA, but it certainly is not helped by a public campaign by New Bedford officials claiming 300 job losses in their city, when in fact the real number is around 50, most of whom are harvesters working on the vessels that are shut down because of violations by their Sector.

For those who want to judge the numbers for themselves, here is a link to the report.

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

 

‘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

 

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