Carlos Rafael Archives - Page 18 of 28

Gloucester Times: Carlos Rafael case highlights failings of regulatory system

October 3, 2017 — Sometime early next month, Carlos Rafael is expected to report to a federal prison to begin serving a 46-month sentence for criminal conspiracy and tax evasion.

Rafael, the 65-year-old New Bedford-based fishing magnate, admitted to a judge earlier this year that he had lied to federal fishing regulators about the nature and size of his groundfish landings and bulk smuggling.

At sentencing last week, U.S. District Judge William G. Young rejected the argument from the man who liked to call himself “The Codfather” that the fraud was necessary to protect the jobs of his workers.

“This was stupid,” Young told Rafael. “This was a corrupt course of action from start to finish. It’s a course of action of extensive corruption designed to benefit you, to line your pockets. That’s what it is and that’s why the court has sentenced you as it has.”

Good for Young for handing down a stiff sentence (Rafael was seeking probation). The Codfather’s story, however, does not end here. His arrest and prosecution laid bare a broken regulatory and monitoring system.

Read the full editorial at the Gloucester Times

Fish council to NOAA: Punish Rafael’s sector

October 2, 2017 — The New England Fishery Management Council wrapped up its three days of meetings in Gloucester last week, but not without sending a message to NOAA Fisheries that it’s time to consider possible enforcement actions against the New Bedford fishing sector that allowed Carlos Rafael to operate illegally over a four-year period.

The council voted 13-1, with two abstentions, on Wednesday to request NOAA’s Greater Atlantic Regional Fisheries Office immediately enforce sector regulations governing Northeast Fishing Sector IX’s operation plan. The sector, according to members supporting the motion, failed in its responsibility to ensure Rafael and other members played by the catch-share rules.

The question is how to get the sector to compensate the fishery for the more than 780,000 pounds of illegally landed or labeled fish that went misreported or unreported by Rafael. One suggestion was the sector be forced to buy additional quota commensurate with the overages, assuming enough quota exists for the species in question.

Read the full column at the Gloucester Times

NE Council in Rebuke to NOAA Demands Enforcement Against Rafael’s Sector IX Co-op for Overfishing

September 28, 2017 — SEAFOOD NEWS — The New England Fishery Management Council voted 13-1 to ask NOAA to immediately enforce regulations governing fish quota allocations to sectors in New England. The move reflected growing frustration with NOAA’s lack of enforcement for Carlos Rafael’s overfishing.

Separate from the criminal trial and the issues of vessel forfeiture, Rafael’s Sector IX Co-op is in direct violation of Co-op requirements to correctly report catch, and to not exceed their quota.

Sector IX has mis-reported and exceeded its quota by nearly 783,000 lbs during a four year period.

NOAA regulations require that when Sectors have overages, they either purchase the quota required, or have that amount deducted from their future allocations. Any overages also expose the sector to civil penalties and permit sanctions. So far Sector IX has been allowed to continue fishing with none of these penalties months after Rafael pled guilty to 26 separate counts of falsifying fishing records.

Until now, NOAA, through administrator John Bullard, has said that any actions would await the conclusion of the criminal prosecution of Rafael. But many have objected that the blatant violations by Sector IX, which was set up primarily for Rafael’s vessels, have not resulted in anything except business as usual for the sector, despite Rafael’s guilty plea in April of this year.

The Council’s first thought was again to avoid the issue until NOAA has addressed the permit violations and vessel seizures. But the council reversed course when asked directly to take a position on the lack of enforcement of sector regulations.

Maine DMR commissioner Patrick Keliher made a motion to request immediate enforcement action against Sector IX.

“If we don’t enforce these regulations, how can the public trust us to manage a public resource? “ asked Matthew McKenzie, a member of the NEFMC who seconded the motion.

The motion passed 12-2.

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

Constitutionality of seizing Carlos Rafael’s permits in question

September 27, 2017 — BOSTON –Judge William Young decided half of Carlos Rafael’s fate on Monday: The New Bedford fishing mogul was sentenced to 46-months in prison with three years supervised release and a $200,000 fine.

The other half, which Young continues to take under advisement, involves the 65-year-old’s 13 groundfish vessels and permits.

In court Monday, Young repeatedly questioned the constitutionality of the forfeiture, citing the excessive fines clause in the Eighth Amendment.

Young said courts with higher authority have heard and decided that fines exceeding four-times the maximum guideline are unconstitutional.

Regardless of how many permits Young orders to be forfeited, he made it clear he has no authority to decide what’s done with them.

NOAA’s guidelines call for the permits to be redistributed throughout the Northeast, which is why for months organizations and politicians have publicly called for redistribution or a deal that would remove Rafael from the industry. Many arguments focused on all 13, without consideration of a partial forfeiture.

Argument against redistribution

Allyson Jordan actually contributed to a portion of Rafael’s groundfish permits.

She sold two boats and four groundfish permits. Jordan said Maine’s fishermen had no interest in the permits until Rafael entered the picture.

“He bought permits and boats to make his business survive,” Jordan said. “I don’t believe they should be given back to the state of Maine. The state of Maine did nothing to help my industry, not to mention my business.”

“Everyone is coming out of the woodworks now,” Jordan said. “To be honest, they could have bought the permits.”

Support of redistribution

The Cape Cod Commercial Fishermen’s Alliance, which also manages the Cape Cod Fishermen’s Trust, also contributed to Rafael’s enterprise, but argued for redistribution of the permits as well as better monitoring.

According to Seth Rolbein, the director of the Cape Cod Fisheries Trust, Rafael acquired more nearly a million pounds of quota from the Trust.

From 2011 through 2015, the Trust leased 992,646 pounds of quota. The Trust has no records from 2010 and didn’t lease any to Sector IX after the U.S. Attorney released the indictment, tying Rafael to falsely labeling fish quotas.

“Our priority is to service our fishermen and our community,” Rolbein said. “If there are fish stock that our community is not using that we can not lease out at our subsidized rate to our own fishermen, we then will lease out to other sectors. The trust will lease fish to other sectors. But we will only do that once we’re satisfied that our own fishermen can’t use or don’t have use for that quota.”

What’s next?

The defense revealed Monday that Richard and Ray Canastra, of Whaling City Seafood Display Auction, have entered a Memorandum of Agreement to purchase Rafael’s entire fleet. Neither the U.S. Attorney nor NOAA have taken a final position on the sale.

Read the full story at the New Bedford Standard-Times

New England fishing council frozen until NOAA, judge done with Rafael

September 27, 2017 — GLOUCESTER, Mass. — There is no shortage of changes the National Oceanic and Atmospheric Administration could make to the way catch limits are regulated and enforced in the Gulf of Maine in the wake of the Carlos Rafael’s sentencing on Monday. But first it will take recommendations from the New England Fishery Management Council (NEFMC), and the 17-member panel this week put off staking out a position.

There is not yet a consensus in the group, which will wait to see how US District Court Judge William Young handles an argument over how much of Rafael’s fishing fleet will be seized by the federal government and what, if any, civil money penalties come from the National Oceanic and Atmospheric Administration before addressing the issue, said John Quinn, NEFMC’s chairman.

“We’ve got a regulation in place and we’ve first got to see what and how that regulation is applied,” Quinn told Undercurrent News on Tuesday, during a break in the first day of the group’s three-day regular meeting at a hotel on the water here.

Young gave Rafael a 46-month prison sentence and ordered him to pay more than $300,000 in fines and penalties in a Boston federal court for misreporting nearly 783,000 pounds of fish between 2012 and early 2016, but he said he needed more time to consider the arguments made by prosecutors and Rafael’s defense team regarding an effort to seize his assets.

Read the full story at Undercurrent News

NEFMC to Review Carlos Rafael Sentence, Tuesday, September 26

September 26, 2017 — The following was released by the New England Fishery Management Council:

As many of you are aware, Carlos Rafael was sentenced today, September 25, 2017, in U.S. District Court in Boston. The case reference is “United States of America v. Carlos Rafael No. 16-CR-10124-WGY.” A press release describing the sentence was issued by the U.S. Attorney’s Office for the District of Massachusetts. It is available at Rafael Sentencing.

The New England Fishery Management Council will review the sentence tomorrow morning, Tuesday, September 26, shortly after opening up its three-day meeting in Gloucester, MA at the Beauport Hotel. Reappointed Council members will be sworn in, and the annual election of officers will be conducted before the Rafael case is discussed.

WEBINAR INFORMATION: A webinar is available for this meeting. Registration details can be found at webinar. The agenda and meeting materials are at NEFMC.

THE SENTENCE: The U.S. Attorney’s Office stated, “Carlos Rafael, 65, of Dartmouth, was sentenced by U.S. District Court Judge William G. Young to 46 months in prison and three years of supervised release, during which time he is banned from working in the fishing industry. The Court also ordered Rafael to pay a fine of $200,000 and restitution to the U.S. Treasury of $108,929. Rafael may also be subject to forfeiture of a portion of his fishing fleet, but the Court held that issue for further consideration.”

EXECUTIVE DIRECTOR’S COMMENT: Immediately following the sentencing, New England Fishery Management Council Executive Director Tom Nies said, “Carlos Rafael is a criminal who stole from his fellow fishermen and the public by intentionally misreporting his catch. His conduct was reprehensible and the criminal penalties he received are well-deserved. We once again thank our government enforcement agencies for bringing him to justice.”

WHAT RAFAEL DID: “From 2012 to January 2016, Rafael routinely lied to the National Oceanic and Atmospheric Administration (NOAA) about the quantity and species of fish his boats caught in order to evade federal quotas designed to guarantee the sustainability of certain fish species,” stated the U.S. Attorney’s Office. “During that period, Rafael misreported to NOAA approximately 782,812 pounds of fish, telling NOAA that the fish was haddock, or some other abundant species subject to high quotas, when in fact the fish was cod, sole, or other species subject to strict quotas. After submitting false records to federal regulators, Rafael sold much of the fish to a wholesale business in New York City in exchange for duffle bags of cash. During meetings with the undercover agents, Rafael said that in his most recent dealings with the New York buyer he received $668,000 in cash. Rafael smuggled at least some of that cash out of the United States to his native Portugal, hiding it there to evade federal taxation on that revenue.”

GUILTY PLEA: The U.S Attorney’s Office stated, “In March 2017, Rafael pleaded guilty to one count of conspiring to commit offenses against the United States, 23 counts of false labeling and fish identification, two counts of falsifying federal records, one count of bulk cash smuggling, and one count of tax evasion. He was initially arrested and charged in February 2016. Rafael, the owner of Carlos Seafood Inc., based in New Bedford, Mass., owned 32 fishing vessels through independent corporate shells and 44 permits, which amounted to one of the largest commercial fishing businesses in the United States.”

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

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