Carlos Rafael Archives - Page 24 of 28

MASSACHUSETTS: New Bedford Worries About What Happens To ‘The Codfather’s’ Fishing Permits

April 11, 2017 — Down on the docks of the Whaling City, everyone knows him as “Carlos.”

“I’ve been working for Carlos for 12 years now,” says Richard Mauzerolle of Weston. “Sometimes he should watch out who he’s talking to,” he adds with a laugh, referencing the IRS sting that landed Carlos Rafael guilty on 28 counts in late March. “But he’s a good guy.”

The fall of New Bedford fishing boss Carlos Rafael could be a big blow for the city’s port. And if his fishing permits are forfeited and end up in another state, it could hurt Massachusetts as a whole.

What happens to Rafael’s boats — and the permits attached to them — will be decided by a federal judge. And people in New Bedford want them to stay in the city.

‘He’s One Of My Main Livelihoods’

Mauzerolle is in the spray foam business — he insulates holds on fishing boats owned by Rafael. He’s one of hundreds of people who work with the man known as “the Codfather,” who gives Mauzerolle about a third of his business.

“He’s one of my main livelihoods right down in the area, so it’d be a shame to have him lose anything,” says Mauzerolle, standing in front of his box truck with a massive Donald Trump sign stuck to the side. Rafael, he says, has “brought this fishing industry back to where it’s supposed to be down here.”

In 2004, Rafael spoke to an archivist at the Working Waterfront Festival in New Bedford about how he amassed so many boats, highlighting the importance of diversifying between scallops and groundfish.

Read the full story and listen to the radio report at WBUR

Carlos Rafael faces $109K fine, loss of 13 vessels

April 4, 2017 — New Bedford fishing mogul Carlos Rafael may have to surrender up to 13 of his groundfishing vessels and must pay almost $109,000 in restitution to the Internal Revenue Service as part of his plea agreement with federal prosecutors.

Rafael pleaded guilty last Thursday to falsifying fish quotas, conspiracy and tax evasion in U.S. District Court in Boston and is scheduled to be sentenced there on June 27 by Judge William G. Young.

The 65-year-old Rafael could face up to 76 months in prison on the three charges — far less than the up to 20 years he would have faced under the original 27-count indictment. Federal prosecutors, however, have recommended a prison sentence of 46 months and a significant period of supervised release.

Young is not bound by the specifics of the plea agreement, nor must he follow federal prosecutors’ sentencing recommendations.

“Based on my experience, (Rafael) is probably looking at least three to four years in prison and a substantial fine,” New Bedford Mayor Jon Mitchell, a former federal prosecutor, told the Undercurrent News fishing website. “But I think the bigger question is what happens to his groundfish permits. They may be subject to forfeiture, but his forfeiture obligation can be subject in a number of ways.”

Read the full story at the Gloucester Times

New Bedford mayor: What’s next after Rafael’s guilty plea

April 3, 2017 — All eyes are on Carlos Rafael’s sizeable load of assets—32 fishing vessels, 44 permits and a business named Carlos Seafood—now that he’s facing up to 20 years of jail time when he receives his sentence in June.

His guilty plea agreement with the US government agrees to forfeiture of all 13 of his groundfish vessels, but his sizeable fleet of scallop vessels aren’t mentioned. A spokesperson at the Department of Justice (DOJ) declined to speculate on whether the federal government could seize these after his sentencing in June if Rafael couldn’t come up with the money to pay his fines, set at up to $7 million in the plea agreement.

New Bedford mayor Jon Mitchell, a former federal prosecutor, said there is flexibility within the terms of the plea agreement.

“Based on my experience, he’s probably looking at least three to four years in prison and a substantial fine,” Mitchell told Undercurrent News.

Rafael is facing multiple counts of federal crimes, some of which include a maximum sentence of five years and one of which provides a maximum sentence of 20 years.

“But I think the bigger question is what happens to his groundfish permits,” Mitchell said. “They may be subject to forfeiture, but his forfeiture obligation can be subject in a number of ways.”

Typically, in other cases where the government seizes assets, those assets are sold by the government in an open auction; however, this case is unusual, making the asset sale process possibly run differently, a spokesperson for the DOJ told Undercurrent.

Such a sale at a government auction raises big concerns for Mitchell.

“There’s a chance they may be bought up by government interests outside the port, and that scenario may have a direct impact on the industry here,” he said.

Mitchell plans to argue for Carlos’s permits to remain in the port of New Bedford, the largest seafood port in the United States.

The DOJ and the National Oceanic and Atmospheric Administration (NOAA) could substitute cash for the forfeiture of vessels by allowing Carlos to pay an equivalent amount of cash, attained through a sale of the vessel to a New Bedford buyer, instead of simply handing the vessels over to them to sell, Mitchell said.

Read the full story at Undercurrent News

Where does Rafael’s guilty plea leave Port of New Bedford?

April 3, 2017 — Carlos Rafael’s journey to Judge William Young’s Courtroom 18 in U.S. District Court began as an underage teenage fish cutter on the city’s docks.

Rafael personified the American Dream in climbing the economic ladder from immigrant with nothing to becoming the face of fishing in a port historically known for its harvest of the Atlantic Ocean.

On Thursday he wore the cloak of a criminal after he pleaded guilty to nearly 30 federal charges that included conspiracy, falsifying fishing quotas, false labeling and tax evasion.

It wasn’t necessarily a new look for the 65-year-old Rafael, who served six months in federal prison in 1988, but his focus after the plea agreement turned to the port that in many ways assembled the man who sat emotionless in the courtroom.

“I have a single goal,” Rafael said in a statement after his guilty plea. “To protect our employees and all of the people and businesses who rely on our companies from the consequences of my actions. I will do everything I can to make sure that the Port of New Bedford remains America’s leading fishing port.”

The Port of New Bedford generates $9.8 billion in total economic value, according to the city’s Harbor Development Commission. It represents 2 percent of Massachusetts’ gross domestic product. The stalwart of this industry could be facing more than six years of prison time after pleading guilty.

Rafael’s guilty plea puts his groundfish fishing vessels in jeopardy due to the possibility of forfeiting assets as part of the plea deal. According to the mayor’s office, Rafael owns about 80 percent of the groundfish permits in New Bedford. Groundfish accounts for about 10 percent of the port’s revenue. Even still, those close to the port say no one person can affect the reputation of the nation’s most successful port.

Read the full story at the New Bedford Standard-Times

Carlos Rafael’s guilty plea in federal court draws mixed reactions

March 31, 2017 — There was a mixture of emotions and reactions among members of the local fishing industry over the guilty plea Carlos that “The Codfather” Rafael entered in Federal Court Thursday. Some expressed a certain amount of sympathy for Rafael in the highly regulated business. Some didn’t.

This doesn’t come as a surprise,” said Mayor Jon Mitchell. Ever since Carlos’ arrest became public it was clear the government had him dead to rights.”

Mitchell, a former federal prosecutor, said that he thinks Rafael “is looking at three or four years in federal prison and to my mind he deserves it.”

“The more important question is what will happen to the permits. That determination has been left up to NOAA.”

Rafael’s fishing operation has continued under the permits, but it is possible the government will auction them off or send them out of the city in some other way, Mitchell said. He said he “pointedly” made that point with NOAA.

“The numerous people he employs shouldn’t have to suffer because of his dishonesty.”

Jim Kendall, president of New Bedford Seafood Consulting, had the same concern about the permits. He noted that other boat owners have been stripped of their permits. “But I am not sure that it means anything for us,” he said.

“I’m hoping that whatever the decision is that it doesn’t harm the port or the fishermen here. I am concerned about the impact.

Joann Field of Acushnet said, “If he is taking responsibility, that’s a good thing.”

But her husband Roland wondered aloud how much the strain of government monitoring and enforcement pushed him in the direction he went.

Read the full story at The New Bedford Standard-Times

Fishing mogul Carlos Rafael pleads guilty to conspiracy, other charges

March 31, 2017 — The following is an excerpt from a story published yesterday by the New Bedford Standard-Times:

Carlos Rafael walked into Courtroom 18 on the fifth floor three minutes prior to his scheduled 2:30 p.m. plea hearing in front of Judge William G. Young at U.S. District Court on Thursday.

An hour and 15 minutes later he stood and faced the court clerk and uttered “Guilty,” when she informed him the U.S. Attorney has charged him with 28 counts, including falsifying fishing quotas, false labeling, conspiracy and tax evasion.

“Today I pled guilty to the charges facing me,” Rafael said in a statement released by his lawyers. “I am not proud of the things I did that brought me here, but admitting them is the right thing to do, and I am prepared to accept the consequences of my actions.”

A sentencing hearing was set for June 27 at 2 p.m., when the New Bedford fishing tycoon could face as much as 76 months in prison, although Assistant U.S. Attorney Andrew Lelling recommended 46 months.

“Mr. Rafael’s scheme not only compromised delicate fish populations, but also profited on the backs of his hard-working crew,” Acting United States Attorney William D. Weinreb said in a statement.

“Mr. Rafael knew he was breaking the law by falsifying records, evading taxes and smuggling ill-gotten profits to Portugal. Without Mr. Rafael and his scheme, New England fishermen who work hard for honest pay can now enjoy a more level playing field.”

Read the full story at the New Bedford Standard-Times

US fishing magnate dubbed ‘The Codfather’ set to change plea

March 30, 2017 — A leading U.S. fishing magnate known as “The Codfather” is scheduled to plead guilty to federal charges of evading fishing quotas and smuggling money to Portugal.

The U.S. attorney’s office says Carlos Rafael has a change of plea hearing scheduled for Thursday.

Rafael is the owner of one of the nation’s largest commercial fishing operations. It includes a fleet of more than 30 vessels, 44 commercial fishing permits and the Carlos Seafood business in New Bedford.

Federal authorities say Rafael falsely claimed his vessels caught haddock or pollock, when they had actually caught other species subject to stricter quotas. He then sold the fish for cash, some of which was smuggled overseas.

He was indicted on 27 counts last May and is free on $2 million bond.

Read the full story from the Associated Press at Boston.com

Statement from Carlos Rafael on Today’s Court Proceedings

WASHINGTON (Saving Seafood) — March 30, 2017 – Mr. Carlos Rafael is scheduled to appear in Federal Court today at 2:30pm where he is expected to plead guilty to certain fishing-related charges. The following statement from Mr. Rafael was released by his attorneys at Collora LLP in Boston.

“There have been a number of stories written about this case and about me. Some of the things that have been written are true, some are not. Here is the truth. Today I pled guilty to the charges facing me. I am not proud of the things I did that brought me here, but admitting them is the right thing to do, and I am prepared to accept the consequences of my actions.

I started in this industry cutting fish when I was 16 years old, and it has been an honor to work with the people of the Port of New Bedford. Looking back, I’m most proud of the hundreds of jobs our businesses created, and the opportunities they created for families. Today, I have a single goal. To protect our employees and all of the people and businesses who rely on our companies from the consequences of my actions. I will do everything I can to make sure that the Port of New Bedford remains America’s leading fishing port.”

Contact:
Sandie Thompson
Collora LLP
(617) 531-2652

New indictment adds tax evasion to charges against Carlos Rafael

March 24, 2017 — The U.S. attorney included a new charge of tax evasion against Carlos Rafael as part of a “superseding” indictment released by its office last week.

The charge of tax evasion brought the total number of counts against the New Bedford fishing tycoon to 28. The others also include one count of conspiracy, 25 counts of lying to federal fishing regulators and one count of bulk cash smuggling.

According to the U.S. attorney, Rafael is expected to plead guilty to tax evasion as part of his plea agreement, which was announced earlier this month. The U.S. attorney Massachusetts provided no other information regarding the deal except that Rafael would plead guilty to evading fishing quotas and smuggling profits to Portugal in addition to tax evasion.

Rafael is scheduled in U.S. District Court in Boston on March 30 at 2:30 p.m.

The updated indictment states that from November 2014 to about October of 2015 Rafael failed to pay taxes in the sum of $108,929. It also included two new paragraphs regarding the general allegations toward Rafael.

The U.S. attorney alleges that Rafael deposited cash into accounts in Portugal to avoid paying taxes on the money. According to the indictment, Rafael told a bookkeeper for Carlos Seafood Inc. not to enter the cash payments into the company’s record-keeping system.

The U.S. attorney also alleges Rafael omitted $267,061 in reportable cash income in 2014.

Rafael spent six months in federal prison after being convicted of tax evasion in the 1980s.

Read the full story at the New Bedford Standard-Times

Carlos Rafael plea hearing postponed to March 30

March 16, 2017 — Carlos Rafael’s court date where the fishing tycoon is scheduled to plead guilty to charges in connection with evading fishing quotas and smuggling profits to Portugal has been postponed, the U.S. Attorney’s Office in Massachusetts said on Wednesday.

Rafael will appear in U.S. District Court in Boston on March 30 at 2:30 p.m. He was originally scheduled to appear in court as part of the settlement with the government on Thursday.

The U.S. Attorney’s office had no further details regarding the plea deal.

Often referred to as the “Codfather” as the owner of 36 boats, Rafael faced one count of conspiracy, 25 counts of lying to federal fishing regulators and one count of bulk cash smuggling.

Read the full story at the New Bedford Standard-Times