Saving Seafood

MASSACHUSETTS: Gloucester hooked to New Bedford fish fraud case?

February 29, 2016 — GLOUCESTER — The stunning arrest of New Bedford fishing mogul Carlos Rafael last Friday on federal conspiracy and fraud charges may have a Gloucester connection.

The affidavit submitted in support of the federal criminal complaint against Rafael and bookkeeper Debra Messier by Internal Revenue Service Special Agent Ronald Mullett, one of the undercover operatives involved in stinging Rafael, includes an oblique reference to Gloucester.

The reference takes place in a quote attributed to a New York man that federal investigators allege to be the wholesale buyer of Rafael’s illicit, off-the-books fish. The man initially is referred to only as “Michael,” but later in the affidavit also is called “Perretti.”

During the discussion, according to the affidavit, the talk turned to laundering money.

Gloucester talk

“During the meeting, the UCs (undercover agents) also told Perretti that they had cash on hand from an insurance fraud they perpetuated,” according to the affidavit. “Perretti explained that he could launder money from the UCs, suggesting he could reach out to individuals he used to charge 15 percent in the past.”

Read the full story at Salem State News

MASSACHUSETTS: New Bedford fish fraud case underscores need for greater NOAA monitoring

February 29, 2016 — BOSTON — Fraud charges against the owner of a prominent New Bedford fishing company highlight the need for greater enforcement of fishery regulations, according to an environmental group.

Carlos Rafael, owner of 40 fishing vessels in New Bedford and Gloucester as well as Carlos Seafood, was arrested on Friday on charges his organization lied about the species of fish landed, and he smuggled cash out of the country.

Among other allegations, federal authorities said Rafael told undercover agents he had assistance from a local law enforcement officer who helped him move cash through the airport to Portugal.

Accused of circumventing federal quotas by labeling dabs and other fish as haddock – where Rafael said he has a 15-million-pound quota – Rafael regularly shipped the mislabeled fish to a buyer in New York City, according to federal officials.

“Because it is nearly impossible to monitor what fishing vessels do out at sea, commercial fishing vessels are required to comply with various reporting requirement,” the 18-page affidavit by Internal Revenue Service Special Agent Ronald Mullett states.

Rafael told undercover agents posing as Russian mobsters interested in buying the business that co-defendant Debra Messier had “been in the life” with him for 30 years and everyone in the company “knows the scheme,” according to the complaint.

According to the affidavit in support of a criminal complaint Rafael was previously convicted of tax evasion in the 1980s, acquitted of price-fixing in 1994 and convicted of making false statements on fishing vessels’ landing slips in 2000. Messier is his bookkeeper and both live in Dartmouth, according to the U.S. Attorney’s Office. According to the Boston Globe, Rafael was held without bail pending a detention hearing on Wednesday and Messier was released from custody on $10,000 unsecured bond.

Read the full story at Taunton Daily Gazette

MASSACHUSETTS: Federal agents raid New Bedford seafood wholesaler

February 26, 2016 — Federal agents swarmed Carlos Seafood in New Bedford Friday morning arresting the owner Carlos Rafael and his book keeper Debra Messier.

The two are accusing of selling fish off the books. They are facing federal charges of conspiracy and submitting falsified records to the federal government to evade federal fishing quotas.

This isn’t the first time Rafael has been in trouble. In fact, over the last 20 years he’s been the subject of multiple federal investigations.

Rafael, sometimes referred to as the “Cod Father,” owns 40 fishing vessels in New Bedford and Gloucester.

“My immediate concern is what’s going to happen next week and the week after to the fisherman who have to go out to sea and the livelihood of the folks who are in his processing plant,” said New Bedford Mayor Jon Mitchell.

A court affidavit reveals that undercover IRS agents first began their investigation into Rafael in May of 2015. The agents posed as a broker and Russian immigrants involved in crime. They told Rafael  they were interested in buying his business.

Read the full story at ABC News

View a PDF of the affidavit of agent Ronald Mullet in support of a criminal complaint charging Carlos Raphael

MASSACHUSETTS: Carlos A. Rafael held without bail

February 26, 2016 — BOSTON — Carlos A. Rafael was held without bail Friday afternoon after appearing in U.S. District Court on charges of conspiracy and submitting falsified records to the federal government.

Magistrate Judge David H. Hennessy ordered Rafael, 64, held until a preliminary and detention hearing is held in the federal court in Worcester on Wednesday, March 2 at 1 p.m.Rafael’s bookkeeper and co-defendant, Debra Messier of Dartmouth, faces the same charges but was released on a $10,000 unsecured bond.

The two appeared in the Boston court Friday afternoon after federal authorities, including the NOAA Office of Law Enforcement and the Internal Revenue Service, executed two search warrants and raided the headquarters of Rafael’s groundfishing and scallop business on the city’s South End waterfront Friday morning.

Federal prosecutors charge that for years, Rafael, with the help of Messier, lied to federal authorities about the quantity and species of fish his large New Bedford fleet caught, in order to evade federal groundfishing quotas, according to the criminal complaint filed by the IRS. After submitting false records to federal regulators, Rafael then sold the fish to a business in New York City in exchange for bags of cash, the Office of U.S. Attorney Carmen M. Ortiz charges.

Assistant U.S. Attorney Andrew E. Lelling argued Rafael posed a flight risk.

Read the full story at the New Bedford Standard-Times

View a PDF of the affidavit of agent Ronald Mullet in support of a criminal complaint charging Carlos Raphael

MASSACHUSETTS: Excerpts from case against Carlos Rafael

February 26, 2016 — “He [Michael] buys a lot of fish. You can become a laundromat. You’ll never find a better laundromat than this mother….” — Carlos Rafael.

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“I could have to regret this to you [sic], because I don’t know you. You could be the IRS in here. This could be a cluster-f…. So I’m trusting you. The only thing is, I open myself because both of you is Russians and I don’t think they would have two Russians [posing as agents]. F… me – that would be some bad luck!” — Carlos Rafael

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“Rafael said that every Friday or Saturday, he works with an employee, later identified as Debra Messier, who is responsible for preparing the reports. If Rafael’s boats catch fish in excess of legal quotas, he tells Messier to change the description on the report to that of another species for which he had remaining quota, or to one for which there were no limitations at all.”

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Rafael told the UCs (undercover agents) that Michael delivers cash to Rafael in advance of fish shipments. Rafael then sends fish to Michael, in New York, in varying increments over a six-month period until the advanced payment is worked off. Rafael sends the fish to Michael by truck, after which Rafael marks a journal detailing the value of the fish shipped. Rafael reduces the balance owed to Michael after each shipment until the cash advance is fully repaid.

Read the full story at the New Bedford Standard-Times

View a PDF of the affidavit of agent Ronald Mullet in support of a criminal complaint charging Carlos Raphael