Whaling City Seafood Display Auction Archives

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

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

Massachusetts: New Bedford, Carlos Rafael pop up on Netflix show

January 16, 2018 — The Netflix show “Rotten” is a six-part docuseries that focuses on where food comes from, including cod.

In the series, which debuted Jan. 5, each episode focuses on a different food: honey, peanuts, garlic, chicken, milk and cod.

“As the global fish supply dwindles, the industry faces crises on all sides — including crooked moguls, dubious imports and divisive regulations,” according to the description of Episode 6 “Cod Is Dead.”

Read the full story and watch the series trailer at the New Bedford Standard-Times

MASSACHUSETTS: Canastra Brothers Offering $93 Million for Carlos Rafael’s Fishing Fleet

October 5, 2017 — Last week in court, it was publicly revealed that the potential buyers of Carlos Rafael’s fishing fleet are brothers Richard and Ray Canastra, owners of the Whaling City Seafood Display Auction in New Bedford, Massachusetts. This morning, Richard Canastra appeared on WBSM to confirm that the brothers have entered into a memorandum of agreement with Mr. Rafael to buy his fleet for $93 million.

“We wanted to keep everything in New Bedford,” Mr. Canastra said. “Ray and I had to make a decision – do we want to do this? I’m 56 years old, Ray is 60 years old. It’s a big task…at this later stage in our life. We believe that it’s the right thing to do for New Bedford. The waterfront has been good for us since 1986, [we] started the auction in ’94, and we’d hate to see the industry collapse because of what Carlos did in the past.”

When asked about those who have raised questions about the relationship between the Canastras and Mr. Rafael, Mr. Canastra said, “I look at it this way. We are the largest fish auction in the United States, and Carlos Rafael is the largest boat owner on the East Coast.” He said that although the Canastras and Mr. Rafael are friends, the negotiations became tense, and there was a period where tensions ran so high that the brothers and Mr. Rafael did not speak for three weeks.

Mr. Canastra also discussed competition with NGOs over the permits. “Our biggest competitors here are the NGOs and people up in Maine who are in cahoots with the NGOs,” he said. He described a situation in 2015 in which Mr. Rafael purchased quota from a Maine seller at fair market value when no one else would. “There was only one offer up in Maine and that was from the NGO, and I believe it was Nature Conservancy. So do you want to see those permits go to an NGO, where it can be put on a shelf or the permit could be leased out to their favorites? That’s been happening since sectors. It was a fair deal, and everyone wants it back now.”

“There are groups up in Maine that believe that these permits should be dissolved back into the industry, or even given back to them,” Mr. Canastra added. “In reality, if they dissolve all these permits into the industry, every permit holder would receive anywhere between 200 to 300 pounds of each species, so it would not really gain anything for that permit holder but it would destroy New Bedford.”

The following is excerpted from WBSM’s exclusive article on the potential transaction:

NEW BEDFORD, Mass. — One of the owners of the Whaling City Seafood Display Auction in New Bedford is shedding more light on a proposed deal to buy [Carlos Rafael’s] fishing fleet.

Carlos Rafael has been sentenced to 46 months in prison for his illegal fishing scheme, and cannot be involved in the fishing industry during that time and three years after his release.

In an exclusive interview with WBSM’s Phil Paleologos, Richard Canastra confirms he and his brother, Ray, have entered into a memorandum of agreement with Rafael to buy his business, Carlos Seafood, Inc, for $93 million.

“We know boats. We know the business. We’re doing this to keep this in New Bedford,” said Canastra. “My plan is to get out, hopefully, in ten years when things lighten up and it can be sold properly instead of this fire sale where people want everything for nothing.”

Read and watch the full story at WBSM

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

Rafael, potential buyer of fleet enter into Memorandum of Agreement

September 22, 2017 — NEW BEDFORD, Mass. — Carlos Rafael and a potential purchaser have entered into a Memorandum of Agreement regarding a sale of his vessels and accompanying permits that would remove the fishing mogul from the industry, according to court documents filed Wednesday.

Rafael’s sentencing memorandum reiterated the potential deal that was first publicly revealed in July. It also stated that NOAA and the U.S. Attorney’s Office haven’t taken a final position on the proposed sale and didn’t identify the buyer.

The Government’s Sentencing Memorandum, also filed on Wednesday, stated that the sale of Rafael’s entire fleet could be worth $70 million to $80 million to a local buyer.

On Monday, Rafael’s attorney’s filed an Opposition of Forfeiture, which stated a deal for 13 groundfish permits would be valued at $16.3 million. It made no reference, though, to the value of the entire fleet, but still suggested a deal would remove Rafael from the industry.

There are two prominent business in New Bedford that possess the means to inherit the permits: Whaling City Seafood Display Auction and Eastern Fisheries. Neither returned requests for comment.

It all stems from Rafael pleading guilty to falsifying fishing quota and smuggling cash in March. As part of the agreement, 13 vessels and the permits associated are subject of forfeiture.

Read the full story at the New Bedford Standard-Times

Local buyer for Carlos Rafael’s fishing permits, court documents say

September 21, 2017 — NEW BEDFORD, Mass. — Documents filed in federal court Monday reveal that a local buyer has been identified for Carlos Rafael’s fishing permits. The potential deal would remove Rafael from commercial fishing, according to a 14-page document filed by Rafael’s attorneys opposing federal forfeiture.

The single buyer is identified as having “a spotless compliance record” to purchase at least the 13 groundfish permits and vessels. The document is unclear if Rafael’s additional permits and vessels, estimated to be at least 35 in total, are included in negotiations. However, it states, “Rafael has taken substantial steps to voluntarily remove himself from the federal fishery entirely in a manner that does not jeopardize New Bedford’s economy.”

The document appraises the 13 groundfish permits, related to Rafael’s illegal reporting guilty plea in March, as worth more than $30 million. Rafael’s ownership, excluding other business partners’ shares, amounts to more than $19 million. The purchase price for the identified buyer is $16,333,558, according to the document.

In contacting a number of sources within the fishing industry Wednesday, The Standard-Times found no evidence that this deal had been completed. Rafael is scheduled to appear Monday and Tuesday for sentencing in U.S. District Court in Boston.

Two prominent businesses in New Bedford possess the means to acquire the permits based on financial means and ability to operate a fleet of that size: Whaling City Seafood Display Auction and Eastern Fisheries. Neither returned requests for comment.

Read the full story at the New Bedford Standard-Times

MASSACHUSETTS: The plan to combine fishing, tourism, and the waterfront to invigorate a New England city

November 17, 2016 — Working waterfronts along the Eastern seaboard are slowly dying out. As rising sea temperatures result in different fish migration patterns and locations, fishermen are struggling to adapt and keep up. The phenomenon is believed by many scientists to be due to climate change—the effects of which are most prominently evidenced on the East Coast according to a 2009 article, “Progress in Oceanography,” which found that waters in the northeast saw their temperatures rise at twice the global rate between 1982 and 2006.

The port of New Bedford, Massachusetts, however, has remained strong. Since 1999 it has been the nation’s number one fishing port, netting 40 million pounds of seafood valued at more than $329 million in 2014, generating economic activity surpassing $1 billion.

Sustaining this economic fruition is a different matter, though. Boston-based consultant Sasaki Associates has produced a study of New Bedford’s waterfront, a scheme that seeks to further the area’s economic longevity.

Proposals vary from advocating investment in particular areas and buildings to introducing other industries to the area. An example of the latter can be seen in the suggestion to enhance access—both public and private—to the Whaling City Seafood Display Auction where national and international buyers bid on fish. “A direct connection between fishing boats and the seafood auctions would improve the efficiency of getting fish to the consumer and make the process a transparent experience for the public,” reported Sasaki. Additionally, this would allow tourists to witness fish trading, something that is popular in, London, Sydney, Tokyo, and even, as Sasaki points out, Chatham, Massachusetts.

Read the full story at the Arch Paper

New Bedford Standard-Times: Cooperation pushes fishery advocacy to next level

June 6, 2016 — Last Thursday, House Natural Resources Committee Chair Rep. Rob Bishop (R-UT) joined Rep. Bill Keating (D-MA) and Mayor Jon Mitchell in New Bedford, Mass., to discuss issues relevant to the local seafood and fishing industries. The National Coalition for Fishing Communities (NCFC), which helped organize Rep. Bishop’s visit, hopes to continue working with the Natural Resources Committee and its staff to arrange bipartisan visits to all the seaports where NCFC members conduct their business.The following editorial about Rep. Bishop and Rep. Keating’s visit to New Bedford was published yesterday by the New Bedford Standard-Times:

Geography is both a blessing and a curse for commercial fishermen in the U.S. They have access to rich fishing grounds along thousands of miles of seacoast, but the distance between the fish they catch and the American consumer prevents a full understanding of the lives of fishing communities.

The visit to New Bedford’s waterfront Thursday by the chairman of the House Committee on Natural Resources, U.S. Rep. Rob Bishop, R-Utah, was more than a step in the right direction, it’s proof of treading the right path. The committee is responsible for ocean issues, including the current reauthorization of the Magnuson-Stevens Fishery Conservation and Management Act.

City support

The National Coalition for Fishing Communities was formed with city-directed grant money, and the Harbor Development Commission’s membership in the coalition emphatically states the city’s commitment and leadership. Their advocacy is often first to be heard, which means they’ll wait longest for remedy.

Advocacy

Saving Seafood’s years of advocacy in Washington on behalf of the Port of New Bedford and the East Coast has enabled the creation of the coalition. More than two dozen municipalities, businesses, and associations from around the country are represented: Alaska, Hawaii, West Coast, Gulf Coast and East coast. Members from Rhode Island, Long Island, New Jersey and around New England had their voices heard by the chairman on Thursday. An industry with such diversity had its voice heard on national issues and discovered new resources to address local issues more effectively.

The coalition’s website says: “We are committed to the tenets of National Standard Eight of the Magnuson-Stevens Act,” which is summed up in the balancing of the sustainability of both the ocean environment and the fishing community. For the record, The Standard-Times is similarly committed.

Good government

There seems little good to be done recounting the sins of either fishermen or government agents, but it is instructive when considering the case of an alternative for the monument designation proposed to protect corals in fishing grounds south of Cape Cod. Industry representatives cooperated at the White House Executive Office level, the Council on Environmental Quality, to produce an alternative that satisfies preservation and fishing goals alike.

In addition, the CEQ’s counsel can influence how frequently deference might be claimed by regulators, nudging court decisions more in line with the statutory balancing act of National Standard 8.

The chairman’s visit to New Bedford is a recognition that there remain injustices and inequities in the administration of Magnuson-Stevens; reaching out leads to better decisions.

Bipartisanship

Chairman Bishop’s congressional district in Utah borders on the Great Salt Lake, which sees millions of pounds of brine shrimp eggs landed each year. The industry can move more than a billion dollars through the economy annually, but its fortunes are fickle. The lake’s changing salinity affects shrimp reproduction, which can shut the season down if severe enough.

The chairman may have seen the workers in his district reflected in those at the display auction in New Bedford on Thursday, icing down Gulf of Maine flounder. Or at Northern Wind, where workers use machines to process vast amounts of scallops, the port’s signature harvest.

The only “politics” surrounding the chairman’s visit was of the traditional variety: How can we get the people’s business done? New Bedford’s Democratic U.S. Rep. Bill Keating could readily see eye to eye on the issues of fishing communities as they toured the New Bedford waterfront together.

Managing ocean resources may never be easy, but cooperation is what gets the people’s business done, moving toward National Standard 8’s goal of a sustainable balance between humanity and the environment.

Read the editorial at the New Bedford Standard-Times

Federal Legislators Tour New Bedford Fisheries, Discuss At-Sea Monitoring

Rep. Bill Keating (left) and Rep. Rob Bishop (right) discuss at-sea monitoring in a visit to New Bedford on Thursday, June 2. (Photo: House Natural Resources Committee)

June 3, 2016 — The following is excerpted from a story published yesterday by WBSM:

The City of New Bedford welcomed a possible congressional ally for the fishing industry Thursday to tour fisheries along the harbor.

Congressman Rob Bishop (R-UT) took a tour of the Whaling City Seafood Auction and seafood processing plant Northern Wind along with Congressman Bill Keating (D-MA), New Bedford Mayor Jon Mitchell and representatives of the local seafood industry.

Elected officials and members of the fishing industry have expressed grave concern over the federally mandated costs by NOAA for at-sea monitors aboard select fishing vessels across the east coast.

Keating said it’s difficult for legislators outside maritime districts to fully understand the impact of the at-sea monitoring costs.

“It creates a greater challenge to get the understanding why this is so important,” said Keating. “The cost of monitoring $800 a day could be enough to be the difference between success and failure of a small business.”

Read the full story at WBSM