Special Agent Troy Audyatis Office of Law Enforcement Special Agent Troy Audyatis Global Fisheries Enforcement Training Workshop Bangkok, Thailand 18-22 February 2019

New Bedford, MA Highest valued U.S. fishing port for 17th straight year Fisherman landed 107 million pounds of seafood Valued at $327 million USD

Sector Management 2010: Sector management was implemented in the Northeastern United States. Sectors are a group of permit holders and vessels that contract with one another and who have been granted a total allowable catch (TAC) or collective allocation to harvest regulated multi-species.

Illegally Caught and Forfeited Who is Carlos Rafael? Most Influential Commercial Fisherman in New England At least 40 commercial fishing vessels with approximately 60 federal permits May control as much as 85% of all Northeast “ground fish” permits Responsible for hundreds of fishing related jobs in New Bedford, MA Public Personality Northeast Fishery Board Member Often quoted in industry and local media SEIZED 881 lb. Blue Fin Tuna Illegally Caught and Forfeited November 22, 2011

Illegally Caught and Forfeited Who is Carlos Rafael? Prior Criminal History 1987: Convicted for tax evasion (served 6 mos.) 1994: Price fixing (acquitted) 1999: False statements on federal forms (2 yrs. Probation) Multiple NOAA civil fisheries violations (>$190,000 in fines) Labor / U.S. Occupational Safety and Hazard Administration violations Numerous U.S. Department of Homeland Security immigration related enforcement actions SEIZED 881 lb. Blue Fin Tuna Illegally Caught and Forfeited November 22, 2011

Criminal Investigation: January 2015 King of New England groundfishing plans to sell his fleet out of New Bedford NEW BEDFORD - The biggest player in the New England groundfishing industry says he is cashing out of the business, selling off his scallopers and later his groundfish draggers, which count among the last in the country's top-grossing fishing port. Rafael refused to name the company but said his decision is in response to the state's cutting in half the amount of federal groundfish disaster relief aid he would get. The policy applies to all Massachusetts permit holders but will affect only Rafael because he's the only one with more qualifying permits than the 10.9 permit cap.

Investigative Team National Oceanic and Atmospheric Administration Office of Law Enforcement (NOAA OLE) Internal Revenue Service Criminal Investigation Service (IRS-CID) Federal Bureau of Investigation (FBI) Department of Homeland Security (DHS) Coast Guard Investigative Service (CGIS)

Multi-Agency Undercover Investigation IRS Agents with support of the other agencies posed as organized crime members interested in purchasing Rafael business. Conducted five (5) joint undercover operations from June 2015 through February 2016 with Rafael and his business associates. All agencies worked together focusing on their areas of expertise. Investigative Results Egregious fisheries violations to include false reporting over a several year period. Federal tax evasion. Public corruption, bulk cash smuggling and structuring.

Environmental Impact: Estimated Overages Carlos Seafood Species of Concern “Overcatch” Species 2015 2014 2013 2012 TOTAL Cod 80,731 - Sea Dabs 160,785 Grey Sole 144,180 72,804 25,948 20,919 263,851 Yellow Tail 46,840 141,025 73,305 16,274 277,444 Scallops 1,178 31,823 33,001 TOTAL: 432,536 215,007 131,076 37,193 815,812

Retail Value

Criminal Investigation Timeline February 2016: Search and arrest warrants May 2016: Rafael and sheriff’s deputy indicted Rafael indicted on twenty-five (25) counts of Lacey Act False Labeling and Identification (16USC§3372(d)), filing false reports (18USC§1519) and bulk cash smuggling (31USC§5332) Sheriff’s deputy indicted for bulk cash smuggling and structuring (31USC§5324)

Criminal Investigation Summary March 2017: Superseding indictment to included tax evasion (26USC§7201) July 2017: Sheriff deputy convicted of bulk cash smuggling and structuring the export of US currency September 2017: Rafael pleaded guilty to the superseding indictment October 2017: Sheriff deputy sentenced to one year and a day in federal prison November 2017: Rafael was sentenced to forty-six (46) months in federal prison, followed by three (3) years of probation and during such time he is barred from the fishing industry.

Criminal Investigation Summary Government sought forfeiture of thirteen (13) of Rafael’s vessels named in the indictment. After careful consideration, the court ruled and ordered the forfeiture of four (4) of Rafael’s vessels named in the indictment. November 2018: After an appeal, the court ruled for the forfeiture of two (2) of Rafael’s vessels named in the indictment and monetary payment in lieu of the other 2 vessels.

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