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

2. 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

3. 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.

4. 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

5. 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

6. 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.

7. 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)

8. 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.

9. 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

10. Retail Value

11. 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)

12. 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.

13. 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.

14. Questions?