Massachusetts Fisherman Pleads Guilty to Fraudulent Fishing Scheme

BOSTON – Carlos Rafael, 65, owner of one of the largest commercial fishing businesses in the United States, has pleaded guilty to a massive fraud scheme that involved falsifying records and smuggling proceeds abroad.

Rafael, who owns Carlos Seafood, Inc., admitted to conspiring to commit offenses against the United States, false labeling and fish identification, falsifying federal records, bulk cash smuggling, and tax evasion. The fraudulent activities resulted in significant damage to fish populations and violated the rights of honest fishermen.

“Mr. Rafael’s scheme not only compromised delicate fish populations, but also profited on the backs of his hard-working crews,” said Acting United States Attorney William D. Weinreb. “Without Mr. Rafael and his scheme, New England fishermen who work hard for honest pay can now enjoy a more level playing field.”

Rafael misreported to the National Oceanic and Atmospheric Administration (NOAA) approximately 782,812 pounds of fish, telling NOAA that the fish was haddock or another abundant species when in fact it was cod, sole, or other species subject to strict quotas. He then sold much of the fish to a wholesale business in New York City for cash.

“The fraud perpetrated by Mr. Rafael was motivated by greed, at the expense of the delicate ecosystem of the North Atlantic ocean,” said Special Agent in Charge Joel Garland, IRS Criminal Investigation. “I commend the entire investigative team for their incredibly hard work in exposing this massive financial and natural resource fraud.”

The charges stemmed from an undercover investigation where federal agents posed as organized crime figures interested in buying Carlos Seafood. Rafael smuggled at least some of the cash to his native Portugal, hiding it there.

RELATED: Wilmington Man Pleads Guilty to Mosque Threats, Child Porn Charges