The “Codfather” Indicted in New Bedford Sting

Locally known as the Codfather, Carlos Rafael, owner of Carlos Seafood, one of the Northeast’s largest commercial fishing businesses, was arrested in February by federal officials in an alleged scheme to avoid the federal groundfish quota system. Owner of 40 commercial fishing vessels in New Bedford and Gloucester, Rafael was busted in a sting, which included federal agents posing as Russian mobsters communicating in faux Russian accents, according to various news outlets.

The charges include falsifying federal catch documents, including mislabeling vessel trip reports to avoid reaching quotas on higher value species. The more valuable fish were allegedly bought by his company at the lower haddock price and sold to New York buyers at their higher market prices.

The alleged scheme began unraveling in June 2015 when he was approached by the federal agents posing as Russians interested in buying Rafael’s business after having advertised his company for sale. According to reports, Rafael had made it known that he was dissatisfied with the total quota federal regulators were allowing for a range of groundfish.

When the “Russians” responding to the ad asked him to explain the difference between the dollar amount he valued his company at and what his tax statements said it was worth, about 8 times lower, he allegedly told them he was falsifying federal fishing documents and arranging it with the captains of his boats, according to reports.

After 5 days in custody, Rafael posted a $1 million bond. He faces up to 20 years in prison if convicted.