UPDATE: ‘Codfather’ to plead guilty in fish quota evasion case

March 09--The news Thursday that Carlos Rafael is taking a plea deal from federal prosecutors to avoid a federal trial will usher in the final act of the prosecution of the New Bedford fishing czar known as the "Codfather."

But the plea deal, at least for now, raises as many questions as it answers.

The U.S. Attorney's office in Boston on Thursday confirmed Rafael will avoid his federal trial by pleading guilty in U.S. District Court on March 16 to "evading fishing quotas and smuggling profits to Portugal."

However, federal prosecutors, who had filed a 27-count indictment against the New Bedford fishing magnate, offered no further details beyond what was contained in the tweet confirming the plea agreement.

And so, for now, the questions hover:

* Will the deal include prison time and is there an attached sentencing recommendation for the 64-year-old Rafael, who is accused of one count of conspiracy, 25 counts of lying to federal fishing regulators and one count of bulk smuggling?

* Under the terms of the deal, what happens to Rafael's vast holdings of more than 40 fishing vessels -- ported in New Bedford and Gloucester and all with multiple permits -- and his family's waterfront property and operations?

* And finally, will Rafael's deal with prosecutors mean we will never learn any details of the so-called "Gloucester connection"? One of Rafael's associates mentioned the tie to the federal undercover agents posing as Russian mobsters interested in buying his fishing businesses.

Gloucester tie-in?

Last March, an affidavit submitted by Internal Revenue Service Special Agent Ronald Mullett, one of the undercover operatives involved in stinging Rafael, included an oblique reference to Gloucester.

It was attributed to a New York man that federal investigators allege to be the wholesale buyer of Rafael's illicit, off-the-books fish. The man initially is referred to only as "Michael," but later in the affidavit also is called "Perretti."

In a meeting last January in a New York City restaurant between federal undercover agents -- posing as prospective buyers of Rafael's far-flung network of fishing businesses along the New Bedford waterfront -- and the man referred to as "Michael," the discussion turned to laundering money.

"During the meeting, the UCs (undercover agents) also told Perretti that they had cash on hand from an insurance fraud they perpetuated," according to the affidavit. "Perretti explained that he could launder money from the UCs, suggesting he could reach out to individuals he used to charge 15 percent in the past."

The undercover agents pressed Perretti on whether he could actually help them with laundering the cash.

"Perretti replied, 'Yeah, I could do that. I can do that. I can move some of that'," the affidavit stated. "When asked how much cash Perretti could 'move,' Perretti said, 'I don't know because I haven't reached out for a long time for anybody so now...it's always doable. I haven't reached out to anybody. Like I said, I'm only using him (Rafael) and the other guy in Gloucester."

Beyond Rafael's business holdings, that was the only reference to Gloucester in the affidavit or indictment. Prosecutors declined to even answer a request from the Gloucester Daily Times for clarification.

May trial for ex-deputy

Rafael was arrested last Feb. 26 following an investigation by the IRS and other law enforcement agencies.

Following two delays, Rafael was scheduled to go to trial March 20 in Boston on the 27-count indictment.

The indictment accused Rafael of falsely reporting to NOAA Fisheries the species of about 815,812 pounds of fish in the four-year span between 2012 and 2016 in an alleged scheme to circumvent federal fishing quotas and "profit from the sale of misreported fish."

He also is charged with one count of conspiracy and another count of bulk smuggling of cash out of the country with the assistance of Antonio M. Freitas, then a Bristol County sheriff's deputy.

Federal prosecutors did not indicate how Rafael's plea deal will impact the prosecution of Freitas, who is accused of helping Rafael smuggle money through Logan Airport and into bank accounts belonging to Rafael in Portugal.

Freitas' trial is scheduled to begin May 15.

In a January filing, Rafael's attorney William H. Kettlewell indicated to the court that Rafael was speaking with federal prosecutors about a potential deal that might resolve the matter before it ever made it to trial.

Kettlewell could not be immediately reached Thursday for comment.

Contact Sean Horgan at 978-675-2714, or shorgan@gloucestertimes.com. Follow him on Twitter at @SeanGDT

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