'The Codfather' Carlos Rafael Pleads Guilty

NEW BEDFORD, MA — Seafood mogul Carlos Rafael — renowned as "The Codfather" — on Thursday pleaded guilty to smuggling hundreds of thousands of dollars and violating federal fishing regulations.

Rafael ran New Bedford-based Carlos Seafood, one of the largest commercial fishing operations in the country. He operated a fleet of more than 30 boats.

Authorities said Rafael worked with Antonio Freitas, a Taunton resident and former deputy with the Bristol County Sheriff's Department. Fretias allegedly helped Rafael smuggle cash through Logan Airport.
Rafael ran a "long-running scheme involving submitting falsified records to the federal government to evade federal fishing quotas and then smuggling the profits to Portugal," said U.S. Attorney Carmen Ortiz in a statement.

“Mr. Rafael’s scheme not only compromised delicate fish populations, but also profited on the backs of his hard-working crews,” said Acting U.S. Attorney William Weinreb in a statement. “Mr. Rafael knew he was breaking the law by falsifying records, evading taxes and smuggling ill-gotten profits to Portugal. Without Mr. Rafael and his scheme, New England fishermen who work hard for honest pay can now enjoy a more level playing field.”

Added IRS Agent Joel Garland in a statement, “The fraud perpetrated by Mr. Rafael was motivated by greed, at the expense of the delicate ecosystem of the North Atlantic ocean."

The investigation included undercover agents posing as organized crime figures interested in buying Rafael's company.

Rafael underreported over 815,000 pounds of fish, according to prosecutors. He then sold the fish to a New York wholesaler for cash and said he earned hundreds of thousands of dollars in the scheme.

Rafael then used Freitas to funnel the profits to a bank in Portugal, Ortiz said. Freitas gained access to Logan when he was assigned there to assist in investigations and smuggled $17,500 by flying to Portugal, according to the indictment.

Rafael was charged with smuggling, conspiracy and 25 counts of falsifying records. Freitas was also charged with smuggling.

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