Scheme involved selling unreported Atlantic herring and falsifying fishing, tax records Date: July 11, 2024 Contact: newsroom@ci.irs.gov Eight men from Maine and one from New Hampshire – comprised of the owner, captains, and crew members of a commercial fishing vessel, the Western Sea, and owners of local Maine fisheries – have been sentenced for knowingly subverting commercial fishing reporting requirements. The final six sentences in the complex case were handed down this week by U.S. District Judge Jon D. Levy in U.S. District Court in Portland. The Western Sea is a fishing vessel that operated out of Rockland and fished for Atlantic herring. Atlantic herring is the primary bait fish for Maine’s lobster industry. Operators of fishing vessels in the Atlantic herring fishery must comply with restrictions on fishing areas, seasonal access, gear usage, and limits on the quantity or weight of fish caught. To ensure a sustainable fishery for a particular species, the National Oceanic and Atmospheric Administration (NOAA) has authority to set quotas and catch limits for commercial fishing vessels, and the vessels must complete a Fishing Vessel Trip Report (FVTR) at the end of each fishing trip reporting all species caught, the weight of each catch, and the dealers to whom the catch is sold. According to court records, from June 2016 through September 2019, members of the Western Sea crew conspired to submit false FVTRs to NOAA. The Western Sea, acting through its owner, captains, and crew, sold Atlantic herring to purchasers who paid the crew directly via check or cash, including to some purchasers that were not federally permitted dealers of Atlantic herring. Members of the crew received shares of this money at the end of fishing weeks. Some sales were of unreported Atlantic herring, including when the vessel landed more than the quantity of herring allowed under weekly catch limits. False FVTRs were submitted to NOAA to conceal the conduct and Western Sea, Inc. issued inaccurate 1099 forms to crew members that failed to report all income. Sentenced this week: Glenn Robbins (Eliot; Owner Western Sea, Inc. & Captain R. Herring; Captain of the Western Sea) Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes. Sentenced on 07/11/24 to 2 years of probation, $25,000 fine. Western Sea, Inc. (Eliot) Pleaded guilty on 03/11/24 to falsification of records. Sentenced on 07/11/24 to 2 years of probation, $175,000 fine. Jason Parent (Owls Head; Crew member) Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes. Sentenced on 07/10/24 to 2 years of probation, $2,000 fine, 50 hours of community service, restitution of $28,685.58. Stephen Little (Warren; Crew member) Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes. Sentenced on 07/10/24 to 2 years of probation, $42,834.93 restitution. Neil Herrick (Rockland; Crew member) Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes. Sentenced on 07/10/24 to 2 years of probation, 50 hours of community service, $32,889.43 restitution. Ethan Chase (Portsmouth, NH; Part-time captain of the Western Sea) Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes. Sentenced on 07/09/24 to 2 years of probation, 50 hours of community service, $2,000 fine, $39,289.39 restitution. Previously sentenced: Glenn Lawrence (Owls Head; Owner of fishing/transport vessel the Double Eagle) Pleaded guilty on 11/07/23 to unlawful purchase of fish in interstate commerce, and aiding and abetting (Lacey Act Violation). Sentenced on 05/03/24 to 2 years of probation, $25,000 fine, 50 hours community service. Duston Reed (Waldoboro; Owner New Moon Fisheries, Inc.) Pleaded guilty on 12/27/23 to unlawful purchase of fish in interstate commerce, and aiding and abetting (Lacey Act Violation). Sentenced on 04/29/24 to 2 years of probation, $25,000 fine, 100 hours community service. New Moon Fisheries, Inc. (Friendship) Pleaded guilty on 12/27/23 to unlawful purchase of fish in interstate commerce, and aiding and abetting (Lacey Act Violation). Sentenced on 04/29/24 to 2 years of probation, $15,000 fine. Samuel Olsen (Cushing; Owner Sam’s Seafood LLC) Pleaded guilty on 10/17/23 to unlawful purchase of fish in interstate commerce, and aiding and abetting (Lacey Act Violation). Sentenced on 04/12/24 to 1 year of probation, $9,500 fine, 50 hours community service. Andrew Banow (Rockport; Crew member) Pleaded guilty on 03/14/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes. Sentenced on 04/12/24 to 1 year of probation, $1,000 fine, $20,177 restitution. “Atlantic herring is a vital resource in Maine, particularly to the thousands of people involved in the lobster industry in the state. Led by Glenn Robbins and Western Sea, the defendants in this case subverted regulations for the sole purpose of lining their own wallets – regulations that are in place to ensure Atlantic herring are not overfished and are available for future generations of fishermen and safeguard the viability of the marine ecosystem,” said U.S. Attorney Darcie N. McElwee. “I commend the investigators on this case, including those from NOAA, for their efforts to ensure the sustainable management of an industry so vital to all that is Maine.” “The sentencing of all involved with the Western Sea investigations sends a powerful message to the commercial fishing industry,” said IRS CI Special Agent in Charge Harry T. Chavis Jr. “This investigation demonstrates IRS-CI’s commitment to investigating and prosecuting all those that violate the U.S. Tax Code, no matter who they are.” “Protecting our nation's honest fishermen is, and will always be, a top priority for NOAA. Egregious acts that undermine the sustainable management of our fisheries resources and steal from those in the industry who follow the rules will not be tolerated,” said Michael Henry, Assistant Director for NOAA’s Office of Law Enforcement's Northeast Division. IRS – Criminal Investigation, NOAA, and the Maine Marine Patrol investigated the case.
