Article published Aug 24, 2002
Telegraph Journal, NBBlack market lobster activity huge, complex, says official
Behind the notoriety of conflict, several departments of the federal
government are probing a multimillion-dollar web of illegal harvesting, selling and processing in
the Maritimes' beleaguered lobster fishery.
Allegations involving the sale and possession of native "food-fishery"
lobsters, tax evasion and, in some cases, obstruction of justice frame a series of ongoing
investigations, including one that targets a potential $200-million black market in Nova Scotia and New Brunswick.
With several matters before the courts - and numerous other files
outstanding - at least one federal government official is calling the debacle "huge."
Jacinthe LeBlanc, a spokeswoman with the Canada Customs and Revenue
Agency in New Brunswick, says federal officials in the province are in the preliminary
stages of an investigation into the underground economy linking individual fishermen and fish buyers.
"We're doing compliance audits and, through that, if we find evidence
that there is major fraud involved, then we'll go to the special investigation stage, which
eventually leads to court action.
"Historically, the problem with the industry is they don't have the
proper documentation, which makes it more difficult (for investigators) to come to some type of
conclusion," Ms. LeBlanc said. "You have to check into more areas to get the information you need to substantiate
your conclusion."
She said committing to a time frame on the black-market investigation in
New Brunswick is difficult because of its complexity, adding it could be three to six months before
charges are laid. Ms. LeBlanc would not detail the scope of the investigation in New Brunswick
but confirmed the agency's three tax services offices in Saint John, Moncton and Bathurst are
co-ordinating efforts on the fishing industry to see "if the problem's as prevalent as it is in Nova Scotia."
Federal officials in that province have already charged five individuals
with counts that span conspiring to evade taxes, making false book entries, providing
deceptive records and statements and obstructing justice. The agency is looking into a potential black
market spanning only a period from 1996 to 1999.
Leslie Cheeseman, a spokeswoman with Canada Customs in Nova Scotia says
unreported lobster transactions are believed to be the equivalent of 25 per cent of
reported activity.
In New Brunswick, it's anticipated black-market activity is equal to 15
to 20 per cent of reported sales.
"It's just beginning," Ms. Cheeseman said.
"We imagine the number of people and companies we'll be investigating
could reach into the hundreds. The investigation is huge."
Independent of the Canada Customs probe in New Brunswick, the Department
of Fisheries and Oceans (DFO) is also investigating allegations surrounding the sale and
possession of lobster trapped under communal or "food-fishery" licences issued to First Nations
communities. The department announced last January it was looking into reports of New Brunswick fish
processors buying illegal lobster from Mi'kmaq in the province.
Charges against the St. Thomas-based Francois Cormier Fish Market were
dismissed in a Richibucto court Aug. 7.
However, Bob Allain, DFO regional director, said the federal Department
of Justice is considering a possible appeal of that ruling. He added the DFO has a special team of
officers in eastern New Brunswick that continues to monitor unauthorized harvesting and sales.
"Without getting into details, the team has been active this year and
they are pursuing some investigations," Mr. Allain said.
In addition to any sentence courts might hand down, the provincial government has the right
to suspend or revoke the licences of any processors convicted of processing illegal fish under federal law.