CONTACT:  Gordon Helm                FOR IMMEDIATE RELEASE
          Teri Frady                 8/12/96

JUDGE SUSPENDS FISH DEALER, FISHING VESSEL PERMITS IN NATIONS'S LARGEST FISHERY FRAUD CASE

Gloucester, Mass.--- An administrative law judge has granted the National Oceanic and Atmospheric Administration's request to suspend the fish dealer permit and five fishing vessel permits sought in a massive fraud case, pending final hearing. The ongoing case involves two Cape Cod businessmen, James G. and Peter Spalt; various corporations owned by the brothers; five of their commercial fishing vessels; and a dozen vessel captains.

"We believe this is the right decision at the right time," says Mitch MacDonald, a lead attorney in the government's case. "This decision puts intentional violators committing wide-scale illegal acts on notice that they will be removed from the fisheries."

The permit suspensions will be effective Aug. 15 and stay in place until a final administrative decision by NOAA. The suspensions prohibit the Spalt dealership from buying or selling any federally regulated seafood and prohibit their vessels from fishing in federal waters for federally regulated species.

The Spalt brothers, various corporations owned by them, and 12 of their captains were charged on April 2, 1996 by NOAA with more than 300 alleged violations of federal fishing regulations. The suits seek various permit revocations and more than $5 million in penalties. The next hearing on the full case is set for Oct. 18.

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The Interim Permit Sanctions

• On May 28, Administrative Law Judge (ALJ) Peter A. Fitzpatrick held a hearing in Boston on the government's request that the permits be suspended while the case on the civil penalties and permit revocations is pending.
• The ALJ found probable cause to believe that more than 100 willful violations were committed by the two brothers through their corporations involving false reporting of fish landings, and other illegal fishing activities. The ALJ agreed with NMFS Northeast Administrator, Dr. Andrew Rosenberg "...that those who threaten our fisheries must be removed from the industry."
• The judge's opinion states that NOAA met the burden of proof required to show that the action was necessary "to protect marine resources in cases of willfulness."
• This decision suspending the permits is final.

• These fishery violation cases are civil, not criminal matters, and are heard before an administrative law judge. The final decision of an administrative law judge on the full case can be appealed to the NOAA Administrator and then through the federal courts.
• This case began in April 1996 when NOAA issued notices of violation and assessed penalties to those charged.
• The case involves more than 300 alleged violations of fishery regulations governing Northeast scallop and groundfishing during the 1994-95 fishing season.
• Those charged include James G. Spalt and Peter Spalt of Cape Cod; six corporations owned by the Spalts that run a seafood processing dealership and five fishing vessels operating in Fall River and Hyannis, MA (F/V Atlantic, F/V Corsair, F/V Gatherer, F/V Mohawk, F/V Osprey); and the twelve captains who worked on the fishing vessels for the Spalts.
• NOAA is presently seeking permanent revocation of the dealer and fishing vessel permits involved in the interim action, as well as more than $5 million in penalties and various operator permit sanctions against the Spalts and 12 of their captains.