Caught is Scheme to Steal $500k in Fluke
October 22, 1014 Alan Dresner, a federally-licensed fish dealer from Brooklyn, New
York, was sentenced today in federal court in Central Islip, New York,
for violations stemming from his role in systematically underreporting
fluke (summer flounder) that was being harvested as part of the federal
Research Set-Aside (RSA) Program, the Justice Department’s Environment
and Natural Resources Division announced.
On April 23, 2014, Alan Dresner pleaded guilty to one count of
wire fraud.
The scheme involved his personal falsification and internet submission
of at least 120 fisheries dealer reports from July 2009 to December
2011, as part of a scheme to defraud the United States of 246,376 pounds
of overharvested and underreported fluke valued at $510,000.
As part of his sentence, Dresner will serve four months in prison
followed by three years of supervised release. The defendant was fined
$6000 and ordered to make a $15,000 community service payment to the
Cornell Cooperative Extension of Suffolk County in order to pay for the enhancement of fluke habitat in the waters of Long Island
through the C.C.E.’s Marine Meadows Program. Dresner was ordered to pay
$510,000 in restitution to the Marine Resources Account of the New York
State Conservation Fund. Dresner was also ordered to surrender his
federal dealer license and was banned from accessing the National
Oceanic and Atmospheric Administration’s (NOAA) SAFIS computer system.
“Today, Dresner was held accountable for his role in defrauding a
federal research program, a program whose purpose is to help ensure the
long-term sustainability of Long Island’s fisheries,” said Acting
Assistant Attorney General Sam Hirsch for the Justice Department’s
Environment and Natural Resources Division. “We are committed to
protecting the natural resources that the American people depend on
today and for future generations as well.”
“This scheme to land tremendous amounts of overages for profit was
not only detrimental to the RSA program, but also to the law abiding
fishermen who will not be able to participate in this program in 2015,”
said NOAA Special Agent Logan Gregory. “The Office of Law Enforcement
will continue to focus on ensuring a level playing field by
investigating these types of environmental crimes.”
Alan Dresner is “Fish Dealer X” as that person is identified in the related case of
U.S. v. Anthony Joseph. As
a federal fish dealer, Dresner had a NOAA permit to purchase fish
directly from commercial fishing vessels without having to go through an
intermediary. In July 2009, Dresner learned that Anthony Joseph,
captain of the F/V Stirs One, was consistently overharvesting fluke
through Joseph’s abuse of the RSA Program. By July 2009, Dresner was
making regular purchases of illegal fluke from Joseph at the Point
Lookout, New York, waterfront.
In order to cover-up his illegal fishing, Joseph would mail falsified
fishing logs, known as FVTRs, to NOAA. However, falsified FVTRs were
just one side of the coin. This is because fish dealers are required to
report their purchases to NOAA on an electronic form known as a dealer
report. The dealer reports include information such as date of landing,
port of landing, catch vessel, corresponding FVTR numbers, commercial
grade, species, price, and weight. NOAA utilizes the data in the dealer
reports to set quotas and implement other management measures designed
to ensure a sustainable fisheries. The dealer reports also serve as a
check on the information that is submitted in FVTRs. In other words,
for their scheme to work, the false data on the FVTRs had to match the
false data on the dealer reports. A mismatch would have indicated a
serious error or fraud, and would have been a red flag for fisheries
managers. Accordingly, during July 2009 to December 2011, the defendant
schemed with Anthony Joseph to file at least 120 false dealer reports
with NOAA, representing a loss of 246,376 pounds of fluke valued at
$510,000.
Theft of domestic marine resources has far-reaching consequences
beyond illicit financial gain. Fisheries managers operate on the basic
assumption that fishers and dealers make accurate and honest reports to
NOAA. When harvested fish is misreported or unreported, the integrity of
fisheries statistics and associated mathematical models are
jeopardized. Recently, based in large part on the recently quantified
illegal fluke harvesting revealed by the guilty pleas in the Jones Inlet
Seafood,
Charles Wertz Jr., Anthony Joseph, and
Dresner
cases, on Aug. 12, 2014, the Mid-Atlantic Fisheries Management Council
voted to suspend the RSA Program for 2015 in order analyze the effect
illegal fishing has had on the soundness of the RSA Program.
Anthony Joseph pleaded guilty to wire fraud, mail fraud, and
falsification of federal records on April 11, 2014, for his fisheries
fraud crimes related to Alan Dresner and Jones Inlet Seafood. He is
scheduled to be sentenced on May 20, 2015.
The case was investigated by agents of NOAA’s National Marine
Fisheries Service, with assistance from the New York State Department of
Environmental Conservation Police. The case is being prosecuted by
Christopher L. Hale of the Justice Department’s Environmental Crimes
Section, Environment and Natural Resources Division.