Canada steps up lobster scrutiny Police seize records in raids, aiming to stifle black-market sales

HALIFAX, Nova Scotia – Canada Customs and Revenue agents were examining financial records and computer files Thursday after seizing them in a series of raids related to black-market lobster sales in Nova Scotia.

Eight warrants were executed on seven fishermen and two fish brokers in Woods Harbour and Lunenburg this week during the operation that included help from the Royal Canadian Mounted Police and municipal police officers.

No charges were filed, but an agency spokesman said examination of the books could lead to civil action or criminal charges.

“We had about 40 customs agents involved in the operation,” said Roy Jamieson. “My understanding is that all the warrants were executed without any resistance or difficulty.

“The warrants were an attempt to gather financial information,” he said.

Customs officials estimate that since 1996, the government might have been denied tax revenues on as much as $200 million in black-market lobster sales in Nova Scotia.

Fishermen involved in the black market have been known to haul in big catches and later report they weren’t able to sell all of the lobsters, or that many of the crustaceans had died.

There’s no way for government inspectors to verify these kinds of claims, officials say.

In the late 1990s, the problem was considered so widespread a special task force was formed to deal with it. It included Canada Customs, the RCMP, the federal Fisheries Department and the Nova Scotia government.

“We’ve already charged and convicted a number of people in the lobster-fishing industry in the area for unreported cash sales,” said Jamieson.

It is estimated Nova Scotia fishermen land about $250 million worth of lobsters annually. Of all species caught, it is by far the most lucrative.

In 1990, shellfish made up 53 percent of the total catch in Atlantic Canada. They now constitute 80 percent, with lobster leading the pack.

The Canada fisheries department reported that lobster accounted for about $1 billion in export sales in 2002.