Paddlefish Poaching Operation

[Phil Lilley]

Missouri Department of Conservation NEWS: March 14, 2013

MEDIA CONTACT: Joe Jerek, 573-522-4115 ext. 3362, or Joe.Jerek@mdc.mo.gov<mailto:Joe.Jerek@mdc.mo.gov>


MDC and federal agents snag major paddlefish poaching operation
Undercover investigation leads to arrests and/or citations of more than 100 suspects.

JEFFERSON CITY, Mo. - Known as the "Paddlefish Capital of the World," Warsaw, Missouri, is a favorite area for many of Missouri's approximately 16,000 sport paddlefish snaggers because of its location along the Osage River. Agents with the Missouri Department of Conservation (MDC) and U.S. Fish and Wildlife Service (USFWS) discovered that the Warsaw area is also a favorite location for paddlefish poachers.

A cooperative undercover investigation by the two agencies recently resulted in more than 100 suspects from Missouri and eight other states being issued citations and/or arrest warrants for state and federal crimes related to paddlefish poaching.

Missouri's official state aquatic animal, the paddlefish is an ancient species. Also called spoonbills, they can grow up to seven-feet long and weigh 160 pounds or more. Paddlefish are valued as a sport fish for both their size, and for eating. Paddlefish are also valued for their eggs, or roe, which are eaten as caviar.

The section of the Osage River running along Warsaw in Benton County is a paddlefish hot spot because it is blocked upstream by Truman Dam. When spawning paddlefish reach the dam, their route is blocked and their numbers increase dramatically. This dramatically increases sport anglers' chances of snagging the big fish with a random jerk on a fishing line equipped with large hooks.

This concentration of female paddlefish laden with eggs also makes Warsaw a prime location for paddlefish poachers to get the fish eggs for national and international illegal caviar markets.

"The national and international popularity of Missouri paddlefish eggs as a source of caviar has grown dramatically in recent years," said MDC Protection Chief Larry Yamnitz. "This is a result of European sources of caviar having declined from overfishing of the Caspian Sea's once plentiful and lucrative beluga sturgeon, another species of fish known for its caviar."

Caviar is a delicacy created by preserving fish roe in special salts. According to MDC, about 20 pounds of eggs or more can be harvested from a large, pregnant female paddlefish. Retail prices for paddlefish caviar vary. A current common retail price is about $35 per ounce.

"Caviar prices in illegal or black markets also vary," Yamnitz said. "A common black-market price is about $13 an ounce. Therefore, a single large female paddlefish with about 20 pounds of eggs is carrying about $4,000 worth of potential caviar for black market sales."

UNDERCOVER POACHING INVESTIGATION PAYS OFF

Over the course of March 13 and 14, approximately 85 conservation agents of the Missouri Department of Conservation (MDC), 40 special agents of the U.S. Fish and Wildlife Service (USWFS), and wildlife officers from other states contacted more than 100 suspects in Missouri and eight other states to issue citations, execute arrest warrants, conduct interviews and gather additional information regarding a paddlefish-poaching investigation.

The effort included eight individuals indicted for federal crimes involving the illegal trafficking of paddlefish and their eggs for use as caviar. Other states involved were Colorado, Illinois, Kansas, Minnesota, New Jersey, Oregon, Pennsylvania, and South Carolina.

The arrests and citations were the result of a multi-year joint undercover investigation by MDC conservation agents and special agents of the USFWS involving the illegal commercialization of Missouri paddlefish and their eggs for national and international caviar markets. The undercover investigation ran during the spring 2011 and spring 2012 paddlefish seasons, March 15 through April 30. It was based out of Warsaw, Missouri. Additional MDC conservation agents and federal agents supported the undercover operation.

"Sport anglers may only catch two paddlefish daily and the eggs may not be bought, sold or offered for sale," Yamnitz explained. "Extracted paddlefish eggs may not be possessed on waters of the state or adjacent banks and may not be transported. Paddlefish and their eggs may be commercially harvested only from the Mississippi River."
He added that through the undercover operation, agents were able to identify suspects engaged in wildlife violations involving the illegal purchase, resale and transport of paddlefish and their eggs, document other violations of the Missouri Wildlife Code in addition to the core investigation, and determine that paddlefish eggs harvested in Missouri were being illegally transported out of the state for redistribution.

Federal crimes tied to the poaching involve violations of the Lacey Act. The Act makes it a federal crime to poach game in one state with the purpose of selling the bounty in another state and prohibits the transportation of illegally captured<http://en.wikipedia.org/wiki/Poaching> or prohibited wildlife across state lines<http://en.wikipedia.org/wiki/Commerce_Clause>.

MDC and the USFWS worked with the Benton County Prosecuting Attorney's Office, the Benton County Sheriff's Department and the U.S. Department of Justice on the investigation.

Identification of suspects in violation of state wildlife charges is pending legal filings. Copies of the federal indictments may be obtained from the U.S. Attorney's Office in Kansas City.

Yamnitz added that additional details about the undercover operation are vital to the investigation and prosecution of cases and therefore not available at this time.

HELP STOP POACHING

The investigation began with tips from the public about illegal activities.

"Individuals from the Warsaw area first alerted us to potential paddlefish poaching in the area," said Yamnitz. "We are grateful to them, and encourage anyone spotting suspected illegal fishing or hunting activity to contact their local conservation agent, or call Operation Game Thief at 1-800-392-1111, 24 hours a day. Callers may remain anonymous and rewards are available for information leading to arrests."
POPULARITY OF MISSOURI PADDLEFISH

Paddlefish are highly valued by both sport anglers and commercial fishermen. Through MDC stocking efforts at three large reservoirs, Missouri is able to offer some of the best paddlefish snagging fisheries in the U.S. The fisheries are at Lake of the Ozarks and its tributaries, Harry S. Truman Reservoir and its tributaries, and Table Rock Lake and its tributaries, primarily the James River arm.

Without MDC's stocking of these fisheries, and other paddlefish management practices, paddlefish numbers would sharply decline in Missouri's reservoirs, reducing opportunities for sport snaggers.

In the past, paddlefish were naturally abundant in Missouri, but their numbers declined because of channelization, damming, impoundments and other river modifications. These modifications have greatly diminished the natural habitat paddlefish need to reproduce in the wild.

Today, paddlefish in Missouri must be stocked. MDC stocks about 45,000 hatchery-produced 10-12-inch-long paddlefish fingerlings each year in Missouri's three main paddlefish locations: Table Rock Lake, Truman Lake and Lake of the Ozarks.

PADDLEFISH FACTS

Paddlefish are an ancient species of fish that date back to the times of dinosaurs. The sturgeon is a similar species of fish. Both are popular for their flesh and their eggs, or roe, which is used as caviar. Paddlefish, also known as spoonbills, are most easily identified by their paddle-shaped nose, which accounts for about one-third of their body length.

Paddlefish are cartilaginous, which means that they have no bones. They are bluish-gray to blackish on the back and grade to white on the belly. They have small eyes and no scales.

Paddlefish are filter feeders. Despite their large adult size, paddlefish eat tiny crustaceans and insects, called zooplankton, as they constantly swim slowly through water with their mouths wide open.

Paddlefish can grow to a length of about seven feet, weigh up to 160 pounds or more, and live 30 years or more. Females grow larger and heavier than males. It takes about 6-8 years for a paddlefish to reach legal harvest size (34-inches) in Missouri's large reservoirs. Female paddlefish reach sexual maturity at 8-10 years and spawn every 2-3 years. Male paddlefish reach sexual maturity at 4-5 years and spawn annually. The egg masses of female paddlefish can be up to 25 percent of their body weight, with a large female paddlefish carrying about 20 pounds of eggs, or roe.

Paddlefish live mostly in open waters of big rivers and were historically found in the Mississippi, Missouri and Osage rivers, along with other streams. Paddlefish spend most of the year dispersed throughout large reservoirs and rivers until warm spring rains increase flows and raise water temperatures, which prompts the big fish to swim upstream on their spawning run. Spawning runs occur in late spring at times of increased water flow. It is triggered by a combination of daylight, water temperature, and water flow.

SNAGGING PADDLEFISH

Because they are filter feeders that eat tiny crustaceans and insects, paddlefish have no interest in traditional fishing lures and bait.

The most popular and dependable way to catch paddlefish is by snagging. This involves using a stiff, strong 6-9-foot pole with a heavy-duty reel and line. A sinker weight is attached near the end of the line, and a hook or cluster of hooks is attached to the end of the line.

Snaggers cast their lines so the sinkers hit the bottom of the river or lake. They then sweep the pole back and forth so the line moves through the water. This sweeping motion jerks the hooks through the water, followed by reeling to take up slack from the jerk. This allows the hooks to "snag" paddlefish to be reeled in.

For more information about paddlefish, visit www.mdc.mo.gov<http://www.mdc.mo.gov>.




EIGHT INDIVIDUALS INDICTED FOR LACEY ACT VIOLATIONS AND OTHER CRIMES RELATING TO THE TRAFFICKING OF PADDLEFISH "CAVIAR"

WASHINGTON -Eight individuals face federal charges stemming from a joint U.S. Fish and Wildlife Service and Missouri Department of Conservation investigation of interstate and international trafficking in paddlefish "caviar," the Department of Justice Environment and Natural Resources Division and the U.S. Attorney for the Western District of Missouri announced. Arkadiy Lvovskiy, Dmitri Elitchev, Artour Magdessian, Felix Baravik, Petr Babenko, Bogdan Nahapetyan, Fedor Pakhnyuk and Andrew Praskovsky have been charged in four, separate indictments in the Western District of Missouri for acts that occurred in 2011 and 2012.

The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the "spoonbill," is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.

Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.

Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any state.

Arkadiy Lvovskiy, 51, of Aurora, Colo., Dmitri Elitchev, 46, of Centennial, Colo., Artour Magdessian, 46, of Lone Tree, Colo., and Felix Baravik, 48, of Aurora, Colo., were charged with conspiring with each other, and others, to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that in the spring of 2011 and 2012, the defendants traveled to Warsaw, Mo., where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, the defendants transported the caviar from Missouri to Colorado. The indictment further alleges that, during the interstate transportation, the defendants engaged in counter-surveillance efforts in order to avoid being detected.

Petr Babenko, 42, of Vineland, N.J., and Bogdan Nahapetyan, 33, of Lake Ozark, Mo., were charged with conspiring with each other and other individuals to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that between March and April 2012, the defendants traveled to Warsaw where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, they transported the caviar from Missouri to New Jersey.

Fedor Pakhnyuk, 39, of Hinsdale, Ill., is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in the spring of 2011 and 2012 Pakhnyuk traveled from Illinois to Missouri for the purpose of obtaining paddlefish eggs. The indictment alleges that Pakhnyuk procured paddlefish eggs by purchasing them, and by performing processing services for other persons in exchange for a share of the processed eggs. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Illinois. The indictment alleges that Pakhnyuk also attempted to form an enterprise with other individuals that would market processed paddlefish caviar at markets in Chicago, Illinois.

Andrew Praskovsky, 40, of Erie, Colo., is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in March and April 2012, Praskovsky twice traveled to Warsaw for the purpose of purchasing paddlefish. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Kansas. The indictment alleges that, in April 2012, Praskovsky attempted to export some of the paddlefish eggs in checked luggage on an international flight departing from Dulles International Airport in Washington, D.C. The paddlefish eggs were seized at Dulles, as paddlefish eggs may only be exported if they are accompanied by a valid permit issued by the U.S. Fish & Wildlife Service under the Convention for International Trade in Endangered Species (CITES).

If convicted, the individual defendants face a maximum penalty of five years in prison, and a $250,000 fine per count, as well as forfeiture of any vehicles that were used during the commission of the crimes.

The case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation. The case is being prosecuted by Trial Attorneys James B. Nelson and Adam C. Cullman of the Department of Justice's Environmental Crimes Section and Supervisory Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney's Office for the Western District of Missouri.

An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.

[laker67]

Glad to hear this, I can recall the big roundup from table rock lake several years back. Not near as big as this one though. I think the table rock poachers were using a gill net in the upper lake. As I recall, they just ripped open the fish to remove the eggs, and let the carcass sink. A similar punishment should be administered to the poachers.

[fishinwrench]

I'm all for the MDC hatchery selling 1/2 of the spoonbill eggs they produce to better fund themselves.

Anybody got a problem with that?

[LunkerB]

Sell em up! Why not. Make money to pay for other things. I live not far from the mississippi and know some snaggers that tear em up beneath the Dam. Spoonies are some of the best eating fish out there I promise you that!

[Gavin]

Bet most were caught legal and the eggs got sold to those Russian fellows...Cant really make a moral judgement against folks who sold trash for treasure...Illegal yes...but kinda a who cares...MDC needs to set up a legal trade in spoonie eggs...Its not like they arent abundant.

[hoglaw]

The only objection to selling them would be that they're facilitating the market that incentivizes their harvest in the first place. Similar to the DEA selling 1/2 of the cocaine they seize to fund their operations....except for the whole drugs are bad for you thing. Glad to hear they nailed these guys. The one thing I can say about federal prosecutors and indictments is that they get it right the VAST majority of the time. The lawyers for the DOJ and the law enforcement men and women who work with them absolutely work these cases to death, so that by the time the indictment is actually filed, conviction is practically guaranteed. And these folks do real pen time in the federal system. That's in stark contrast to work on the state level.

An old law school buddy of mine is the elected prosecutor in McDonald County, MO. He's a great guy and I have no doubt that he works hard. But the state guys are so overwhelmed with cases that they wind up prosecuting bad cases, and not working them up hard enough. Before I moved firms, my previous boss got acquittals in a murder case and a child sex case as a defense lawyer in McDonald County cases, and that is incredibly rare. The feds work these cases really hard and nail these folks.

About a year ago, I got a text from a cousin in Napa Valley, CA, that said "We need to go into business importing paddlefish eggs! You ever heard of a paddlefish?" By no means was he interested in illegal activity, but he had just eaten paddlefish caviar in Napa. It's amazing how much demand there is for their roe. You put ten thousand dollars in front of a few good ole' boys from rural Arkansas/Missouri to go get some eggs, and they're going to be taken. Folks aren't scared to keep short fish, keep to many fish, or take game out of season. The paddlefish deal is no different. It's a serious matter and I'm glad people are paying attention.

[Outside Bend]

It's a weird dynamic- while I don't like the idea of waste, I'm not allowed to sell the crappie or bass our trout I catch, or the deer, turkey, or ducks that I kill. And I can see why MDC would be reticent- their hatcheries produce most of the paddlefish harvested in the state, I'm sure they don't want to be on the hook for underwriting the commercial caviar trade.

I wouldn't really have an issue with MDC selling eggs, although I don't know much about that area- they're only producing 100,000-200,000 paddlefish per year, and a single paddlefish can have tens of thousands of eggs. I'm not sure how many eggs they harvest, how many pounds of eggs that is, the market price of raw paddlefish eggs per pound...but I'd be a bit surprised if it was a windfall.

I doubt it'd even cover one black-helicopter mountain lion/rattlesnake parachute drop!

[Outside Bend]

And Mizzou has coupled with a few private individuals to start "paddlefish ranching" in private ponds. They'll stock a couple paddlefish per pond- often in heavily fertilized golfcourse ponds, and the fish will graze down the plankton. In five years or so the guys come back, shock or net the paddlefish out of the ponds, and harvest the eggs. Osage catfisheries has been doing it quite a bit in golf course ponds around LOZ, and they seem to be pretty successful.

[Quillback]

Based on the names, the perps look to be Russians. In the Pacific Northwest there were some Russians busted for snagging sturgeon and harvesting the roe. Of course, not all Russians living here are poachers, it's only a few of them. But that being said, Russian poachers in the Pac NW were blatant about their poaching and didn't seem to care about the consequences of being busted. If these guys get only a slap on the wrist, theyll be back at it as soon as they can.

[On The Fly 6]

Happens all over the Midwest. Mainly Russians in OK that do the same thing. My father in law is a game warden and I've heard some interesting stories about their busts and what they've confiscated.