HALIFAX - The chief of the First Nation behind a disputed moderate livelihood lobstery fishery in Nova Scotia says recent vandalism and the loss of potential sales has cost the band more than $1.5 million.

Mike Sack, chief of the Sipekne'katik First Nation, issued a statement today saying the band has been blacklisted by lobster buyers.

He says the First Nation can't sell lobster caught by those taking part in its new, moderate livelihood fishery in St. Marys Bay or the band's regular commercially licensed boats operating in the Bay of Fundy.

A spokeswoman for the First Nation says the 11 boats taking part in the moderate livelihood fishery, which has been criticized for operating outside the regulated commercial season, will continue to haul in their catches from Lobster Fishing Area 34 and put them in storage.

However, Sack says the band's three boats used for the communal commercial fishery in an adjacent area that opened for fishing last week have been pulled from the water due to "intimidation and market embargoes" that started when the band launched its moderate livelihood fishery on Sept. 17.

The chief says the band is looking for a way to sell the catch from the livelihood fishery through a provincial exemption.