Summary of Criminal Prosecutions
FISCAL YEAR: 2011
1. PRINCIPAL DEFENDANT: Dimitrios Grifakis
D. Maryland MJG-11-011
D. Maryland MJG-11-011
2. DEFENDANT: Cardiff Marine, Inc.
D. Maryland MJG-11-058
D. Maryland MJG-11-058
The investigation into the M/V Capitola was launched on May 3, 2010, at the Port of Baltimore, after a crew member informed a clergy member, who was on board the Capitola on a pastoral visit, that there had been “monkey business in the engine room,” which involved a “magic pipe.” The “magic pipe” proved to be a bypass hose that allowed the dumping of waste oil overboard, circumventing pollution prevention equipment required by law. The crew member asked the minister to alert the Coast Guard which triggered an inspection of the Capitola. At his plea hearing, Chief Engineer Grifakis admitted that from about March 2009 through May 3, 2010, he repeatedly ordered his subordinates to illegally pump oil-contaminated waste directly into the ocean, most commonly through the “magic pipe.” However, during the investigation, Grifakis falsely denied having ordered anyone to pump oily waste overboard and falsified documents to hide these discharges from inspectors in ports visited by the Capitola.
Grifakis also obstructed the investigation by concealing certain ship’s records and then denying that such records existed. Specifically, he concealed the Capitola’s daily sounding record, which is a daily measurement of the contents of the ship’s waste tanks. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the oil record book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The daily sounding record was not produced to the Coast Guard. Grifakis also directed other members of the engine room crew to lie to investigators and claim that the Capitola did not have a daily record of soundings.
Grifakis also obstructed the investigation by concealing certain ship’s records and then denying that such records existed. Specifically, he concealed the Capitola’s daily sounding record, which is a daily measurement of the contents of the ship’s waste tanks. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the oil record book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The daily sounding record was not produced to the Coast Guard. Grifakis also directed other members of the engine room crew to lie to investigators and claim that the Capitola did not have a daily record of soundings.
January 11, 2011
Grifakis was charged with making false statements {18 U.S.C. 1001}; obstruction of proceedings before department, agencies and committees {18 U.S.C. 1505}; Witness tampering {18 U.S.C. 1512}; destruction, alteration or falsification of records in Federal investigations {18 U.S.C. 1519} and violation of the MARPOL Protocol {33 U.S.C. 1908(a)}.
CITATION: 18 U.S.C. 1001, 18 U.S.C. 1512, 18 U.S.C. 1519, 33 U.S.C. 1221, 33 U.S.C. 1908(a)
February 3, 2011
Cardiff was charged with one count of violating MARPOL Protocol {33 U.S.C. 1908(a)} and one count of obstruction {18 U.S.C. 1505}.
February 23, 2011
Cardiff pled guilty and was sentenced to 36 months probation and was ordered to pay $2,400,000 in federal fines.
Department of Justice
FOR IMMEDIATE RELEASE
February 23, 2011 Liberian Shipping Company Sentenced to Pay $2.4 Million for Falsifying Oil Record Book and Lying to Cover up Illegal Discharges of Waste WASHINGTON – Cardiff Marine Inc, a Liberian-registered shipping company, was sentenced today in federal court in Baltimore after pleading guilty to a felony violation of the Act to Prevent Pollution from Ships. The company admitted falsifying records of illegal discharges of oily waste from the M/V Capitola , making false statements to the Coast Guard and other acts of concealment. U.S. District Judge Marvin J. Garbis sentenced Cardiff to pay a $2.4 million fine and serve three years probation, subject to an environmental compliance plan that includes audits by an independent third party auditor. The guilty plea and sentencing were announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Ignacia S. Moreno, Assistant Attorney General, Environment & Natural Resources, U.S. Department of Justice; Rear Adm. Dean Lee, Commander of the U.S. Coast Guard's 5th District; Special Agent in Charge Otis E. Harris, Jr. of the Coast Guard Investigative Service-Chesapeake Region; and Special Agent in Charge David M. Dillon of Environmental Protection Agency’s Criminal Investigation Division. According to court documents, the investigation into the M/V Capitola was launched on May 3, 2010, at the Port of Baltimore, after a crew member informed a clergyman, who was on board the Capitola on a pastoral visit, that there had been “monkey business in the engine room,” which involved a “magic pipe.” The magic pipe proved to be a bypass hose that allowed the dumping of waste oil overboard, circumventing pollution prevention equipment required by law. The crew member asked the minister to alert the Coast Guard and to pass on a flash drive bearing video taken in the ship’s engine room. That triggered an inspection of the Capitola, and ultimately, today’s guilty plea. “The Department of Justice will continue to hold shipping companies like Cardiff accountable for breaking the laws that protect our oceans,” said Assistant Attorney General Moreno. “Shippers who fail to record discharges of oily waste, discharge waste illegally, or try to cover up this unacceptable and illegal practice will be prosecuted.” “Cardiff Marine blatantly violated the law by dumping oil in the ocean and then lying to the Coast Guard about it,” said U.S. Attorney Rosenstein. “As part of the punishment for this crime, Cardiff Marine will pay a fine of $2.4 million, and Cardiff will remain under court supervision for three years.” “The resolution of this case is a credit to our strong partnership with the Department of Justice,” said Rear Admiral Lee. “The Coast Guard brings to bear the expertise and detection capability of our marine inspectors, and our partnership with the Department of Justice allows us to hold marine polluters accountable.” “The oceans must be protected from shipping companies that look to cut corners by dumping waste improperly,” said Special Agent-in-Charge Dillon. “Today’s action demonstrates that neither the government nor the public will tolerate the flagrant disregard of U.S. laws. Those who violate the law and pollute our waters will be vigorously prosecuted.” An investigation, involving agents from the Coast Guard Investigative Service and EPA’s Criminal Investigative Division, with support from their agencies, confirmed that there had been an illegal discharge system on the Capitola as depicted in the whistleblower’s video. It showed a black hose tied in several places to overhead piping in the Capitola’s engine room. The hose connected one of the vessel’s waste oil tanks to a valve that opened directly to the ocean. During its inspection, the Coast Guard interviewed members of the Capitola’s engine room crew, including the whistleblower. Three of these crew members had served on the Capitola for more than six months and during that time had witnessed multiple occasions when a hose was used to discharge the waste oil, sludge and water that had accumulated in the separated oil tank overboard, as directed by a senior engineering officer. None of these illegal discharges were recorded in the Oil Record Book, as required by law. Investigators also learned that there had been a document called the Daily Sounding Record on the Capitola, and that it had tracked how much waste oil, sludge and bilge water was in each waste tank, on a daily basis. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the Oil Record Book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The Daily Sounding Record was not produced to the Coast Guard. The senior engineering officer who kept these records told the Coast Guard that the only record of waste tank levels that he had were undated scraps of paper in his office. This prosecution was made possible through the combined efforts of the U.S. Coast Guard Sector-Baltimore; the Coast Guard Investigative Service-Baltimore; Coast Guard Fifth District Legal Office; Coast Guard Office of Maritime and International Law; Coast Guard Office of Investigations and Analysis; EPA Criminal Investigations Division. The cases were prosecuted by Thomas T. Ballantine of the Environmental Crimes Section of the U.S. Department of Justice and Justin S. Herring, Assistant U.S. Attorney in Baltimore.
Department of Justice
FOR IMMEDIATE RELEASE
February 23, 2011 Liberian Shipping Company Sentenced to Pay $2.4 Million for Falsifying Oil Record Book and Lying to Cover up Illegal Discharges of Waste WASHINGTON – Cardiff Marine Inc, a Liberian-registered shipping company, was sentenced today in federal court in Baltimore after pleading guilty to a felony violation of the Act to Prevent Pollution from Ships. The company admitted falsifying records of illegal discharges of oily waste from the M/V Capitola , making false statements to the Coast Guard and other acts of concealment. U.S. District Judge Marvin J. Garbis sentenced Cardiff to pay a $2.4 million fine and serve three years probation, subject to an environmental compliance plan that includes audits by an independent third party auditor. The guilty plea and sentencing were announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Ignacia S. Moreno, Assistant Attorney General, Environment & Natural Resources, U.S. Department of Justice; Rear Adm. Dean Lee, Commander of the U.S. Coast Guard's 5th District; Special Agent in Charge Otis E. Harris, Jr. of the Coast Guard Investigative Service-Chesapeake Region; and Special Agent in Charge David M. Dillon of Environmental Protection Agency’s Criminal Investigation Division. According to court documents, the investigation into the M/V Capitola was launched on May 3, 2010, at the Port of Baltimore, after a crew member informed a clergyman, who was on board the Capitola on a pastoral visit, that there had been “monkey business in the engine room,” which involved a “magic pipe.” The magic pipe proved to be a bypass hose that allowed the dumping of waste oil overboard, circumventing pollution prevention equipment required by law. The crew member asked the minister to alert the Coast Guard and to pass on a flash drive bearing video taken in the ship’s engine room. That triggered an inspection of the Capitola, and ultimately, today’s guilty plea. “The Department of Justice will continue to hold shipping companies like Cardiff accountable for breaking the laws that protect our oceans,” said Assistant Attorney General Moreno. “Shippers who fail to record discharges of oily waste, discharge waste illegally, or try to cover up this unacceptable and illegal practice will be prosecuted.” “Cardiff Marine blatantly violated the law by dumping oil in the ocean and then lying to the Coast Guard about it,” said U.S. Attorney Rosenstein. “As part of the punishment for this crime, Cardiff Marine will pay a fine of $2.4 million, and Cardiff will remain under court supervision for three years.” “The resolution of this case is a credit to our strong partnership with the Department of Justice,” said Rear Admiral Lee. “The Coast Guard brings to bear the expertise and detection capability of our marine inspectors, and our partnership with the Department of Justice allows us to hold marine polluters accountable.” “The oceans must be protected from shipping companies that look to cut corners by dumping waste improperly,” said Special Agent-in-Charge Dillon. “Today’s action demonstrates that neither the government nor the public will tolerate the flagrant disregard of U.S. laws. Those who violate the law and pollute our waters will be vigorously prosecuted.” An investigation, involving agents from the Coast Guard Investigative Service and EPA’s Criminal Investigative Division, with support from their agencies, confirmed that there had been an illegal discharge system on the Capitola as depicted in the whistleblower’s video. It showed a black hose tied in several places to overhead piping in the Capitola’s engine room. The hose connected one of the vessel’s waste oil tanks to a valve that opened directly to the ocean. During its inspection, the Coast Guard interviewed members of the Capitola’s engine room crew, including the whistleblower. Three of these crew members had served on the Capitola for more than six months and during that time had witnessed multiple occasions when a hose was used to discharge the waste oil, sludge and water that had accumulated in the separated oil tank overboard, as directed by a senior engineering officer. None of these illegal discharges were recorded in the Oil Record Book, as required by law. Investigators also learned that there had been a document called the Daily Sounding Record on the Capitola, and that it had tracked how much waste oil, sludge and bilge water was in each waste tank, on a daily basis. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the Oil Record Book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The Daily Sounding Record was not produced to the Coast Guard. The senior engineering officer who kept these records told the Coast Guard that the only record of waste tank levels that he had were undated scraps of paper in his office. This prosecution was made possible through the combined efforts of the U.S. Coast Guard Sector-Baltimore; the Coast Guard Investigative Service-Baltimore; Coast Guard Fifth District Legal Office; Coast Guard Office of Maritime and International Law; Coast Guard Office of Investigations and Analysis; EPA Criminal Investigations Division. The cases were prosecuted by Thomas T. Ballantine of the Environmental Crimes Section of the U.S. Department of Justice and Justin S. Herring, Assistant U.S. Attorney in Baltimore.
May 4, 2011
Grifakis pled guilty to obstructing a Coast Guard inspection.
FOR IMMEDIATE RELEASE
May 4, 2011 CHIEF ENGINEER PLEADS GUILTY TO OBSTRUCTING INVESTIGATION INTO THE ILLEGAL OVERBOARD DISCHARGE OF OILY WASTE Baltimore, Maryland – Dimitrios Grifakis, 57, of Kallithea, Greece, pleaded guilty today to obstructing a Coast Guard inspection that took place aboard the M/V Capitola from May 3 to May 11, 2010.Grifakis was then the Chief Engineer of the Capitola. The guilty plea was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Ignacia S. Moreno, Assistant Attorney General, Environment & Natural Resources Division, U.S. Department of Justice; Rear Adm. Dean Lee, Commander of the U.S. Coast Guard's 5thDistrict; Special Agent in Charge Otis E. Harris, Jr. of the Coast Guard Investigative Service-Chesapeake Region; and Acting Special Agent in Charge Christian Spangenberg of Environmental Protection Agency’s (EPA) Criminal Investigation Division. According to Grifakis’ guilty plea and other court documents, the investigation into the M/V Capitola was launched on May 3, 2010, at the Port of Baltimore, after a crew member informed a clergy member, who was on board the Capitola on a pastoral visit, that there had been “monkey business in the engine room,” which involved a “magic pipe.” The “magic pipe” proved to be a bypass hose that allowed the dumping of waste oil overboard, circumventing pollution prevention equipment required by law. The crew member asked the minister to alert the Coast Guard which triggered an inspection of the Capitola. Grifakis now admits that from about March 2009 through May 3, 2010,he repeatedly ordered his subordinates to illegally pump oil-contaminated waste directly into the ocean, most commonly through the “magic pipe.” However, during the investigation, Grifakis falsely denied having ordered anyone to pump oily waste overboard and falsified documents to hide these discharges from inspectors in ports visited by the Capitola. Every ship that enters the U.S. is required to have an accurate Oil Record Book that records the ship’s operation related to oil, including the handling and disposal of oil contaminated waste. Grifakis presented an Oil Record Book to the U.S. Coast Guard that was intentionally falsified to conceal the illegal overboard discharges of oil contaminated waste. An Oil Record Book is required under United States law and the International Convention for the Prevention of Pollution from Ships, which regulates the discharge of pollutants from vessels at sea and is known as the MARPOL Protocol (MARPOL). The objective of MARPOL is to preserve the marine environment through the complete elimination of intentional pollution by oil and other harmful substances and the minimization of accidental discharge of such substances. The United States is one of the one hundred and sixty-nine nations that are parties to MARPOL. Grifakis also obstructed the investigation by denying that the Capitola had a Daily Sounding Record, which is a daily measurement of the contents of the ship’s waste tanks. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the Oil Record Book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The Daily Sounding Record was not produced to the Coast Guard. Grifakis also directed other members of the engine room crew to lie to investigators and claim that the Capitola did not have a daily record of soundings. In a related case, Cardiff Marine Inc., a Liberian-registered shipping company also pleaded guilty in February 2011 to obstructing a Coast Guard examination and violating the Act to Prevent Pollution from Ships. The company was sentenced to pay a $2.4 million fine, and to serve three years probation, subject to an environmental compliance plan that includes audits by an independent third party auditor. This prosecution was made possible through the combined efforts of the U.S. Coast Guard Sector-Baltimore, the Coast Guard Investigative Service-Baltimore, Coast Guard Fifth District Legal Office, Coast Guard Office of Maritime and International Law, Coast Guard Office of Investigations and Analysis, EPA Criminal Investigation Division with assistance from U.S. Customs and Border Protection. The cases were prosecuted by Justin S. Herring, Assistant U.S. Attorney in Maryland and Thomas T. Ballantine, Environmental Crimes Section of the Environment and Natural Resources Division of the U.S. Department of Justice.
FOR IMMEDIATE RELEASE
May 4, 2011 CHIEF ENGINEER PLEADS GUILTY TO OBSTRUCTING INVESTIGATION INTO THE ILLEGAL OVERBOARD DISCHARGE OF OILY WASTE Baltimore, Maryland – Dimitrios Grifakis, 57, of Kallithea, Greece, pleaded guilty today to obstructing a Coast Guard inspection that took place aboard the M/V Capitola from May 3 to May 11, 2010.Grifakis was then the Chief Engineer of the Capitola. The guilty plea was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Ignacia S. Moreno, Assistant Attorney General, Environment & Natural Resources Division, U.S. Department of Justice; Rear Adm. Dean Lee, Commander of the U.S. Coast Guard's 5thDistrict; Special Agent in Charge Otis E. Harris, Jr. of the Coast Guard Investigative Service-Chesapeake Region; and Acting Special Agent in Charge Christian Spangenberg of Environmental Protection Agency’s (EPA) Criminal Investigation Division. According to Grifakis’ guilty plea and other court documents, the investigation into the M/V Capitola was launched on May 3, 2010, at the Port of Baltimore, after a crew member informed a clergy member, who was on board the Capitola on a pastoral visit, that there had been “monkey business in the engine room,” which involved a “magic pipe.” The “magic pipe” proved to be a bypass hose that allowed the dumping of waste oil overboard, circumventing pollution prevention equipment required by law. The crew member asked the minister to alert the Coast Guard which triggered an inspection of the Capitola. Grifakis now admits that from about March 2009 through May 3, 2010,he repeatedly ordered his subordinates to illegally pump oil-contaminated waste directly into the ocean, most commonly through the “magic pipe.” However, during the investigation, Grifakis falsely denied having ordered anyone to pump oily waste overboard and falsified documents to hide these discharges from inspectors in ports visited by the Capitola. Every ship that enters the U.S. is required to have an accurate Oil Record Book that records the ship’s operation related to oil, including the handling and disposal of oil contaminated waste. Grifakis presented an Oil Record Book to the U.S. Coast Guard that was intentionally falsified to conceal the illegal overboard discharges of oil contaminated waste. An Oil Record Book is required under United States law and the International Convention for the Prevention of Pollution from Ships, which regulates the discharge of pollutants from vessels at sea and is known as the MARPOL Protocol (MARPOL). The objective of MARPOL is to preserve the marine environment through the complete elimination of intentional pollution by oil and other harmful substances and the minimization of accidental discharge of such substances. The United States is one of the one hundred and sixty-nine nations that are parties to MARPOL. Grifakis also obstructed the investigation by denying that the Capitola had a Daily Sounding Record, which is a daily measurement of the contents of the ship’s waste tanks. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the Oil Record Book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The Daily Sounding Record was not produced to the Coast Guard. Grifakis also directed other members of the engine room crew to lie to investigators and claim that the Capitola did not have a daily record of soundings. In a related case, Cardiff Marine Inc., a Liberian-registered shipping company also pleaded guilty in February 2011 to obstructing a Coast Guard examination and violating the Act to Prevent Pollution from Ships. The company was sentenced to pay a $2.4 million fine, and to serve three years probation, subject to an environmental compliance plan that includes audits by an independent third party auditor. This prosecution was made possible through the combined efforts of the U.S. Coast Guard Sector-Baltimore, the Coast Guard Investigative Service-Baltimore, Coast Guard Fifth District Legal Office, Coast Guard Office of Maritime and International Law, Coast Guard Office of Investigations and Analysis, EPA Criminal Investigation Division with assistance from U.S. Customs and Border Protection. The cases were prosecuted by Justin S. Herring, Assistant U.S. Attorney in Maryland and Thomas T. Ballantine, Environmental Crimes Section of the Environment and Natural Resources Division of the U.S. Department of Justice.
June 16, 2011
Grifakis was sentenced to 6 months incarceration and 24 months probation.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
June 16, 2011 Chief Engineer Sentenced in Maryland for Obstructing Investigation into the Illegal Overboard Discharge of Oily Waste WASHINGTON – Dimitrios Grifakis, 57, of Kallithea, Greece, was sentenced today by U.S. District Judge Marvin J. Garbis to six months in prison, followed by two years of supervised release, for obstructing a Coast Guard inspection that took place in May 2010 aboard a Liberian-operated cargo ship M/V Capitola at the Port of Baltimore. Grifakis was then the Chief Engineer of the Capitola. In a related case, Cardiff Marine Inc., the Liberian-registered shipping company and operator of the Capitola previously pleaded guilty to obstructing a Coast Guard examination and violating the Act to Prevent Pollution from Ships. The company was sentenced in February 2011 to pay a $2.4 million fine, and to serve three years probation, subject to an environmental compliance plan that includes audits by an independent third party auditor. The sentence was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Ignacia S. Moreno, Assistant Attorney General, Environment & Natural Resources Division, U.S. Department of Justice; Rear Adm. Dean Lee, Commander of the U.S. Coast Guard's 5th District; Special Agent in Charge Otis E. Harris, Jr. of the Coast Guard Investigative Service-Chesapeake Region; and Acting Special Agent in Charge Christian Spangenberg of Environmental Protection Agency’s (EPA) Criminal Investigation Division. According to Grifakis’ guilty plea and other court documents, the investigation into the M/V Capitola was launched on May 3, 2010, at the Port of Baltimore, after a crew member informed a clergy member, who was on board the Capitola on a pastoral visit, that there had been “monkey business in the engine room,” which involved a “magic pipe.” The “magic pipe” proved to be a bypass hose that allowed the dumping of waste oil overboard, circumventing pollution prevention equipment required by law. The crew member asked the minister to alert the Coast Guard which triggered an inspection of the Capitola. At his plea hearing, Grifakis admitted that from about March 2009 through May 3, 2010, he repeatedly ordered his subordinates to illegally pump oil-contaminated waste directly into the ocean, most commonly through the “magic pipe.” However, during the investigation, Grifakis falsely denied having ordered anyone to pump oily waste overboard and falsified documents to hide these discharges from inspectors in ports visited by the Capitola. Every ship that enters the U.S. is required to have an accurate oil record book that records the ship’s operation related to oil, including the handling and disposal of oil contaminated waste. Grifakis presented an oil record book to the U.S. Coast Guard that was intentionally falsified to conceal the illegal overboard discharges of oil contaminated waste. An oil record book is required under U.S. law and the International Convention for the Prevention of Marine Pollution from Ships, also known as the MARPOL Protocol, which regulates the discharge of pollutants from vessels at sea. The objective of MARPOL is to preserve the marine environment through the complete elimination of intentional pollution by oil and other harmful substances and the minimization of accidental discharge of such substances. The United States is one of the one hundred and sixty-nine nations that are parties to MARPOL. Grifakis also obstructed the investigation by concealing certain ship’s records and then denying that such records existed. Specifically, he concealed the Capitola’s daily sounding record, which is a daily measurement of the contents of the ship’s waste tanks. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the oil record book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The daily sounding record was not produced to the Coast Guard. Grifakis also directed other members of the engine room crew to lie to investigators and claim that the Capitola did not have a daily record of soundings. This prosecution was made possible through the combined efforts of the U.S. Coast Guard Sector-Baltimore, the Coast Guard Investigative Service-Baltimore, Coast Guard Fifth District Legal Office, Coast Guard Office of Maritime and International Law, Coast Guard Office of Investigations and Analysis, and EPA Criminal Investigation Division with assistance from U.S. Customs and Border Protection. The cases were prosecuted by Justin S. Herring, Assistant U.S. Attorney in Maryland and Thomas T. Ballantine, Environmental Crimes Section of the Environment and Natural Resources Division of the U.S. Department of Justice.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
June 16, 2011 Chief Engineer Sentenced in Maryland for Obstructing Investigation into the Illegal Overboard Discharge of Oily Waste WASHINGTON – Dimitrios Grifakis, 57, of Kallithea, Greece, was sentenced today by U.S. District Judge Marvin J. Garbis to six months in prison, followed by two years of supervised release, for obstructing a Coast Guard inspection that took place in May 2010 aboard a Liberian-operated cargo ship M/V Capitola at the Port of Baltimore. Grifakis was then the Chief Engineer of the Capitola. In a related case, Cardiff Marine Inc., the Liberian-registered shipping company and operator of the Capitola previously pleaded guilty to obstructing a Coast Guard examination and violating the Act to Prevent Pollution from Ships. The company was sentenced in February 2011 to pay a $2.4 million fine, and to serve three years probation, subject to an environmental compliance plan that includes audits by an independent third party auditor. The sentence was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Ignacia S. Moreno, Assistant Attorney General, Environment & Natural Resources Division, U.S. Department of Justice; Rear Adm. Dean Lee, Commander of the U.S. Coast Guard's 5th District; Special Agent in Charge Otis E. Harris, Jr. of the Coast Guard Investigative Service-Chesapeake Region; and Acting Special Agent in Charge Christian Spangenberg of Environmental Protection Agency’s (EPA) Criminal Investigation Division. According to Grifakis’ guilty plea and other court documents, the investigation into the M/V Capitola was launched on May 3, 2010, at the Port of Baltimore, after a crew member informed a clergy member, who was on board the Capitola on a pastoral visit, that there had been “monkey business in the engine room,” which involved a “magic pipe.” The “magic pipe” proved to be a bypass hose that allowed the dumping of waste oil overboard, circumventing pollution prevention equipment required by law. The crew member asked the minister to alert the Coast Guard which triggered an inspection of the Capitola. At his plea hearing, Grifakis admitted that from about March 2009 through May 3, 2010, he repeatedly ordered his subordinates to illegally pump oil-contaminated waste directly into the ocean, most commonly through the “magic pipe.” However, during the investigation, Grifakis falsely denied having ordered anyone to pump oily waste overboard and falsified documents to hide these discharges from inspectors in ports visited by the Capitola. Every ship that enters the U.S. is required to have an accurate oil record book that records the ship’s operation related to oil, including the handling and disposal of oil contaminated waste. Grifakis presented an oil record book to the U.S. Coast Guard that was intentionally falsified to conceal the illegal overboard discharges of oil contaminated waste. An oil record book is required under U.S. law and the International Convention for the Prevention of Marine Pollution from Ships, also known as the MARPOL Protocol, which regulates the discharge of pollutants from vessels at sea. The objective of MARPOL is to preserve the marine environment through the complete elimination of intentional pollution by oil and other harmful substances and the minimization of accidental discharge of such substances. The United States is one of the one hundred and sixty-nine nations that are parties to MARPOL. Grifakis also obstructed the investigation by concealing certain ship’s records and then denying that such records existed. Specifically, he concealed the Capitola’s daily sounding record, which is a daily measurement of the contents of the ship’s waste tanks. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the oil record book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The daily sounding record was not produced to the Coast Guard. Grifakis also directed other members of the engine room crew to lie to investigators and claim that the Capitola did not have a daily record of soundings. This prosecution was made possible through the combined efforts of the U.S. Coast Guard Sector-Baltimore, the Coast Guard Investigative Service-Baltimore, Coast Guard Fifth District Legal Office, Coast Guard Office of Maritime and International Law, Coast Guard Office of Investigations and Analysis, and EPA Criminal Investigation Division with assistance from U.S. Customs and Border Protection. The cases were prosecuted by Justin S. Herring, Assistant U.S. Attorney in Maryland and Thomas T. Ballantine, Environmental Crimes Section of the Environment and Natural Resources Division of the U.S. Department of Justice.
STATUTE:
- Act to Prevent Pollution from Ships (APPS)