Summary of Criminal Prosecutions
FISCAL YEAR: 2011
1. PRINCIPAL DEFENDANT: Stanships, Inc. (Marshall Island, New York)
E.D. Louisiana 11-057
E.D. Louisiana 11-057
2. DEFENDANT: Calmore Management, Ltd.
E.D. Louisiana 11-057
E.D. Louisiana 11-057
3. DEFENDANT: Standard Shipping, Inc. (Liberia)
E.D. Louisiana 11-057
E.D. Louisiana 11-057
Stanships Inc. (Marshall Islands), Stanships Inc. (New York), Standard Shipping Inc. and Calmore Maritime Ltd., collectively are the owners and operator of the M/V Americana, a Panamanian registered cargo vessel.
The government’s investigation of the M/V Americana started when a crew member told the U.S. Coast Guard during an inspection of the ship on Nov. 29, 2010, that the ship was illegally dumping sludge and oily waste overboard using a so-called “magic pipe” to bypass required pollution prevention equipment. The crew member provided the Coast Guard with cell phone photos taken at sea showing the use of the bypass. According to an agreed upon factual statement filed in court, the defendants have admitted the following:
The government’s investigation of the M/V Americana started when a crew member told the U.S. Coast Guard during an inspection of the ship on Nov. 29, 2010, that the ship was illegally dumping sludge and oily waste overboard using a so-called “magic pipe” to bypass required pollution prevention equipment. The crew member provided the Coast Guard with cell phone photos taken at sea showing the use of the bypass. According to an agreed upon factual statement filed in court, the defendants have admitted the following:
- Sludge and oily waste from the vessel’s engines was transferred to a fuel tank and then deliberately pumped overboard.
- The ship had an unreported leak between a ballast and fuel tank that led to overboard discharges of oil contaminated waste from both tanks.
- A black “comet streak” stain of apparent oil was visible on the outside of the ship in the immediate vicinity of the overboard valve when the ship was in New Orleans in December 2010.
- The metal bypass pipe used to dump oily waste overboard was hidden from view when the ship was in port.
- A false Oil Record Book was created to conceal the illegal discharges. Ships are required to keep an Oil Record Book in which internal transfers and overboard discharges are fully recorded. The log is regularly inspected by the Coast Guard to assure compliance with U.S. and international law and to make sure ships are not a threat to U.S. ports and waters.
March 23, 2011
The defendants were all charged with 8 counts as follows: violations of - Port and Tanker Safety Act {33 U.S.C. 1232}; Obstruction of Justice {18 U.S.C. 1505 and 1519}; Obstruction of Justice - knowingly alters, destroys, mutilates, conceals, covers up, falsifies or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct or influence the investigation...}; and violating the Act to Prevent Pollution from Ships {APPS} {33 U.S.C. 1908}.
CITATION: 18 U.S.C. 1505, 18 U.S.C. 1519, 33 U.S.C. 1221, 33 U.S.C. 1908(a)
April 12, 2011
The defendants each pleaded guilty to all 8 counts.
Press Release
Department of Justice
FOR IMMEDIATE RELEASE
April 12, 2011
Shipping Conglomerate Pleads Guilty to Concealing Deliberate Pollution in “Magic Pipe” Case
Repeat Offender Banned After Being Netted Violating Probation
WASHINGTON – Four corporations involved in owning and operating a fleet of vessels regularly visiting New Orleans pleaded guilty today and agreed to pay a $1 million penalty and be banned from doing business in the United States for the next five years under the terms of a proposed plea agreement. Stanships Inc. (Marshall Islands), Stanships Inc. (New York), Standard Shipping Inc. and Calmore Maritime Ltd., collectively the owners and operator of the M/V Americana, a Panamanian registered cargo vessel, each pleaded guilty today in New Orleans before U.S. District Judge Carl J. Barbier to a total of 32 felony counts for violations of the Act to Prevent Pollution from Ships, Ports and Waterways Safety Act and obstruction of justice. According to the plea agreement, subject to approval by the court, the four corporations will be prohibited from further business in the United States during the maximum five year period of probation. The plea terms also require personal banning of the owner of the companies who is also a corporate officer in some of the companies owning or technically managing vessels during the probationary period. Of the $1 million penalty, $250,000 will be devoted to community service payments to help conservation, protection, restoration and management projects to benefit fish and wildlife habitats and resources in the Eastern District of Louisiana. The government’s investigation of the M/V Americana started when a crew member told the U.S. Coast Guard during an inspection of the ship on Nov. 29, 2010, that the ship was illegally dumping sludge and oily waste overboard using a so-called “magic pipe” to bypass required pollution prevention equipment. The crew member provided the Coast Guard with cell phone photos taken at sea showing the use of the bypass. According to an agreed upon factual statement filed in court, the defendants have admitted the following:- Sludge and oily waste from the vessel’s engines was transferred to a fuel tank and then deliberately pumped overboard.
- The ship had an unreported leak between a ballast and fuel tank that led to overboard discharges of oil contaminated waste from both tanks.
- A black “comet streak” stain of apparent oil was visible on the outside of the ship in the immediate vicinity of the overboard valve when the ship was in New Orleans in December 2010.
- The metal bypass pipe used to dump oily waste overboard was hidden from view when the ship was in port.
- A false Oil Record Book was created to conceal the illegal discharges. Ships are required to keep an Oil Record Book in which internal transfers and overboard discharges are fully recorded. The log is regularly inspected by the Coast Guard to assure compliance with U.S. and international law and to make sure ships are not a threat to U.S. ports and waters.
July 28, 2011
The defendants were sentenced to 60 months probation, during which the defendants are prohibited from owning, operating and/or managing vessels in United States waters. The defendants were ordered to pay a $1 million criminal fine and ordered to make a community service payment of $250,000 to the National Fish & Wildlife Fund.
Press Release
Department of Justice
FOR IMMEDIATE RELEASE
July 28, 2011
Repeat Offender Shipping Firm Sentenced in New Orleans to Pay $ 1 Million and Banned in “Magic Pipe” Case
WASHINGTON – Four corporations involved in owning and operating a fleet of vessels regularly visiting New Orleans were today sentenced to pay a $1 million penalty and banned from doing business in the United States for the next five years by Judge Carl J. Barbier, the Justice Department announced. Stanships Inc. (Marshall Islands), Stanships Inc. (New York), Standard Shipping Inc. and Calmore Maritime Ltd., collectively the owners and operator of the M/V Americana, a Panamanian registered cargo vessel, each pleaded guilty on April 12, 2011, in New Orleans to 32 felony counts for violations of the Act to Prevent Pollution from Ships, Ports and Waterways Safety Act and obstruction of justice. As part of the sentence, the court prohibited the shipping conglomerate from conducting further business in the United States during the maximum five year period of probation. The owner of the companies was also personally banned from being involved in the ownership or technical management of ships trading in the United States. Of the $1 million penalty, Judge Barbier ordered that $250,000 be devoted to organizational community service to help conservation, protection, restoration and management projects to benefit fish and wildlife habitats and resources in the Eastern District of Louisiana. The government’s investigation of the M/V Americana started when a crew member told the U.S. Coast Guard during an inspection of the ship on Nov. 29, 2010, that the ship was illegally dumping sludge and oily waste overboard using a so-called “magic pipe” to bypass required pollution prevention equipment. The crew member provided the Coast Guard with cell phone photos taken at sea showing the use of the bypass. According to an agreed upon factual statement filed in court, the defendants have admitted the following:- Sludge and oily waste from the vessel’s engines was transferred to a fuel tank and then deliberately pumped overboard.
- The ship had an unreported leak between a ballast and fuel tank that led to overboard discharges of oil contaminated waste from both tanks.
- A black “comet streak” stain of apparent oil was visible on the outside of the ship in the immediate vicinity of the overboard valve when the ship was in New Orleans in December 2010.
- The metal bypass pipe used to dump oily waste overboard was hidden from view when the ship was in port.
- A false Oil Record Book was created to conceal the illegal discharges. Ships are required to keep an Oil Record Book in which internal transfers and overboard discharges are fully recorded. The log is regularly inspected by the Coast Guard to assure compliance with U.S. and international law and to make sure ships are not a threat to U.S. ports and waters.
STATUTE:
- Title 18 U.S. Criminal Code (TITLE 18)
- Act to Prevent Pollution from Ships (APPS)