Summary of Criminal Prosecutions
FISCAL YEAR: 2005
1. PRINCIPAL DEFENDANT: George K. McKay
S.D. Florida 04-20072CR-GOLD
S.D. Florida 04-20072CR-GOLD
2. DEFENDANT: John Karayannides - FUGITIVE
S.D. Florida 04-20072CR-GOLD
S.D. Florida 04-20072CR-GOLD
3. DEFENDANT: Michael D. Reeve
S.D. Florida 04-20072CR-GOLD
S.D. Florida 04-20072CR-GOLD
4. DEFENDANT: Michael Merritt Krider
S.D. Florida 04-20072CR-GOLD
S.D. Florida 04-20072CR-GOLD
5. DEFENDANT: Philip James Hitchens
S.D. Florida 04-20072CR-GOLD
S.D. Florida 04-20072CR-GOLD
6. DEFENDANT: Rick Dean Stickle
S.D. Florida 04-20072CR-GOLD
S.D. Florida 04-20072CR-GOLD
An investigation of the Steam Ship Juneau was initiated after a routine USCG inspection of the vessel in Portland, Oregon upon its return from Singapore.
The SS Juneau was owned and operated by corporations located in Cedar Rapids, Iowa. The USCG inspection revealed that while the SS Juneau sailed from Singapore en route to Portland, the crew of the vessel dumped overboard approximately 450 metric tons (about 992,080 pounds) of diesel fuel contaminated wheat. Information and evidence collected during the investigation showed the SS Juneau departed the U.S. in late 1998 with approximately 113,000 metric tons of wheat bound for Bangladesh, as part of a U.S. Aid assistance provided to that country. During the voyage between 150 and 200 barrels of diesel fuel stored in a tank near the wheat leaked into the wheat hold and contaminated it. The Bangladesh government refused shipment of the contaminated portion of the wheat. Despite the direction of the Bangladesh government that the SS Juneau not leave its anchorage without properly disposing of the contaminated wheat, the SS Juneau sailed to Singapore where it dry docked and the crew was exchanged. The new master of the ship was Captain George K. McKay. In Singapore, representatives of the Sabine Transportation Company obtained bids from a local firm for the cleaning and disposal of the contaminated wheat from the SS Juneau. The company opted to hire a work crew of 15 Bulgarian nationals in Singapore for the purpose of cleaning out the wheat hold. The corporate office of the Sabine Transportation Company, with the knowledge of the owner and President Rick Stickle and Vice President Michael Reeve, directed the dumping of the contaminated wheat. On January 31, 1999, the SS Juneau departed Singapore. During the first week of the voyage, the Bulgarian workers cleaned out the hold with the contaminated wheat and dumped the oil laden wheat into the South China Sea. The vessel arrived in Portland on March 5, 1999 and a crew member informed the USCG of the dumping activities which had occurred during the voyage.
The SS Juneau was owned and operated by corporations located in Cedar Rapids, Iowa. The USCG inspection revealed that while the SS Juneau sailed from Singapore en route to Portland, the crew of the vessel dumped overboard approximately 450 metric tons (about 992,080 pounds) of diesel fuel contaminated wheat. Information and evidence collected during the investigation showed the SS Juneau departed the U.S. in late 1998 with approximately 113,000 metric tons of wheat bound for Bangladesh, as part of a U.S. Aid assistance provided to that country. During the voyage between 150 and 200 barrels of diesel fuel stored in a tank near the wheat leaked into the wheat hold and contaminated it. The Bangladesh government refused shipment of the contaminated portion of the wheat. Despite the direction of the Bangladesh government that the SS Juneau not leave its anchorage without properly disposing of the contaminated wheat, the SS Juneau sailed to Singapore where it dry docked and the crew was exchanged. The new master of the ship was Captain George K. McKay. In Singapore, representatives of the Sabine Transportation Company obtained bids from a local firm for the cleaning and disposal of the contaminated wheat from the SS Juneau. The company opted to hire a work crew of 15 Bulgarian nationals in Singapore for the purpose of cleaning out the wheat hold. The corporate office of the Sabine Transportation Company, with the knowledge of the owner and President Rick Stickle and Vice President Michael Reeve, directed the dumping of the contaminated wheat. On January 31, 1999, the SS Juneau departed Singapore. During the first week of the voyage, the Bulgarian workers cleaned out the hold with the contaminated wheat and dumped the oil laden wheat into the South China Sea. The vessel arrived in Portland on March 5, 1999 and a crew member informed the USCG of the dumping activities which had occurred during the voyage.
February 3, 2004
The defendants were indicted on charges of violating MARPOL {33 U.S.C. 1908}; making false statements {18 U.S.C. 1025} and with conspiracy {18 U.S.C. 371}.
Reeve pled guilty to one count of making false statements and one count of violating MARPOL.
Krider pled guilty to one count of making false statements.
Hitchens pled guilty to one count of violating MARPOL.
CITATION: 18 U.S.C. 1025, 18 U.S.C. 371, 33 U.S.C. 1908(a)
February 9, 2004
McKay pled guilty to one count of violating MARPOL.
November 23, 2004
Stickle pled guilty to one count of conspiracy and two counts of violating MARPOL.
December 6, 2004
Krider was sentenced to 12 months probation, ordered to perform 25 hours of community service, pay a $25 special assessment fee and a $500 federal fine.
Hitchens was sentenced to 36 months probation, ordered to perform 200 hours of community service and pay a $100 special assessment.
January 12, 2005
Reeve was sentenced to 18 months probation, ordered to perform 250 hours of community service, pay a $25 special assessment fee and a $2,000 federal fine.
February 4, 2005
McKay was sentenced to pay a $100 special assessment fee and a $500 federal fine.
April 1, 2005
Stickle was sentenced to 33 months incarceration, 24 months probation, ordered to pay a special assessment fee of $200 and a federal fine in the amount of $60,000.
December 10, 2008
Defendant John Karayannides fled the United States for his home in Greece and has been placed on the INTERPOL Red Notice, and the EPA Fugitive list.
STATUTE:
- Title 18 U.S. Criminal Code (TITLE 18)
- MARPOL Protocol - Prevention of Pollution from Ships (MARPOL)