Summary of Criminal Prosecutions
FISCAL YEAR: 2010
1. PRINCIPAL DEFENDANT: Cooperative Success Maritimes, SA
E.D. North Carolina 4:10-CR-35-1-D
E.D. North Carolina 4:10-CR-35-1-D
2. DEFENDANT: Vaja Sikharulidze
E.D. North Carolina 4:10-CR-35-1-D
E.D. North Carolina 4:10-CR-35-1-D
Cooperative Success Maritime S.A., the operator of the M/T Chem Faros, a 21,145 gross-ton ocean-going cargo ship that regularly transported cargo between foreign ports and the United States, pleaded guilty and was sentenced on June 7, 2010, in U.S. District Court for the Eastern District of North Carolina for violating the Act to Prevent Pollution from Ships (APPS) and for making material false statements. The company was sentenced to a five-year probation and was fined $850,000.
During a regular inspection of the ship on March 29, 2010, in Morehead City, N.C., an engine crew member passed a note to a U.S. Coast Guard inspector alerting him to a “magic pipe” being used. The subsequent investigation revealed that from September 2009 through March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using the pipe that by-passed the oil-water separator (OWS) on several occasions. On March 18, 2010, the chief engineer, Vaja Sikharulidze, ordered the engine department crew members, through the second engineer, to by-pass the OWS and discharge oil-contaminated bilge waste directly overboard, resulting in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. Sikharulidze acknowledged making false entries in the oil record book to hide the true amount of oil-contaminated bilge waste that was stored in a certain tank aboard the ship. Federal and international law requires that all ships comply with pollution regulations requiring the proper disposal of oily waste water and sludge by passing the oily waste through an OWS aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires the ship’s crew to record accurately in an oil record book (ORB) each transfer or disposal of oily waste water and sludge.
During a regular inspection of the ship on March 29, 2010, in Morehead City, N.C., an engine crew member passed a note to a U.S. Coast Guard inspector alerting him to a “magic pipe” being used. The subsequent investigation revealed that from September 2009 through March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using the pipe that by-passed the oil-water separator (OWS) on several occasions. On March 18, 2010, the chief engineer, Vaja Sikharulidze, ordered the engine department crew members, through the second engineer, to by-pass the OWS and discharge oil-contaminated bilge waste directly overboard, resulting in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. Sikharulidze acknowledged making false entries in the oil record book to hide the true amount of oil-contaminated bilge waste that was stored in a certain tank aboard the ship. Federal and international law requires that all ships comply with pollution regulations requiring the proper disposal of oily waste water and sludge by passing the oily waste through an OWS aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires the ship’s crew to record accurately in an oil record book (ORB) each transfer or disposal of oily waste water and sludge.
April 23, 2010
Sikharulidze was charged with violating the Act to Prevent Pollution from Ships (APPS), {33, U.S.C 1901, et. seq.}.
CITATION: 18 U.S.C. 1001(a)(3), 33 U.S.C. 1908(a)
May 3, 2010
Sikharulidze pled guilty to the charge.
Eastern District of North Carolina
IMMEDIATE RELEASE
May 3, 2010 CARGO SHIPS’ CHIEF ENGINEER PLEADS GUILTY TO VIOLATING POLLUTION PREVENTION ACT RALEIGH - United States Attorney George E.B. Holding announced that in federal court today VAJA SIKHARULIDZE, a citizen of Georgia, pled guilty before United States District Judge James C. Dever, III, to violating the Act to Prevent Pollution from Ships (APPS), in violation of Title 33, United States Code, Sections 1901, et. seq. A Criminal Information was filed on April 23, 2010. SIKHARULIDZE, 59, was the Chief Engineer of the Motor Tanker Chem Faros, a 21,145 gross-ton ocean-going cargo ship. The ship was operated by Cooperative Success Maritime SA and regularly transported cargo between various ports in Asia and the United States, to include Morehead City, North Carolina. Consistent with requirements in the APPS regulations, a vessel other than an oil tanker, must maintain a record known as an Oil Record Book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the Oily Water Separator (OWS), which is used to separate the water from the oil and other wastes, and the effluent contains 15 parts per million or less of oil. The investigation revealed that from March 4, 2010, through March 29, 2010, SIKHARULIDZE, who had overall responsibility for the Engine Department, failed to maintain an accurate Oil Record Book for the disposals of oil residue and discharges overboard and disposals of oily sludges, oily mixtures, slops from bilges and bilge water that accumulated in machinery spaces. Specifically, the Oil Record Book failed to show discharges of oil-contaminated waste made without the use of the ship’s pollution prevention equipment. Further, from September, 2009, until March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using a pipe that by-passed the OWS. On at least one occasion between March 4, 2010, and March 29, 2010, SIKHARULIDZE directed subordinate crew members to by-pass the ships’ OWS and pump oil-contaminated waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. “The importance of keeping pollutants out of our natural resources has been realized over the last 30 years and pollution prevention acts, such as the one that has been violated, was put in place to protect these resources. We take violations of these acts very seriously, because we want to ensure that we protect our natural resources for future generations,” stated Mr. Holding. "As a steward of the environment, the Coast Guard strives to discourage illegal practices such as the Chem Faros' improper handling of oil and oily waste that threaten our maritime resources," said Rear Admiral Wayne E. Justice, Coast Guard 5th District commander. "The enforcement of pollution prevention laws through diligent investigations in close cooperation with our agency partners, such as the Department of Justice, helps to prevent future violations of this nature." At sentencing, SIKHARULIDZE faces a maximum statutory penalty of up to six years’ imprisonment and/or a fine of up $250,000 and up to three years supervised release. Investigation of this case was conducted by the United States Coast Guard and the Environmental Protection Agency with assistance from the Federal Bureau of Investigation Computer Forensic Team. Assistant United States Attorney Banumathi Rangarajan and Trial Attorney Shenni Patel with the Department of Justice Environmental Crimes Section represented the government.
Eastern District of North Carolina
IMMEDIATE RELEASE
May 3, 2010 CARGO SHIPS’ CHIEF ENGINEER PLEADS GUILTY TO VIOLATING POLLUTION PREVENTION ACT RALEIGH - United States Attorney George E.B. Holding announced that in federal court today VAJA SIKHARULIDZE, a citizen of Georgia, pled guilty before United States District Judge James C. Dever, III, to violating the Act to Prevent Pollution from Ships (APPS), in violation of Title 33, United States Code, Sections 1901, et. seq. A Criminal Information was filed on April 23, 2010. SIKHARULIDZE, 59, was the Chief Engineer of the Motor Tanker Chem Faros, a 21,145 gross-ton ocean-going cargo ship. The ship was operated by Cooperative Success Maritime SA and regularly transported cargo between various ports in Asia and the United States, to include Morehead City, North Carolina. Consistent with requirements in the APPS regulations, a vessel other than an oil tanker, must maintain a record known as an Oil Record Book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the Oily Water Separator (OWS), which is used to separate the water from the oil and other wastes, and the effluent contains 15 parts per million or less of oil. The investigation revealed that from March 4, 2010, through March 29, 2010, SIKHARULIDZE, who had overall responsibility for the Engine Department, failed to maintain an accurate Oil Record Book for the disposals of oil residue and discharges overboard and disposals of oily sludges, oily mixtures, slops from bilges and bilge water that accumulated in machinery spaces. Specifically, the Oil Record Book failed to show discharges of oil-contaminated waste made without the use of the ship’s pollution prevention equipment. Further, from September, 2009, until March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using a pipe that by-passed the OWS. On at least one occasion between March 4, 2010, and March 29, 2010, SIKHARULIDZE directed subordinate crew members to by-pass the ships’ OWS and pump oil-contaminated waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. “The importance of keeping pollutants out of our natural resources has been realized over the last 30 years and pollution prevention acts, such as the one that has been violated, was put in place to protect these resources. We take violations of these acts very seriously, because we want to ensure that we protect our natural resources for future generations,” stated Mr. Holding. "As a steward of the environment, the Coast Guard strives to discourage illegal practices such as the Chem Faros' improper handling of oil and oily waste that threaten our maritime resources," said Rear Admiral Wayne E. Justice, Coast Guard 5th District commander. "The enforcement of pollution prevention laws through diligent investigations in close cooperation with our agency partners, such as the Department of Justice, helps to prevent future violations of this nature." At sentencing, SIKHARULIDZE faces a maximum statutory penalty of up to six years’ imprisonment and/or a fine of up $250,000 and up to three years supervised release. Investigation of this case was conducted by the United States Coast Guard and the Environmental Protection Agency with assistance from the Federal Bureau of Investigation Computer Forensic Team. Assistant United States Attorney Banumathi Rangarajan and Trial Attorney Shenni Patel with the Department of Justice Environmental Crimes Section represented the government.
May 5, 2010
CSM was charged in an Information, with one count of making false statements, a violation of 18 U.S.C. 1001(a)(3) and one count of violating MARPOL {33 U.S.C. 1908(a) }.
June 7, 2010
CSM pled guilty to the two counts and was sentenced to 60 months probation and ordered to pay a $700,000 federal fine.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, June 7, 2010 Ship Management Firm Pleads Guilty and is Sentenced for Violating Federal Pollution Law WASHINGTON—Cooperative Success Maritime S.A., the operator of the M/T Chem Faros, a 21,145 gross-ton ocean-going cargo ship that regularly transported cargo between foreign ports and the United States, pleaded guilty and was sentenced today in federal court for violating the Act to Prevent Pollution from Ships (APPS), and to making material false statements, the Justice Department announced. U.S. District Court Judge James C. Dever III for the Eastern District of North Carolina sentenced the company to pay a $850,000 penalty of which $150,000 will be paid to the congressionally-created National Fish and Wildlife Fund as a community service payment. The judge also sentenced the company to serve five years of probation, during which time they will implement an environmental compliance plan. Federal and international law requires that all ships comply with pollution regulations requiring the proper disposal of oily waste water and sludge by passing the oily waste through an oil-water separator (OWS) aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires the ship’s crew to record accurately in an oil record book (ORB) each transfer or disposal of oily waste water and sludge. These laws are designed to prevent pollution of ocean waters. During a regular inspection of the ship on March 29, 2010, in Morehead City, N.C., an oiler with the engine crew passed a note to a U.S. Coast Guard inspector. The handwritten note stated: "GOOD MORNING SIR, I WOULD LIKE TO LET YOU KNOW THIS SHIP DISCHARGING BILGE ILEGALLY USING BY MAGIC PIPE, IF YOU WANT TO KNOW ILLEGAL PIPE THERE IN WORKSHOP FIVE METERS LONG WITH RUBBER. SIR, I HOPE IF YOU DON’T MIND. WE HAVE A SECURITY FOR OUR SAFETY." (spelling and grammar errors in original). The oiler informed a member of Coast Guard boarding team that the "magic pipe" was located in the workshop in the engine department. The subsequent investigation revealed that from September 2009, through March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using the pipe that by-passed the OWS on several occasions, up to 10 times according to some crew members. On March 18, 2010, the chief engineer, Vaja Sikharulidze, ordered the engine department crew members, through the second engineer, to by-pass the OWS and discharge oil-contaminated bilge waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. Sikharulidze has acknowledged making false entries in the oil record book to hide the true amount of oil-contaminated bilge waste that was stored in a certain tank aboard the ship. The chief engineer stated that in order to hide the by-pass of over 70 cubic meters, he had to enter incorrect information in the ORB preceding the discharge. Sikharulidze further admitted that transfer entries in the ORB from on or about March 6, 2010, through March 17, 2010, were false. He indicated he was continuing the practice of false entries made by the prior chief engineer for that particular tank. He explained that the prior chief engineer indicated in the ORB that a particular bilge tank contained 24 cubic meters of waste when, in fact, it contained 60 to 65 cubic meter of waste. In order to avoid bringing attention to the false entries, the chief engineer continued the practice of making false entries. Last month, Sikharulidze, 59, pleaded guilty to violating the APPS. "Owners and operators of sea-going vessels who intentionally violate the law by polluting and falsifying records will be prosecuted by the Department of Justice," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The Federal government will continue to investigate and prosecute these types of violations to stop illegal discharges and protect the environment." "Pollution prevention acts were put in place to protect our natural resources. It is disheartening when we see companies and individuals knowingly and purposely dumping oil-contaminated waste into those resources. We will take violations of these acts very seriously, in order to protect our natural resources for future generations," stated George E. B. Holding, U.S. Attorney for the Eastern District of North Carolina. "As a steward of the environment, the Coast Guard enforces compliance with applicable laws," said Rear Adm. Wayne Justice, commander of the Coast Guard’s 5th District. "The criminal prosecution of violating companies is a significant deterrent for offending ships entering our ports. Cooperative efforts between state and federal agencies help preserve our natural resources, and protect those who rely on the marine environment for their livelihood." "The oceans must be protected from being used as dump sites for waste oil or other hazardous substances," said Maureen O’Mara, Special Agent-in-Charge of EPA’s criminal enforcement program in Atlanta. "This prosecution sends a clear message that companies that refuse to operate their vessels safely and lawfully and pollute our waters will be vigorously prosecuted." Investigation of this case was conducted by the U.S. Coast Guard and the Environmental Protection Agency with assistance from the FBI’s Computer Forensic Team. The case was jointly prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, June 7, 2010 Ship Management Firm Pleads Guilty and is Sentenced for Violating Federal Pollution Law WASHINGTON—Cooperative Success Maritime S.A., the operator of the M/T Chem Faros, a 21,145 gross-ton ocean-going cargo ship that regularly transported cargo between foreign ports and the United States, pleaded guilty and was sentenced today in federal court for violating the Act to Prevent Pollution from Ships (APPS), and to making material false statements, the Justice Department announced. U.S. District Court Judge James C. Dever III for the Eastern District of North Carolina sentenced the company to pay a $850,000 penalty of which $150,000 will be paid to the congressionally-created National Fish and Wildlife Fund as a community service payment. The judge also sentenced the company to serve five years of probation, during which time they will implement an environmental compliance plan. Federal and international law requires that all ships comply with pollution regulations requiring the proper disposal of oily waste water and sludge by passing the oily waste through an oil-water separator (OWS) aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires the ship’s crew to record accurately in an oil record book (ORB) each transfer or disposal of oily waste water and sludge. These laws are designed to prevent pollution of ocean waters. During a regular inspection of the ship on March 29, 2010, in Morehead City, N.C., an oiler with the engine crew passed a note to a U.S. Coast Guard inspector. The handwritten note stated: "GOOD MORNING SIR, I WOULD LIKE TO LET YOU KNOW THIS SHIP DISCHARGING BILGE ILEGALLY USING BY MAGIC PIPE, IF YOU WANT TO KNOW ILLEGAL PIPE THERE IN WORKSHOP FIVE METERS LONG WITH RUBBER. SIR, I HOPE IF YOU DON’T MIND. WE HAVE A SECURITY FOR OUR SAFETY." (spelling and grammar errors in original). The oiler informed a member of Coast Guard boarding team that the "magic pipe" was located in the workshop in the engine department. The subsequent investigation revealed that from September 2009, through March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using the pipe that by-passed the OWS on several occasions, up to 10 times according to some crew members. On March 18, 2010, the chief engineer, Vaja Sikharulidze, ordered the engine department crew members, through the second engineer, to by-pass the OWS and discharge oil-contaminated bilge waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. Sikharulidze has acknowledged making false entries in the oil record book to hide the true amount of oil-contaminated bilge waste that was stored in a certain tank aboard the ship. The chief engineer stated that in order to hide the by-pass of over 70 cubic meters, he had to enter incorrect information in the ORB preceding the discharge. Sikharulidze further admitted that transfer entries in the ORB from on or about March 6, 2010, through March 17, 2010, were false. He indicated he was continuing the practice of false entries made by the prior chief engineer for that particular tank. He explained that the prior chief engineer indicated in the ORB that a particular bilge tank contained 24 cubic meters of waste when, in fact, it contained 60 to 65 cubic meter of waste. In order to avoid bringing attention to the false entries, the chief engineer continued the practice of making false entries. Last month, Sikharulidze, 59, pleaded guilty to violating the APPS. "Owners and operators of sea-going vessels who intentionally violate the law by polluting and falsifying records will be prosecuted by the Department of Justice," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The Federal government will continue to investigate and prosecute these types of violations to stop illegal discharges and protect the environment." "Pollution prevention acts were put in place to protect our natural resources. It is disheartening when we see companies and individuals knowingly and purposely dumping oil-contaminated waste into those resources. We will take violations of these acts very seriously, in order to protect our natural resources for future generations," stated George E. B. Holding, U.S. Attorney for the Eastern District of North Carolina. "As a steward of the environment, the Coast Guard enforces compliance with applicable laws," said Rear Adm. Wayne Justice, commander of the Coast Guard’s 5th District. "The criminal prosecution of violating companies is a significant deterrent for offending ships entering our ports. Cooperative efforts between state and federal agencies help preserve our natural resources, and protect those who rely on the marine environment for their livelihood." "The oceans must be protected from being used as dump sites for waste oil or other hazardous substances," said Maureen O’Mara, Special Agent-in-Charge of EPA’s criminal enforcement program in Atlanta. "This prosecution sends a clear message that companies that refuse to operate their vessels safely and lawfully and pollute our waters will be vigorously prosecuted." Investigation of this case was conducted by the U.S. Coast Guard and the Environmental Protection Agency with assistance from the FBI’s Computer Forensic Team. The case was jointly prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
August 17, 2010
Sikharulidze was sentenced to 12 months probation to include 7 days of home detention, which reflected a sentence reduction based upon his substantial cooperation in the investigation.
Eastern District of North Carolina
FOR IMMEDIATE RELEASE
August 17, 2010 CARGO SHIPS’ CHIEF ENGINEER SENTENCED FOR VIOLATING POLLUTION PREVENTION ACT RALEIGH - United States Attorney George E.B. Holding announced that in federal court today United States District Judge James C. Dever III, sentenced VAJA SIKHARULIDZE, a citizen of Georgia, to one-year probation to include seven days of home detention, which reflected a sentence reduction based upon his substantial cooperation in the investigation. A Criminal Information was filed on April 23, 2010. SIKHARULIDZE pled guilty on May 3, 2010 to violating the Act to Prevent Pollution from Ships (APPS), in violation of Title 33, United States Code, Sections 1901, et. seq. SIKHARULIDZE, 59, was the Chief Engineer of the Motor Tanker Chem Faros, a 21,145 gross-ton ocean-going cargo ship. The ship was operated by Cooperative Success Maritime SA and regularly transported cargo between various ports in Asia and the United States, to include Morehead City, North Carolina. Consistent with requirements in the APPS regulations, a vessel other than an oil tanker, must maintain a record known as an Oil Record Book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the Oily Water Separator (OWS), which is used to separate the water from the oil and other wastes, and the effluent contains 15 parts per million or less of oil. The investigation revealed that from March 4, 2010, through March 29, 2010, SIKHARULIDZE, who had overall responsibility for the Engine Department, failed to maintain an accurate Oil Record Book for the disposals of oil residue and discharges overboard and disposals of oily sludges, oily mixtures, slops from bilges and bilge water that accumulated in machinery spaces. Specifically, the Oil Record Book failed to show discharges of oil-contaminated waste made without the use of the ship’s pollution prevention equipment. Further, from September, 2009, until March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using a pipe that by-passed the OWS. On at least one occasion between March 4, 2010, and March 29, 2010, SIKHARULIDZE directed subordinate crew members to by-pass the ships’ OWS and pump oil-contaminated waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. As a result of SIKHARULIDZE’s cooperation, Cooperative Success Maritime, the operator of the M/T Chem Faros, pled guilty to violations of the Act to Prevent Pollution from Ships and to making material false statements. The company was ordered to pay a monetary penalty of $850,000 and implement an environmental compliance plan. “Over the last 30 years we have come to realize the importance of our natural resources. Pollution prevention acts, such as the one that has been violated, were put in place to protect these resources. We will prosecute such violations aggressively in order to protect these precious resources for future generations,” stated Mr. Holding. "This case is an example of the Coast Guard and the Department of Justice working together to enforce the laws that protect our marine environment," said Rear Adm. Dean Lee, Coast Guard 5th District commander. "I credit the efforts of our investigators, and those of the Department of Justice's Environmental Crimes Section, in holding the responsible parties accountable." "Mr. Sikharulidze and Cooperative Success Maritime used the oceans as dumping grounds for oily wastes, rather than treating and disposing of them safely and legally," said Maureen O'Mara, Special Agent-in-Charge of EPA's criminal enforcement office in Atlanta. "This prosecution show that individuals - - as well as companies - - who enter our country and then disregard our Nation's environmental laws and natural resources will be held accountable for their actions and prosecute to the fullest extent of the law." Investigation of this case was conducted by the United States Coast Guard and the Environmental Protection Agency with assistance from the Federal Bureau of Investigation Computer Forensic Team. Assistant United States Attorney Banumathi Rangarajan and Trial Attorney Shennie Patel with the Department of Justice Environmental Crimes Section represented the government.
Eastern District of North Carolina
FOR IMMEDIATE RELEASE
August 17, 2010 CARGO SHIPS’ CHIEF ENGINEER SENTENCED FOR VIOLATING POLLUTION PREVENTION ACT RALEIGH - United States Attorney George E.B. Holding announced that in federal court today United States District Judge James C. Dever III, sentenced VAJA SIKHARULIDZE, a citizen of Georgia, to one-year probation to include seven days of home detention, which reflected a sentence reduction based upon his substantial cooperation in the investigation. A Criminal Information was filed on April 23, 2010. SIKHARULIDZE pled guilty on May 3, 2010 to violating the Act to Prevent Pollution from Ships (APPS), in violation of Title 33, United States Code, Sections 1901, et. seq. SIKHARULIDZE, 59, was the Chief Engineer of the Motor Tanker Chem Faros, a 21,145 gross-ton ocean-going cargo ship. The ship was operated by Cooperative Success Maritime SA and regularly transported cargo between various ports in Asia and the United States, to include Morehead City, North Carolina. Consistent with requirements in the APPS regulations, a vessel other than an oil tanker, must maintain a record known as an Oil Record Book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the Oily Water Separator (OWS), which is used to separate the water from the oil and other wastes, and the effluent contains 15 parts per million or less of oil. The investigation revealed that from March 4, 2010, through March 29, 2010, SIKHARULIDZE, who had overall responsibility for the Engine Department, failed to maintain an accurate Oil Record Book for the disposals of oil residue and discharges overboard and disposals of oily sludges, oily mixtures, slops from bilges and bilge water that accumulated in machinery spaces. Specifically, the Oil Record Book failed to show discharges of oil-contaminated waste made without the use of the ship’s pollution prevention equipment. Further, from September, 2009, until March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using a pipe that by-passed the OWS. On at least one occasion between March 4, 2010, and March 29, 2010, SIKHARULIDZE directed subordinate crew members to by-pass the ships’ OWS and pump oil-contaminated waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. As a result of SIKHARULIDZE’s cooperation, Cooperative Success Maritime, the operator of the M/T Chem Faros, pled guilty to violations of the Act to Prevent Pollution from Ships and to making material false statements. The company was ordered to pay a monetary penalty of $850,000 and implement an environmental compliance plan. “Over the last 30 years we have come to realize the importance of our natural resources. Pollution prevention acts, such as the one that has been violated, were put in place to protect these resources. We will prosecute such violations aggressively in order to protect these precious resources for future generations,” stated Mr. Holding. "This case is an example of the Coast Guard and the Department of Justice working together to enforce the laws that protect our marine environment," said Rear Adm. Dean Lee, Coast Guard 5th District commander. "I credit the efforts of our investigators, and those of the Department of Justice's Environmental Crimes Section, in holding the responsible parties accountable." "Mr. Sikharulidze and Cooperative Success Maritime used the oceans as dumping grounds for oily wastes, rather than treating and disposing of them safely and legally," said Maureen O'Mara, Special Agent-in-Charge of EPA's criminal enforcement office in Atlanta. "This prosecution show that individuals - - as well as companies - - who enter our country and then disregard our Nation's environmental laws and natural resources will be held accountable for their actions and prosecute to the fullest extent of the law." Investigation of this case was conducted by the United States Coast Guard and the Environmental Protection Agency with assistance from the Federal Bureau of Investigation Computer Forensic Team. Assistant United States Attorney Banumathi Rangarajan and Trial Attorney Shennie Patel with the Department of Justice Environmental Crimes Section represented the government.
May 5, 2010
CSM was charged in an Information, with one count of making false statements, a violation of 18 U.S.C. 1001(a)(3) and one count of violating MARPOL {33 U.S.C. 1908(a) }.
June 7, 2010
CSM pled guilty to the two counts and was sentenced to 60 months probation and ordered to pay a $700,000 federal fine.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, June 7, 2010 Ship Management Firm Pleads Guilty and is Sentenced for Violating Federal Pollution Law WASHINGTON—Cooperative Success Maritime S.A., the operator of the M/T Chem Faros, a 21,145 gross-ton ocean-going cargo ship that regularly transported cargo between foreign ports and the United States, pleaded guilty and was sentenced today in federal court for violating the Act to Prevent Pollution from Ships (APPS), and to making material false statements, the Justice Department announced. U.S. District Court Judge James C. Dever III for the Eastern District of North Carolina sentenced the company to pay a $850,000 penalty of which $150,000 will be paid to the congressionally-created National Fish and Wildlife Fund as a community service payment. The judge also sentenced the company to serve five years of probation, during which time they will implement an environmental compliance plan. Federal and international law requires that all ships comply with pollution regulations requiring the proper disposal of oily waste water and sludge by passing the oily waste through an oil-water separator (OWS) aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires the ship’s crew to record accurately in an oil record book (ORB) each transfer or disposal of oily waste water and sludge. These laws are designed to prevent pollution of ocean waters. During a regular inspection of the ship on March 29, 2010, in Morehead City, N.C., an oiler with the engine crew passed a note to a U.S. Coast Guard inspector. The handwritten note stated: "GOOD MORNING SIR, I WOULD LIKE TO LET YOU KNOW THIS SHIP DISCHARGING BILGE ILEGALLY USING BY MAGIC PIPE, IF YOU WANT TO KNOW ILLEGAL PIPE THERE IN WORKSHOP FIVE METERS LONG WITH RUBBER. SIR, I HOPE IF YOU DON’T MIND. WE HAVE A SECURITY FOR OUR SAFETY." (spelling and grammar errors in original). The oiler informed a member of Coast Guard boarding team that the "magic pipe" was located in the workshop in the engine department. The subsequent investigation revealed that from September 2009, through March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using the pipe that by-passed the OWS on several occasions, up to 10 times according to some crew members. On March 18, 2010, the chief engineer, Vaja Sikharulidze, ordered the engine department crew members, through the second engineer, to by-pass the OWS and discharge oil-contaminated bilge waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. Sikharulidze has acknowledged making false entries in the oil record book to hide the true amount of oil-contaminated bilge waste that was stored in a certain tank aboard the ship. The chief engineer stated that in order to hide the by-pass of over 70 cubic meters, he had to enter incorrect information in the ORB preceding the discharge. Sikharulidze further admitted that transfer entries in the ORB from on or about March 6, 2010, through March 17, 2010, were false. He indicated he was continuing the practice of false entries made by the prior chief engineer for that particular tank. He explained that the prior chief engineer indicated in the ORB that a particular bilge tank contained 24 cubic meters of waste when, in fact, it contained 60 to 65 cubic meter of waste. In order to avoid bringing attention to the false entries, the chief engineer continued the practice of making false entries. Last month, Sikharulidze, 59, pleaded guilty to violating the APPS. "Owners and operators of sea-going vessels who intentionally violate the law by polluting and falsifying records will be prosecuted by the Department of Justice," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The Federal government will continue to investigate and prosecute these types of violations to stop illegal discharges and protect the environment." "Pollution prevention acts were put in place to protect our natural resources. It is disheartening when we see companies and individuals knowingly and purposely dumping oil-contaminated waste into those resources. We will take violations of these acts very seriously, in order to protect our natural resources for future generations," stated George E. B. Holding, U.S. Attorney for the Eastern District of North Carolina. "As a steward of the environment, the Coast Guard enforces compliance with applicable laws," said Rear Adm. Wayne Justice, commander of the Coast Guard’s 5th District. "The criminal prosecution of violating companies is a significant deterrent for offending ships entering our ports. Cooperative efforts between state and federal agencies help preserve our natural resources, and protect those who rely on the marine environment for their livelihood." "The oceans must be protected from being used as dump sites for waste oil or other hazardous substances," said Maureen O’Mara, Special Agent-in-Charge of EPA’s criminal enforcement program in Atlanta. "This prosecution sends a clear message that companies that refuse to operate their vessels safely and lawfully and pollute our waters will be vigorously prosecuted." Investigation of this case was conducted by the U.S. Coast Guard and the Environmental Protection Agency with assistance from the FBI’s Computer Forensic Team. The case was jointly prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, June 7, 2010 Ship Management Firm Pleads Guilty and is Sentenced for Violating Federal Pollution Law WASHINGTON—Cooperative Success Maritime S.A., the operator of the M/T Chem Faros, a 21,145 gross-ton ocean-going cargo ship that regularly transported cargo between foreign ports and the United States, pleaded guilty and was sentenced today in federal court for violating the Act to Prevent Pollution from Ships (APPS), and to making material false statements, the Justice Department announced. U.S. District Court Judge James C. Dever III for the Eastern District of North Carolina sentenced the company to pay a $850,000 penalty of which $150,000 will be paid to the congressionally-created National Fish and Wildlife Fund as a community service payment. The judge also sentenced the company to serve five years of probation, during which time they will implement an environmental compliance plan. Federal and international law requires that all ships comply with pollution regulations requiring the proper disposal of oily waste water and sludge by passing the oily waste through an oil-water separator (OWS) aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires the ship’s crew to record accurately in an oil record book (ORB) each transfer or disposal of oily waste water and sludge. These laws are designed to prevent pollution of ocean waters. During a regular inspection of the ship on March 29, 2010, in Morehead City, N.C., an oiler with the engine crew passed a note to a U.S. Coast Guard inspector. The handwritten note stated: "GOOD MORNING SIR, I WOULD LIKE TO LET YOU KNOW THIS SHIP DISCHARGING BILGE ILEGALLY USING BY MAGIC PIPE, IF YOU WANT TO KNOW ILLEGAL PIPE THERE IN WORKSHOP FIVE METERS LONG WITH RUBBER. SIR, I HOPE IF YOU DON’T MIND. WE HAVE A SECURITY FOR OUR SAFETY." (spelling and grammar errors in original). The oiler informed a member of Coast Guard boarding team that the "magic pipe" was located in the workshop in the engine department. The subsequent investigation revealed that from September 2009, through March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using the pipe that by-passed the OWS on several occasions, up to 10 times according to some crew members. On March 18, 2010, the chief engineer, Vaja Sikharulidze, ordered the engine department crew members, through the second engineer, to by-pass the OWS and discharge oil-contaminated bilge waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. Sikharulidze has acknowledged making false entries in the oil record book to hide the true amount of oil-contaminated bilge waste that was stored in a certain tank aboard the ship. The chief engineer stated that in order to hide the by-pass of over 70 cubic meters, he had to enter incorrect information in the ORB preceding the discharge. Sikharulidze further admitted that transfer entries in the ORB from on or about March 6, 2010, through March 17, 2010, were false. He indicated he was continuing the practice of false entries made by the prior chief engineer for that particular tank. He explained that the prior chief engineer indicated in the ORB that a particular bilge tank contained 24 cubic meters of waste when, in fact, it contained 60 to 65 cubic meter of waste. In order to avoid bringing attention to the false entries, the chief engineer continued the practice of making false entries. Last month, Sikharulidze, 59, pleaded guilty to violating the APPS. "Owners and operators of sea-going vessels who intentionally violate the law by polluting and falsifying records will be prosecuted by the Department of Justice," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The Federal government will continue to investigate and prosecute these types of violations to stop illegal discharges and protect the environment." "Pollution prevention acts were put in place to protect our natural resources. It is disheartening when we see companies and individuals knowingly and purposely dumping oil-contaminated waste into those resources. We will take violations of these acts very seriously, in order to protect our natural resources for future generations," stated George E. B. Holding, U.S. Attorney for the Eastern District of North Carolina. "As a steward of the environment, the Coast Guard enforces compliance with applicable laws," said Rear Adm. Wayne Justice, commander of the Coast Guard’s 5th District. "The criminal prosecution of violating companies is a significant deterrent for offending ships entering our ports. Cooperative efforts between state and federal agencies help preserve our natural resources, and protect those who rely on the marine environment for their livelihood." "The oceans must be protected from being used as dump sites for waste oil or other hazardous substances," said Maureen O’Mara, Special Agent-in-Charge of EPA’s criminal enforcement program in Atlanta. "This prosecution sends a clear message that companies that refuse to operate their vessels safely and lawfully and pollute our waters will be vigorously prosecuted." Investigation of this case was conducted by the U.S. Coast Guard and the Environmental Protection Agency with assistance from the FBI’s Computer Forensic Team. The case was jointly prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
August 17, 2010
Sikharulidze was sentenced to 12 months probation to include 7 days of home detention, which reflected a sentence reduction based upon his substantial cooperation in the investigation.
Eastern District of North Carolina
FOR IMMEDIATE RELEASE
August 17, 2010 CARGO SHIPS’ CHIEF ENGINEER SENTENCED FOR VIOLATING POLLUTION PREVENTION ACT RALEIGH - United States Attorney George E.B. Holding announced that in federal court today United States District Judge James C. Dever III, sentenced VAJA SIKHARULIDZE, a citizen of Georgia, to one-year probation to include seven days of home detention, which reflected a sentence reduction based upon his substantial cooperation in the investigation. A Criminal Information was filed on April 23, 2010. SIKHARULIDZE pled guilty on May 3, 2010 to violating the Act to Prevent Pollution from Ships (APPS), in violation of Title 33, United States Code, Sections 1901, et. seq. SIKHARULIDZE, 59, was the Chief Engineer of the Motor Tanker Chem Faros, a 21,145 gross-ton ocean-going cargo ship. The ship was operated by Cooperative Success Maritime SA and regularly transported cargo between various ports in Asia and the United States, to include Morehead City, North Carolina. Consistent with requirements in the APPS regulations, a vessel other than an oil tanker, must maintain a record known as an Oil Record Book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the Oily Water Separator (OWS), which is used to separate the water from the oil and other wastes, and the effluent contains 15 parts per million or less of oil. The investigation revealed that from March 4, 2010, through March 29, 2010, SIKHARULIDZE, who had overall responsibility for the Engine Department, failed to maintain an accurate Oil Record Book for the disposals of oil residue and discharges overboard and disposals of oily sludges, oily mixtures, slops from bilges and bilge water that accumulated in machinery spaces. Specifically, the Oil Record Book failed to show discharges of oil-contaminated waste made without the use of the ship’s pollution prevention equipment. Further, from September, 2009, until March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using a pipe that by-passed the OWS. On at least one occasion between March 4, 2010, and March 29, 2010, SIKHARULIDZE directed subordinate crew members to by-pass the ships’ OWS and pump oil-contaminated waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. As a result of SIKHARULIDZE’s cooperation, Cooperative Success Maritime, the operator of the M/T Chem Faros, pled guilty to violations of the Act to Prevent Pollution from Ships and to making material false statements. The company was ordered to pay a monetary penalty of $850,000 and implement an environmental compliance plan. “Over the last 30 years we have come to realize the importance of our natural resources. Pollution prevention acts, such as the one that has been violated, were put in place to protect these resources. We will prosecute such violations aggressively in order to protect these precious resources for future generations,” stated Mr. Holding. "This case is an example of the Coast Guard and the Department of Justice working together to enforce the laws that protect our marine environment," said Rear Adm. Dean Lee, Coast Guard 5th District commander. "I credit the efforts of our investigators, and those of the Department of Justice's Environmental Crimes Section, in holding the responsible parties accountable." "Mr. Sikharulidze and Cooperative Success Maritime used the oceans as dumping grounds for oily wastes, rather than treating and disposing of them safely and legally," said Maureen O'Mara, Special Agent-in-Charge of EPA's criminal enforcement office in Atlanta. "This prosecution show that individuals - - as well as companies - - who enter our country and then disregard our Nation's environmental laws and natural resources will be held accountable for their actions and prosecute to the fullest extent of the law." Investigation of this case was conducted by the United States Coast Guard and the Environmental Protection Agency with assistance from the Federal Bureau of Investigation Computer Forensic Team. Assistant United States Attorney Banumathi Rangarajan and Trial Attorney Shennie Patel with the Department of Justice Environmental Crimes Section represented the government.
Eastern District of North Carolina
FOR IMMEDIATE RELEASE
August 17, 2010 CARGO SHIPS’ CHIEF ENGINEER SENTENCED FOR VIOLATING POLLUTION PREVENTION ACT RALEIGH - United States Attorney George E.B. Holding announced that in federal court today United States District Judge James C. Dever III, sentenced VAJA SIKHARULIDZE, a citizen of Georgia, to one-year probation to include seven days of home detention, which reflected a sentence reduction based upon his substantial cooperation in the investigation. A Criminal Information was filed on April 23, 2010. SIKHARULIDZE pled guilty on May 3, 2010 to violating the Act to Prevent Pollution from Ships (APPS), in violation of Title 33, United States Code, Sections 1901, et. seq. SIKHARULIDZE, 59, was the Chief Engineer of the Motor Tanker Chem Faros, a 21,145 gross-ton ocean-going cargo ship. The ship was operated by Cooperative Success Maritime SA and regularly transported cargo between various ports in Asia and the United States, to include Morehead City, North Carolina. Consistent with requirements in the APPS regulations, a vessel other than an oil tanker, must maintain a record known as an Oil Record Book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the Oily Water Separator (OWS), which is used to separate the water from the oil and other wastes, and the effluent contains 15 parts per million or less of oil. The investigation revealed that from March 4, 2010, through March 29, 2010, SIKHARULIDZE, who had overall responsibility for the Engine Department, failed to maintain an accurate Oil Record Book for the disposals of oil residue and discharges overboard and disposals of oily sludges, oily mixtures, slops from bilges and bilge water that accumulated in machinery spaces. Specifically, the Oil Record Book failed to show discharges of oil-contaminated waste made without the use of the ship’s pollution prevention equipment. Further, from September, 2009, until March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using a pipe that by-passed the OWS. On at least one occasion between March 4, 2010, and March 29, 2010, SIKHARULIDZE directed subordinate crew members to by-pass the ships’ OWS and pump oil-contaminated waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean. As a result of SIKHARULIDZE’s cooperation, Cooperative Success Maritime, the operator of the M/T Chem Faros, pled guilty to violations of the Act to Prevent Pollution from Ships and to making material false statements. The company was ordered to pay a monetary penalty of $850,000 and implement an environmental compliance plan. “Over the last 30 years we have come to realize the importance of our natural resources. Pollution prevention acts, such as the one that has been violated, were put in place to protect these resources. We will prosecute such violations aggressively in order to protect these precious resources for future generations,” stated Mr. Holding. "This case is an example of the Coast Guard and the Department of Justice working together to enforce the laws that protect our marine environment," said Rear Adm. Dean Lee, Coast Guard 5th District commander. "I credit the efforts of our investigators, and those of the Department of Justice's Environmental Crimes Section, in holding the responsible parties accountable." "Mr. Sikharulidze and Cooperative Success Maritime used the oceans as dumping grounds for oily wastes, rather than treating and disposing of them safely and legally," said Maureen O'Mara, Special Agent-in-Charge of EPA's criminal enforcement office in Atlanta. "This prosecution show that individuals - - as well as companies - - who enter our country and then disregard our Nation's environmental laws and natural resources will be held accountable for their actions and prosecute to the fullest extent of the law." Investigation of this case was conducted by the United States Coast Guard and the Environmental Protection Agency with assistance from the Federal Bureau of Investigation Computer Forensic Team. Assistant United States Attorney Banumathi Rangarajan and Trial Attorney Shennie Patel with the Department of Justice Environmental Crimes Section represented the government.
STATUTE:
- Act to Prevent Pollution from Ships (APPS)