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Million dollar faine for dumping of oily waste at sea

The companies that own and operate the "Gallia Graeca" were sentenced in U.S. District Court in Seattle last week to a $1.3 million fine for the dumping of oily waste at sea. The ship operator, Angelakos (Hellas) S.A., and the ship owner, Gallia Graeca Shipping Ltd., were found guilty in June 2016 of violating the Act to Prevent Pollution from Ships, falsification of records in a federal investigation, and engaging in a scheme to defraud the United States. U.S. District Judge John C. Coughenour hoped the sanctions “would resonate and cause other companies to pause when they think about creating a corporate culture that encourages deception. "These companies promoted a culture of lies and lawlessness that left a trail of pollution in the Pacific Ocean,” said U.S. Attorney Annette L. Hayes. “Knowing that the Coast Guard was going to do an inspection of their shipping vessel, corporate managers allowed the chief engineer to present falsified documents. The significant fines imposed in this case send a clear message that those who spoil our environment by putting their business interests ahead of our laws will be held responsible.” The "Gallia Graeca" sailed from China to Seattle in Oct 2015. During the voyage, an oil water separator was inoperable. On October 16, 26, and 27, the defendants discharged 5,000 gallons of oily bilge water overboard. The defendants concealed these incidents from the Coast Guard by making false statements to inspectors, and making false statements and omissions in the ship’s oil record book. When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not. Records indicated the oil water separator had not been serviced for months prior to the voyage from China. The defendants presented the Coast Guard with an official oil record book stating that bilge water had not been discharged during the voyage to Seattle. However, the Coast Guard investigation discovered evidence that oily water had been discharged into the sea three times on its voyage from China. The companies were placed on five years of probation and required to have environmental compliance plans in place which will ensure they are abiding by anti-pollution policies and regulations. In addition to the $1.3 million fine, Judge Coughenour ordered a $200,000 community service payment to be shared between the National Fish and Wildlife Foundation and the National Parks Foundation. The two engineers who operated the ship’s equipment and falsified the log books were sentenced to short prison terms before returning to Greece.

Feds: Seattle-bound ship’s owner must pay for oily cover-up

A Greek shipping magnate is expected to learn Friday how much he’ll have to cough up for dumping thousands of gallons of oily water into the Pacific Ocean as his crews tried to hide the mess. In line with the Watergate axiom, it’s not the crime but the cover-up that will cost the owner of the M/V Gallia Graeca. U.S. Coast Guard inspectors in Seattle found that the great grain hauler had been dumping soiled water into the sea as it made its way to Puget Sound from China. They also found that two engineers had lied about the pollution as a favor to the Cyprus-flagged ship’s corporate owners, firms that prosecutors say belong to Greek shipping magnate Evangelos Angelakos. The ship’s owners denied any responsibility for the pollution and the failed cover-up attempt. A jury found their denials wanting, though, and federal prosecutors are now poised to ask a U.S. District Court judge to fine the firms $3 million. “The evidence at trial demonstrated these incidents were not accidents,” Assistant U.S. Attorneys Seth Wilkinson and Matthew Diggs said in court papers. http://www.seattlepi.com/local/crime/article/Feds-Seattle-bound-ship-s-owner-must-pay-for-10007996.php

Owner company convicted of oil waste dumping

The companies that own and operate the "Gallia Graeca" and two engineers from the ship were convicted on June 20, 2016, in U.S. District Court in Seattle of 12 felony counts related to their dumping of oily waste at sea. The ship operator, Angelakos Hellas S.A., the ship owner, Gallia Graeca Shipping LTD, the chief engineer, Konstantinos Chrysovergis and the second engineer, Tryfon Angelou were found guilty of violating the Act to Prevent Pollution from Ships, the falsification of records in a federal investigation and engaging in a scheme to defraud the United States. The jury deliberated for three days following an eight-day jury trial. U.S. District Judge John C. Coughenour scheduled sentencing for Sep 16, 2016. According to records filed in the case and testimony at trial, the"Gallia Graeca" traveled from China to Seattle in Oct 2015. During the voyage, a pollution-control device known as an oil water separator was inoperable. On October 16, 26 and 27, 2015, the defendants bypassed safeguards that prevent the discharge of oily water and discharged approximately 5,000 gallons of oily bilge water overboard. The defendants concealed these incidents from the Coast Guard by making false statements to inspectors, and making false statements and omissions in the ship’s oil record book. When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not. When Coast Guard inspectors examined the oil water separator they found its filters were clogged with oil and found oil residue in the overboard discharge piping. Records indicated the oil water separator had not been serviced for months prior to the voyage from China. According to the official oil record book presented to the Coast Guard, bilge water had not been discharged during the voyage to Seattle. However, the Coast Guard investigation discovered evidence that oily water had been discharged into the sea three times on its voyage from China. Calling it a voyage of deception and pollution, prosecutors argued that the engineers tried to hide the pollution from the Coast Guard to avoid having the ship detained in Seattle. Keeping the ship on schedule was a benefit to the owners and operators who had a contract to move $25 million in goods out of Seattle. Shipping company executives had been in contact with the engineers about how they should present the log book for the Coast Guard inspection. Falsification of records in a federal investigation is punishable by up to 20 years in prison. Violating the Act to Prevent Pollution from Ships is punishable by up to six years of imprisonment. Scheming to defraud the United States is punishable by up to five years in prison. Each count of conviction is also punishable by a $500,000 fine against each corporation and $250,000 against each individual defendant. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs, and by Special Assistant Attorney Stephen Bor. Bor is an attorney with the United States Coast Guard specially appointed to prosecute criminal cases in federal court. The case is being investigated by the U.S. Coast Guard and the Environmental Protection Agency Criminal Investigation Division. Report with photo: http://www.uscgnews.com/go/doc/4007/2857046/