OMI Ordered to Pay $4.2M

Monday, August 09, 2004
Thomas L. Sansonetti, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, and Christopher J. Christie, U.S. Attorney for the District of New Jersey, announced that a Connecticut-based shipping company that transports petroleum products in the United States and abroad was sentenced to pay $4.2 million for illegally concealing the dumping of thousands of gallons of waste oil and sludge at sea.

U.S. District Judge Katharine S. Hayden ordered OMI Corporation, to pay a $4.2 million fine and serve three years of probation. Judge Hayden also awarded $2.1 million of the fine to a former OMI crew member who reported the crimes to the government. The reward, issued under a bounty provision in the Act to Prevent Pollution from Ships, is the largest ever, which allows the Court to award up to ½ of the criminal fine to those providing information leading to conviction.

In pleading guilty, OMI admitted that it had deliberately discharged waste oil, sludge and oily-water mixtures directly overboard from the oil tanker Guadalupe without the use of required pollution prevention equipment known as an Oil Water Separator. The Oil Water Separator is designed to separate out harmful quantities of oil so that they could be incinerated on the ship or properly disposed on shore. Instead, the company intentionally polluted by circumventing this key equipment with the use of a bypass hose.

The deliberate discharges were then concealed in a false and fictitious Oil Record Book, a required log in which all overboard discharges must be accurately recorded and which is regularly inspected by the U.S. Coast Guard.

The government learned about OMI’s criminal conduct from an individual who once served as a member of the engine room department on the Guadalupe. In September, 2001, when the ship arrived in Carteret, New Jersey, the ship’s 2nd Engineer walked off the ship and directly to the local police department where he reported that he was being ordered to engage in criminal activity. At sentencing, prosecutors informed the Court that the crew member had risked his career with OMI and the industry in coming forward and qualified for an award under the statute.

“This case should send a message that polluting our environment and lying to the government will not be tolerated,” said Tom Sansonetti, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.

“This prosecution demonstrates the continuing commitment of the United States Attorney’s Office to aggressively prosecute environmental crimes,” said Christopher J. Christie, U.S. Attorney for the District of New Jersey.

The ship’s Captain, Ashok Kumar, and Chief Engineer, Elangovan Mani, have also pled guilty and are awaiting sentencing.

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Court: Japan's Mitsui Paid to Release Ship

China Supreme Court says Mitsui pays about $29 mln; Ship released about 0030 GMT Thursday. Ship was seized over dispute dating back to 1930s. Advisor to plaintiffs says will likely demand more money.

Lawyer: Korea Ferry Owners Accept Responsibilities

The family that has a major stake in companies that control the shipping operator whose ferry sank last week, likely to have killed hundreds, will take social and

Mitsui O.S.K. Ship Ready To Leave Chinese Port

Japanese shipping firm Mitsui O.S.K. Lines Ltd said on Thursday that its ship, the "Baosteel Emotion" 226,434 deadweight-tonne ore carrier, is ready to leave

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pipelines Pod Propulsion Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0909 sec (11 req/sec)