Office Of The Inspector General News

Florida-Based Sea Star Line LLC Agrees to Plead Guilty and Its Former President Is Indicted for Price Fixing on Coastal Freight Services Between the Continental United States and Puerto Rico Sea Star Line Also Agrees to Pay $14.2 Million Criminal Fine. Sea Star Line LLC has agreed today to plead guilty and to pay a $14.2 million criminal fine for its role in a conspiracy to fix prices in the coastal water freight transportation industry, the Department of Justice announced. Additionally…

WASHINGTON - The United States has filed suit in U.S. District Court in Washington, D.C., against Bollinger Shipyards Inc., Bollinger Shipyards Lockport LLC and Halter Bollinger Joint Venture LLC, the Justice Department announced. The suit alleges that Bollinger, which is headquartered in Lockport, La., made material false statements to the Coast Guard under the Deepwater Program. The government’s complaint alleges that Bollinger proposed to convert existing 110-Ft Patrol Boats (WPBs) into 123-Ft WPBs by extending the hulls 13 feet and making additional improvements. As a result of Bollinger’s misrepresentations about the hull strength of the converted vessels, the Coast Guard awarded a contract to convert eight Coast Guard 110 foot cutters to 123 foot cutters.

On September 14, 2010, the Department of Homeland Security Office of the Inspector General posted its much anticipated report addressing the very serious allegations of misconduct made against the U.S. Coast Guard’s Administrative Law Judge (ALJ) system by former ALJ Jeffie J. Massey. In short, the Inspector General’s office concluded that it “was not able to substantiate” Judge Massey’s allegations against her former superior, Chief ALJ Joseph N. Ingolia, and numerous members of his staff, members of the ALJ Docketing staff, members of the Coast Guard Commandant’s staff and several USCG Investigating Officers who were involved in cases then pending before Judge Massey.

The U.S. Government Accountability Office released a report Friday detailing its findings following a review of the Coast Guard's Administrative Law Judge Program that was requested by Congress and welcomed by the Coast Guard. The GAO conducted an independent and objective review of 1,675 suspension and revocation cases opened and closed by the Coast Guard from Nov. 10, 2005, through Sept. 30, 2008. •    Sixty two percent of suspension and revocation cases are disposed through settlement agreements between the Coast Guard and mariners. Click here to view or download a chart showing the disposition of all cases reviewed by the GAO. •    Roughly three percent, or just 45 cases, were disposed through a hearing before an Administrative Law Judge.

The Department of Homeland Security (DHS) Office of the Inspector General (OIG) issued the report of its examination of the DHS Plan for Implementing Secure Systems of Transportation. The report notes that the Department submitted its report to Congress two and one-half years late. The report addresses the status of a variety of DHS programs, including C-TPAT, CSI, ATS, ACE, SFI, ISPS, and MDA (the full names for all of these abbreviations are used in the report). OIG-09-03 (11/21/08). (Source: Holland & Knight)

The U.S. Coast Guard said it will temporarily stop its review and suspend its pursuit of a $96.1m refund for faulty ships built by Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC), pending a Justice Department investigation. The Justice Department and the Department of Homeland Security Office of the Inspector General are investigating the Coast Guard's Deepwater contracts, including the eight, 123-ft. patrol boats found to have structural problems, the AP reported. The Coast Guard will continue to provide documents and technical support to assist the government's investigation. The latest move signals a shift by the Coast Guard…

Congressman Elijah E. Cummings convened the Subcommittee on Coast Guard and Maritime Transportation to receive a report developed by the Department of Homeland Security’s Office of the Inspector General (OIG) on the circumstances surrounding the allision of the COSCO BUSAN with the San Francisco-Oakland Bay Bridge on November 7, 2007. This report was originally requested by the Speaker of the House of Representatives, Nancy Pelosi, and Chairman Cummings following a hearing of the Subcommittee convened in last November to begin examining this incident. “Among other results, the OIG found that five of the six individuals assigned as marine casualty investigators in Sector San Francisco were unqualified for these positions.

The Coast Guard and Maritime Transportation Subcommittee of the House Committee on Transportation and Infrastructure conducted an oversight hearing on the COSCO BUSAN incident and the USCG marine casualty investigation program. The Summary of Subject Matter focuses on the COSCO BUSAN incident and the ALASKA RANGER casualty in the Bering Sea. Rear Admiral Brian Salerno, US Coast Guard, testified about the marine casualty investigation program. He stated that the program generally works quite well, but that the program will be strengthened through addition of civilian positions and establishment of Centers of Expertise. Ms. Anne L. Richards…

President Bush’s fiscal year 2009 budget request for the Department of Homeland Security (DHS) represents $50.5 billion in funding, which is an increase of 6.8 percent over the 2008 fiscal year level – excluding funds provided in emergency supplemental funding. The request targets five areas, detailed in the following release of information from the DHS. The Department of Homeland Security’s main priority is to prevent terrorist attacks against the nation and to protect our nation from dangerous people. DHS will continue to prevent the entry of terrorists while facilitating the legitimate flow of people by strengthening border security efforts and continuing to gain effective control of America’s borders.

The U.S. Multi-Agency Strike Force Operation (MASFO) for the purpose of inspecting the transportation of intermodal containers to ensure compliance with various federal, state, and local regulations. “The Coast Guard is primarily checking containers for proper blocking and bracing of hazardous materials,” said Coast Guard Ensign Tony Migliorini, Director of Compliance and Security. Local police departments check drivers for proper driving credentials, search for contraband, and inspect trucks for safety regulations. Canines from both the Coast Guard and police departments will be used. U.S. Customs and Border Patrol, Federal Motor Carrier Safety Administration…

The Office of the Inspector General (OIG) of the Department of Transportation released a report stating that the Maritime Administration (MARAD) is required to reimburse the Department of Agriculture (USDA) for “excess” ocean freight costs that food assistance programs incur in order to comply with cargo preference statutes. There is a dispute between MARAD and USDA regarding how to calculate the amount owed. USDA recently billed MARAD $379 million in excess freight charges. OIG reviewed the billing in accordance with Government Auditing Standards and concludes that MARAD owes USDA a total of $164 million, rather than the $379 million billed. Report Number FI-2004-057 (HK Law).

The United States Attorneys from five judicial districts with major ports today announced criminal charges against Evergreen International, S.A. (Evergreen), one of many Evergreen-related companies involved in the container ship business. Under the terms of a plea agreement, Evergreen will pay $25 million, the largest-ever amount for a case involving deliberate vessel pollution, and plead guilty to felony charges brought in Los Angeles; Newark, NJ; Portland, OR; Seattle; and Charleston, SC. Evergreen pleaded guilty today to 24 felony counts and one misdemeanor - five counts from each federal district involved in the case - for concealing the deliberate, illegal discharge of waste oil and for a negligent discharge in the Columbia River.

U.S. Congressman Elijah E. Cummings (D-MD), Chairman of the Subcommittee on Coast Guard and Maritime Transportation, called on the Coast Guard to submit the designs for National Security Cutter (NSC) 3 for analysis by the Naval Surface Warfare Center (Carderock Division) and to submit the results of the analysis to Congress. In a letter to the Commandant of the Coast Guard, Admiral Thad Allen, Chairman Cummings also called on the Coast Guard to commit to having the design and construction of all future NSCs certified by an independent, third party. Chairman Cummings said, "Last week, the Committee on Transportation and Infrastructure unanimously adopted by voice vote the Integrated Deepwater Program Reform Act, H.R.

ITT Corporation, the leading manufacturer of military night vision equipment for the U.S. Armed Forces, has admitted sending classified materials overseas and will pay a $100 million penalty, Assistant Attorney General for the National Security Division Kenneth L. Wainstein and U.S. Attorney for the Western District of Virginia John L. Brownlee announced today, along with the Defense Criminal Investigative Service (DCIS) and U.S. Immigration and Customs Enforcement (ICE). The corporation will pay a total monetary penalty of $100 million, one of the largest penalties ever paid in a criminal case. ITT Corporation will also be the first major defense contractor convicted of a criminal violation of the Arms Export Control Act. According to the written plea agreement to be filed in U.S.

Representatives from Integrated Coast Guard Systems (ICGS) presented testimony on the Integrated Deepwater System program before the Senate Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard. Philip Teel, president of Northrop Grumman Ship Systems, and Dr. Leo Mackay, vice president and general manager of Lockheed Martin Coast Guard Systems, highlighted ICGS' commitment to the Coast Guard and its continued support of the service's evolving post-9/11 mission requirements. Renewal of the service contract for the Helicopter Interdiction Tactical Squadron (HITRON) based in Jacksonville, Fla., for a fifth year. These eight MH-68A helicopters are equipped with airborne use of force and have had a significant impact on illicit drug interdictions.

The Office of the Inspector General (OIG) of the Department of Homeland Security (DHS) released its evaluation of the DHS information security program. It found that progress has been made since the last evaluation, but that there is still room for improvement. Source: HK Law

The Office of the Inspector General (OIG) of the Department of Homeland Security released its report on the National Asset Database. The database was intended to identify and prioritize the nation’s critical infrastructure and key resources to allow for use of limited forces to provide protection. As of January 2006, the database contained 77,069 assets. A preliminary review reveals that many of the assets in the database are not critical to the security of the United States and that the data collection process is in need of significant modification. The report notes that even DHS questions that usefulness of the database and, for the Port Security Grant Program, utilized data from the Coast Guard, rather than the National Asset Database. Source: HK Law

During the largest terrorism drill in U.S. history last year, the FBI and U.S. Coast Guard got into a tussle off the shores of Connecticut, fighting over how each agency's tactical assault team would be involved in the boarding of a hijacked ferry, the Hartford Courant reported. The U.S. Department of Justice's Office of the Inspector General released a report on April 3 that detailed the disagreement between agencies during the massive TOPOFF exercise, much of which was run in and around New London. That portion of the report concluded, "In our judgment, unless such differences over roles and authorities are resolved, the response to a maritime incident could be confused and potentially disastrous." It was a year ago that dozens of agencies - federal…

A record low accident rate and a command-wide emphasis on safety helped the USACE earn the 1998 Chief of Staff of Army's Major Army Command (MACOM) Safety Award. USACE, one of only two commands to earn the 1998 award, has earned it three of the past four years. The award recognizes the continued improvement of the USACE safety record in FY 98. In FY 98, there were no accidental federal employee fatalities during normal duty hours, and only 470 lost-time injuries and illnesses, compared to one fatality and 527 lost-time claims in FY 97. The USACE rate for lost time accidents is 42 percent lower than the Army average. USACE also showed improvement in contractor safety. There were two contractor fatalities and 217 contractor injuries, compared to eight fatalities and 227 injuries in FY 97.