Oil Record Book Violations News

Many in the maritime industry are beginning to view the oil record book as a signed confession. The number of prosecutions in the United States for fraudulent entries in oil record books is rising exponentially and fines have recently skyrocketed. In the years 1998 through 2001, research has revealed one prosecution in each year for oil record book violations. In 2002, there were seven prosecutions - and four of those were against individual chief engineers. In 2003, nine prosecutions, four of which were again against individual chief engineers. Through the middle of August 2004, there have been seven prosecutions, and only two were directed at individual chief engineers. Criminal fines to date have totaled $52,285,000.

The U.S. Attorney for the Southern District of New York said that the owner and the operator of the M/T FAIR VOYAGER were convicted, following their guilty pleas, of six criminal counts. The defendants pleaded guilty to one count of conspiracy, one count of violating the Act to Prevent Pollution from Ships, two counts of making false statements to federal authorities, and one count of obstruction of justice – all related to dumping of waste oil and sludge on the high seas and making fraudulent entries in the ship’s oil record book. The defendants also pleaded guilty to one count of falsely reporting to the Coast Guard that the ship had been tested for the presence of explosive gasoline vapors prior to the ship’s entry into port.

The U.S. Department of Justice said that a U.S. shipping company agreed to plead guilty to deliberate oil pollution and presenting fraudulent oil record books to the U.S. Coast Guard. The company agreed to pay a $37m penalty, consisting of a $27.8m criminal fine and a $9.2 million community service payment. Additionally, the company will be on probation for three years, during which time it will comply with a court-imposed environmental compliance program. Source: HK Law