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Greek companies fined US$1.5 million in Seattle for dumping oily water
TWO companies owned by Greek shipping magnate Evangelos Angelakos have been ordered by a Seattle court to pay US$1.5 million after a jury found that a bulkers dumped oil-polluted water into the sea, then repeatedly lied and falsified records to evade US Coast Guard inspectors.
US District Court Judge John Coughenour said he was troubled by the actions of Gallia Graeca and Angelakos, and wanted to send a message "that will resonate with other parties in this industry and cause them to pause when they think about creating a corporate culture that encourages deception," reported The Associated Press.
The 74,133-dwt bulker Gallia Graeca, arrived in Seattle from China in October 2015 to pick up a US$20 million shipment of soybeans. When USCG petty officer Daniel Hamilton came aboard to conduct a general inspection, he noticed that several things seemed off. Valves were misaligned, oil appeared where it shouldn't have, and the oil-water separator did not appear to have been maintained.
Prosecutors discovered that 5,000 gallons of oil-fouled bilge water had been dumped at sea, but the inspectors had been shown an official log book that indicated no such discharges. Furthermore, when the engineers demonstrated the operation of the oil-water separator for the US Coast Guard, they did so in a manner designed to trick the inspectors into believing it was working.
In recommending a fine of $100,000, company lawyer George Chalos said the misconduct was committed by rogue employees and that management had nothing to gain by falsifying records.
But prosecutors sought a $3 million fine, saying the company executives had been in touch with the vessel's engineers about how they should present the log book to the Coast Guard.
In June, the jury convicted the companies, along with the vessel's chief and second engineers, of charges related to pollution, falsification of records and fraud. The engineers each received 10 days in jail.
The judge ordered the companies to direct $200,000 of the penalty to the National Parks Foundation and the National Fish and Wildlife Foundation; and put them on probation for five years.
US District Court Judge John Coughenour said he was troubled by the actions of Gallia Graeca and Angelakos, and wanted to send a message "that will resonate with other parties in this industry and cause them to pause when they think about creating a corporate culture that encourages deception," reported The Associated Press.
The 74,133-dwt bulker Gallia Graeca, arrived in Seattle from China in October 2015 to pick up a US$20 million shipment of soybeans. When USCG petty officer Daniel Hamilton came aboard to conduct a general inspection, he noticed that several things seemed off. Valves were misaligned, oil appeared where it shouldn't have, and the oil-water separator did not appear to have been maintained.
Prosecutors discovered that 5,000 gallons of oil-fouled bilge water had been dumped at sea, but the inspectors had been shown an official log book that indicated no such discharges. Furthermore, when the engineers demonstrated the operation of the oil-water separator for the US Coast Guard, they did so in a manner designed to trick the inspectors into believing it was working.
In recommending a fine of $100,000, company lawyer George Chalos said the misconduct was committed by rogue employees and that management had nothing to gain by falsifying records.
But prosecutors sought a $3 million fine, saying the company executives had been in touch with the vessel's engineers about how they should present the log book to the Coast Guard.
In June, the jury convicted the companies, along with the vessel's chief and second engineers, of charges related to pollution, falsification of records and fraud. The engineers each received 10 days in jail.
The judge ordered the companies to direct $200,000 of the penalty to the National Parks Foundation and the National Fish and Wildlife Foundation; and put them on probation for five years.
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