Stamford Ship Manager Pleads Guilty To Dumping Oily Waste Into U.S. Waters: DOJ

STAMFORD, CT — Stamford-based Eagle Ship Management LLC (ESM) pleaded guilty this week to dumping oily waste in United States waters, according to an announcement from the U.S. Department of Justice.

The ship manager pleaded guilty to violating the Act to Prevent Pollution from Ships (APPS) by deliberately polluting the waters off the coast of New Orleans from the M/V Gannet Bulker, a foreign-flagged bulk carrier, USDOJ said.

If approved by the court, USDOJ said the company would pay a criminal fine of $1,750,000 and serve a four-year term of probation that includes external audits by an independent technical expert.

"The Department of Justice vigorously prosecutes violations of the laws that protect U.S. ports and waters," said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD), in a prepared statement.

"The criminal conduct involved here was serious, including intentional pollution and a deliberate coverup," he added.

The U.S. Coast Guard launched an investigation after a crew member sent a message via social media on March 14, 2021, indicating that the engine room had flooded and that the resulting oil-contaminated bilge waste had been deliberately pumped overboard at night, USDOJ said.

Flooded bilges can pose a serious threat to the safety of the ship and crew, including creating a risk of electrocution, loss of power, and inability to steer, USDOJ noted.

At the time, the Gannet Bulker was at an anchorage near the Southwest Passage of the Port of New Orleans, near the mouth of the Mississippi River.

The intentional overboard oily discharge into U.S. waters involved approximately 10,303 gallons, or 39 cubic meters, and was done without the use of required pollution prevention equipment or required record keeping, USDOJ said, citing court records.

In pleading guilty, the USDOJ said ESM and its crew admitted to engaging "in a variety of obstructive acts to conceal the internal flooding that was caused by a botched repair."

"The obstructive acts included retaliation against the whistleblower whose identity was known. Senior ship officers and crew also lied to the Coast Guard and destroyed evidence including a printout from the engine control room computer that contained key information," USDOJ said. "Additionally, senior ship officers created false and backdated personnel evaluations intended to discredit the whistleblower."

The chief engineer of the Gannet Bulker was prosecuted in a separate case and sentenced in 2022 to just over a year in prison for his role in the incident, USDOJ said.

Michael M. Simpson, the acting U.S. attorney for the Eastern District of Louisiana, noted the DOJ's announcement "sends a clear message intended to deter deliberate pollution."

Damon J. Youmans, special agent in charge of the Coast Guard Investigative Service’s Gulf Field Office, said in a prepared statement the U.S. Coast Guard and its investigative services "remain steadfast in our commitment to enforcing maritime environmental laws to protect U.S. waters and ensure compliance with international regulations."

"We will continue to hold accountable those who violate these laws and endanger our marine environment," he said.

Sentencing has been scheduled for Oct. 16.