U.S. Court Orders Two Greek Shipping Companies to Pay $2.7 Million for Oily Waste Dumping

Two Greek shipping companies have been sentenced to pay $2.7 million in U.S. corporate penalties.

The U.S. Department of Justice Thursday announced that two Greek shipping companies have been sentenced to pay $2.7 million in corporate penalties in connection to illegal discharges of oily waste into the marine environment from one of their vessels.

As Ship & Bunker reported in September, a federal jury in Greenville, North Carolina convicted Oceanic Illsabe Limited (Oceanic Illsabe), Oceanfleet Shipping Limited (Oceanfleet Shipping), and two of their employees with violating the Act to Prevent Pollution from Ships (APPS), obstruction of justice, false statements, witness tampering, and conspiracy in relation oily waste dumping from M/V Ocean Hope into the Pacific Ocean last year.

Vessel owner Oceanic Illsabe and vessel operator Oceanfleet Shipping, both of which are based out of Greece, were found to have been aware that the vessel rarely used its oil-water separator and had not offloaded oil sludge since September 2014.

Specifically, Oceanfleet Shipping has been sentenced to pay a $1,350,000 fine, as well as a $450,000 community service payment to Gray's Reef, while Oceanic Illsabe has been sentenced to pay a $675,000 fine, as well as a $225,000 community service payment to the reef. 

Further, both companies have been placed on probation for five-year term and can no longer send ships to U.S. ports until financial penalties have been satisfied.

"We are pleased with the substantial penalties imposed by the court, which reinforces that pollution doesn't pay," said Assistant Attorney General John C. Cruden for the Justice Department's Environment and Natural Resources Division.

"We will continue to protect United States ports and waters, and uphold our treaty obligations, by vigorously prosecuting companies that dump oil at sea and then try to mislead U.S. Coast Guard inspectors with false statements and documents."

Last month, the vessel's engineers, Rustico Ignacio and Cassius Samson were sentenced to a term of nine months followed by a year of supervised release, and a term of 12 months in prison followed by a year of supervised release, respectively.