Greek shipping firms ANGELAKOS (HELLAS) S.A. and GALLIA GRAECA SHIPPING LTD were sentenced to pay a $1.3 million criminal fine and an additional $200,000 in community service payments for orchestrating a scheme to dump 5,000 gallons of oily bilge water into the Pacific Ocean. The companies, found guilty in June 2016, admitted to violating the Act to Prevent Pollution from Ships, falsifying records during a federal investigation, and engaging in a Scheme to Defraud the United States. The sentencing took place in U.S. District Court in Seattle before Judge John C. Coughenour.
The M/V Gallia Graeca, en route from China to Seattle in October 2015, discharged oily waste on three separate dates—October 16, 26, and 27—while its oil water separator remained inoperable. Instead of repairing the pollution-control device, the crew opted to conceal the illegal discharges. The ship’s oil record book falsely claimed no discharges occurred, despite overwhelming evidence to the contrary uncovered by the U.S. Coast Guard.
Coast Guard inspectors discovered clogged filters saturated with oil and residue in the overboard discharge piping during a routine inspection in Seattle. When engineers were asked to demonstrate the oil water separator, they manipulated the system to simulate proper function—despite records showing it hadn’t been serviced in months. Prosecutors labeled the voyage a “voyage of deception and pollution,” citing direct communications between corporate executives and engineers on how to falsify logs ahead of the inspection.
“These companies promoted a culture of lies and lawlessness that left a trail of pollution in the Pacific Ocean,” said U.S. Attorney Annette L. Hayes. “Corporate managers allowed the Chief Engineer to present falsified documents knowing a Coast Guard inspection was imminent. The message is clear: profit will not come before our laws.”
Judge Coughenour emphasized the symbolic weight of the penalty, stating the sanctions should “resonate and cause other companies to pause when they think about creating a corporate culture that encourages deception.” In addition to the $1.3 million fine and $200,000 community service payment, the companies were placed on five years of probation and must implement comprehensive environmental compliance plans.
“Through strong partnerships with the Department of Justice, the U.S. Attorney’s Office and our Coast Guard Investigative Service, this case demonstrates our commitment to hold accountable shipping companies engaged in illegal activities,” said Captain Joe Raymond, Coast Guard Captain of the Port Puget Sound. “The Coast Guard will protect our marine environment by enforcing pollution prevention laws and maintaining a robust vessel inspection program.”
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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