Portland, OR – Two international shipping companies, A.E. Nomikos Shipping Investments, LTD. and Lounia Shipping Co. Ltd., have been sentenced following a guilty plea to felony charges of oil pollution and falsifying records, stemming from events aboard the bulk carrier Arion SB in 2011. The case, investigated by the U.S. Coast Guard and prosecuted by the U.S. Attorney’s Office for the District of Oregon, reveals a deliberate effort to circumvent maritime environmental regulations and deceive authorities.
According to court documents, between June and October 2011, the companies, headquartered in Greece and Cyprus respectively, directed crew members aboard the Arion SB to intentionally bypass the ship’s oil water separator. The Chief Engineer allegedly instructed the Second Engineer to pump fresh water directly into the Oil Content Meter, effectively “blinding” the device and allowing the discharge of oil-contaminated waste overboard without proper filtration. This practice violated the International Convention for the Prevention of Pollution from Ships (MARPOL), a crucial international treaty designed to minimize pollution from vessels.
Further compounding the offense, the Chief Engineer deliberately omitted any mention of this manipulation from the ship’s Oil Record Book, the official log required to document all oil handling operations. Inaccurate entries were also made regarding the use of the vessel’s Waste Oil Incinerator, further obscuring the true extent of the illegal discharges. The scheme was uncovered during a routine Port State Control Safety Exam conducted by the U.S. Coast Guard on October 16, 2011.
Legal Ramifications and Penalties
The companies pled guilty to one count of violating MARPOL (33 U.S.C. 1908(a)) and one count of making false statements (18 U.S.C. 1001). U.S. District Judge Michael H. Simon sentenced both A.E. Nomikos and Lounia to three years of probation. In addition to probation, the companies were ordered to pay a combined fine and restitution totaling $750,000. A significant portion—$375,000—will be directed to the Oregon Governor’s Fund for the Environment, earmarked for local environmental cleanup and restoration projects focused on preserving the state’s rivers, watersheds, and wildlife.
U.S. Attorney S. Amanda Marshall emphasized the seriousness of the offense, stating that the sentence “should send a clear message that the United States will hold vessels responsible for dumping oil in our oceans and for lying to the United States Coast Guard.” Oregon Attorney General John Kroger echoed this sentiment, reaffirming his office’s commitment to holding polluters accountable. The case highlights the ongoing efforts of federal and state authorities to enforce maritime environmental laws and protect vulnerable ecosystems.
Key Facts
- Defendant: A.E. Nomikos Shipping Investments, LTD. and Lounia Shipping Co. Ltd.
- Crime: Oil Pollution and Falsifying Records
- Location: At sea, impacting Oregon waters
- Year: 2012 (charges filed in 2011)
- Statutes Violated: 33 U.S.C. 1908(a) (MARPOL), 18 U.S.C. 1001 (False Statements)
- Penalty: $750,000 fine (including $375,000 to Oregon Governor’s Fund for the Environment), 3 years probation, and implementation of an Environmental Compliance Plan.
- Method of Pollution: Bypassing oil water separator by manipulating Oil Content Meter with fresh water.
The incident serves as a stark reminder of the environmental risks associated with maritime shipping and the importance of rigorous oversight and enforcement to ensure compliance with international and domestic regulations. The allocation of funds to Oregon’s environmental fund demonstrates a commitment to mitigating the damage caused by such violations and restoring affected ecosystems.
Source: EPA ECHO Enforcement Case Database
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