DST Shipping, Oil Pollution, California 2005

Los Angeles, CA – DST Shipping, a maritime transport company, was sentenced to probation and a hefty fine after admitting to intentionally polluting the ocean and obstructing a federal investigation, according to court documents unsealed this week. The case, originating from a 2004 Coast Guard inspection, revealed a deliberate scheme to bypass environmental regulations and cover up illegal discharges of oil waste.

The investigation began when Coast Guard personnel discovered a “pirate pipe” – a deliberately installed bypass system – aboard one of DST Shipping’s vessels. This illegal modification allowed the crew to discharge oil directly overboard, circumventing standard waste management procedures and violating the International Convention for the Prevention of Pollution from Ships (MARPOL). Crucially, the company didn’t just allow the illegal dumping; they actively directed their crew to falsify official records to conceal the environmental crime.

According to the Environmental Protection Agency (EPA), officers aboard the vessel maintained falsified Oil Record Books, essential documents used to track the handling of waste oil. These records were intentionally altered to misrepresent the proper disposal of oily waste, creating a false impression of compliance with both U.S. and international maritime law. The EPA’s criminal enforcement division determined that DST Shipping not only knew about the illegal discharges but actively ordered the crew to lie to investigators when questioned about the discrepancies.

The fallout from the investigation saw several individuals connected to the vessel facing criminal charges. In September 2004, three officers – Guinto, Kallikis, and Sullesta – were charged with making false statements (18 U.S.C. 1001), obstructing proceedings (18 U.S.C. 1519), and witness tampering (18 U.S.C. 1512(c)(2)). DST Shipping itself was subsequently charged in December 2004 with two counts of witness tampering and two counts of violating MARPOL (33 U.S.C. 1908). The company pleaded guilty in February 2005 to two counts, receiving 48 months of probation and a $1 million federal fine.

Individual sentencing varied. Guinto received two months of incarceration, six months of home detention, and 36 months of probation, with fines waived due to financial hardship. Kallikis was sentenced to 13 months of home detention and 36 months probation, while Sullesta received 14 months of home detention and 12 months probation. Each individual was also ordered to pay a $100 special assessment. The case underscores the EPA’s commitment to aggressively prosecuting companies and individuals who prioritize profit over environmental protection and attempt to obstruct justice.

Key Facts

Defendant: DST Shipping
Crime: Oil Pollution, Obstruction of Justice, Witness Tampering
Location: California
Year: 2005
Statutes Violated: MARPOL Protocol (33 U.S.C. 1908(a)), 42 U.S.C. 7413(c)(4), 18 U.S.C. 1512(c)(2), 18 U.S.C. 1001, 18 U.S.C. 1519
Penalties: DST Shipping – 48 months probation, $1 million fine. Individual sentences ranged from home detention to brief incarceration and probation.
Method: Use of a “pirate pipe” to illegally discharge oil overboard and falsification of Oil Record Books.

GrimyTimes will continue to follow this case and report on any further developments.

Source: EPA ECHO Enforcement Case Database

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