ANCHORAGE, Alaska – In a shocking revelation, Furie Operating Alaska LLC (Furie) has agreed to pay $10 million to satisfy a civil penalty for violating the Jones Act, a federal law that prohibits foreign vessels from transporting merchandise between points in the United States.
The penalty, assessed by U.S. Customs and Border Protection (CBP), was originally assessed against Furie for transporting the Spartan 151 jack-up drill rig from the Gulf of Mexico to Alaska in 2011 using a foreign flagged vessel without acquiring a waiver of the Jones Act from the Secretary of Homeland Security.
Furie was penalized for intentionally violating the Jones Act, a law that has been in place since 1920. The Jones Act prohibits a foreign vessel from transporting merchandise between points in the United States, and a waiver may be obtained in limited circumstances when it is in the interest of national defense.
The settlement in this case is the largest Jones Act penalty in the history of the Act, with Furie agreeing to pay $10 million to resolve the civil lawsuit filed by Furie in 2012 challenging the assessment of the civil penalty.
The resolution of this case demonstrates that the Jones Act will be actively enforced, and an intentional violation will not be rewarded. The settlement also provides closure to Furie and is designed not to undermine its ability to bring natural gas to market in Southcentral Alaska.
Acting U.S. Attorney Bryan Schroder commends U.S. Customs and Border Protection, Office of General Counsel, for their active support and assistance leading to the settlement in this case.
Defendant: Furie Operating Alaska LLC
Criminal Charges: Violating the Jones Act
City and State: Anchorage, Alaska
Date: 2011
Sentence/Outcome: Paid $10 million in civil penalty
Dollar Amount: $10 million
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Key Facts
- State: Alaska
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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