Portland, OR – A decade-long investigation into the illegal dumping of contaminated wheat and diesel fuel into the South China Sea culminated in the sentencing of multiple individuals, including Captain George K. McKay, in 2005. The case, originating from a routine US Coast Guard inspection of the Steam Ship Juneau upon its arrival in Portland, Oregon, revealed a deliberate effort to conceal environmental damage and skirt international maritime regulations.
The investigation traced the incident back to 1998, when the SS Juneau departed the U.S. carrying approximately 113,000 metric tons of wheat destined for Bangladesh as part of a U.S. Aid program. During the voyage, a leak of 150-200 barrels of diesel fuel contaminated a significant portion of the wheat cargo. The Bangladeshi government rejected the tainted shipment, instructing the Juneau to remain anchored until proper disposal arrangements were made. However, the vessel’s owners, Sabine Transportation Company, chose a different path.
Instead of adhering to environmental protocols, Sabine Transportation, under the direction of owner Rick Stickle and Vice President Michael Reeve, directed the ship, now under the command of Captain McKay, to Singapore. There, the company contracted a crew of 15 Bulgarian nationals to remove the contaminated wheat. The directive wasn’t for proper disposal; it was for clandestine dumping. During the first week of the voyage from Singapore in early 1999, the Bulgarian crew illegally discharged approximately 450 metric tons (992,080 pounds) of the oil-laden wheat directly into the South China Sea.
The scheme began to unravel when a crew member aboard the SS Juneau alerted the USCG upon arrival in Portland on March 5, 1999. A subsequent investigation led to indictments in February 2004. Multiple individuals involved in the cover-up eventually pleaded guilty to various charges. Reeve, Krider, and Hitchens all admitted to wrongdoing, receiving sentences ranging from probation and community service to substantial fines. McKay himself pleaded guilty to violating the MARPOL protocol.
Penalties and Legal Violations
The defendants were charged with violating several key statutes: 18 U.S.C. 371 (Conspiracy), 18 U.S.C. 1025 (Making False Statements), and 33 U.S.C. 1908(a), a violation of the MARPOL Protocol – specifically, the Prevention of Pollution from Ships. Penalties varied widely. Stickle received the harshest sentence: 33 months incarceration, 24 months probation, a $200 special assessment, and a $60,000 federal fine. McKay received a comparatively light sentence of a $100 special assessment and a $500 federal fine. Reeve was sentenced to 18 months probation and $2,250 in fines and community service. Krider and Hitchens received probation and community service with smaller fines.
Key Facts
- Defendant: George K. McKay, along with Rick Stickle, Michael Reeve, and others.
- Crime: Illegal dumping of approximately 450 metric tons of diesel fuel contaminated wheat into the South China Sea.
- Vessel: Steam Ship Juneau.
- Location of Dumping: South China Sea.
- Origin of Contamination: Diesel fuel leak during voyage to Bangladesh.
- Statutes Violated: MARPOL Protocol, Title 18 U.S. Criminal Code (Conspiracy, False Statements).
- Fugitive: John Karayannides remains at large, listed on the EPA Fugitive list and INTERPOL Red Notice.
Despite the convictions, one individual, John Karayannides, remains a fugitive. He fled the United States in December 2008 and is currently listed on both the EPA’s Fugitive list and the INTERPOL Red Notice, highlighting the ongoing pursuit of justice in this case of blatant maritime pollution and corporate malfeasance. The case serves as a stark reminder of the environmental consequences of prioritizing profit over responsible shipping practices.
Source: EPA ECHO Enforcement Case Database
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