New Orleans, LA – Greek shipping company Ilios Shipping Co., S.A. has been penalized for a years-long scheme to illegally discharge oil waste into the ocean and then cover up the pollution, according to court documents unsealed this week. The case, investigated by the U.S. Coast Guard and the Environmental Protection Agency’s Criminal Investigation Division, reveals a deliberate effort to bypass environmental regulations and prioritize profit over responsible maritime practices.
From April 2009 to April 2011, the M/V Agios Emilianos, a 738-foot bulk carrier operated by Ilios, routinely dumped oily bilge waste and sludge directly into the sea without utilizing required pollution prevention equipment. This practice violates both U.S. and international maritime law, designed to protect vulnerable marine ecosystems. Rather than properly disposing of the waste at port facilities, the crew falsified the vessel’s oil record book to conceal the illegal discharges, creating a false impression of environmental compliance.
The deception extended beyond simple record-keeping. Valentino Mislang, the master of the Agios Emilianos, admitted to destroying evidence and instructing crew members to lie to the Coast Guard during a vessel inspection in April 2011. Romulo Esperas, the chief engineer, corroborated Mislang’s account, stating that a senior manager at Ilios directed the discharges and blocked funding for proper waste disposal. Furthermore, court records reveal a separate, parallel scheme where the company manipulated fuel consumption reports to overcharge charterers, creating a fraudulent system of billing.
Federal prosecutors detailed how Ilios used a dual reporting system – one accurate report for internal use and a deliberately inflated report for charterers – to pocket the difference in fuel costs. Engineers were allegedly instructed to install false measuring devices in fuel tanks to support the inflated claims. This financial manipulation, coupled with the environmental crimes, painted a picture of a company willing to cut corners at any cost.
Penalties and Compliance
Ilios Shipping Co., S.A. pleaded guilty to charges of obstruction of justice and violating the Act to Prevent Pollution from Ships (APPS). The company was sentenced on March 27, 2012, to 36 months of probation and ordered to pay a total of $2 million in fines and community service. $250,000 of this sum will be directed to the National Fish and Wildlife Foundation for marine and aquatic resource restoration projects in the Eastern District of Louisiana. Mislang and Esperas each received 36 months of probation and are barred from re-entering the United States during that period.
As part of the sentencing, Ilios is required to implement a comprehensive environmental compliance plan, ensuring all vessels under its operation adhere to international, flag state, and port state maritime environmental regulations. An independent monitor will oversee Ilios’s compliance during the probationary period.
Key Facts
- Defendant: Ilios Shipping Co., S.A.
- Crime: Illegal discharge of oil waste, obstruction of justice, and fraud.
- Location: Violations occurred at sea, with the vessel operating from New Orleans, Louisiana.
- Years of Operation: Illegal discharges took place from April 2009 to April 2011.
- Statutes Violated: Title 18 U.S. Criminal Code, MARPOL Protocol; 33 U.S.C. 1908(a); 42 U.S.C. 7413(c)(4); 18 U.S.C. 371, 1505, 1519
- Penalties: $2 million in fines and community service, 36 months probation for the company, and 36 months probation for master Valentino Mislang and chief engineer Romulo Esperas.
- Vessel: M/V Agios Emilianos, a 738-foot bulk carrier.
This case underscores the ongoing efforts of federal agencies to combat maritime pollution and hold companies accountable for environmental crimes. The Department of Justice and the EPA continue to prioritize investigations into illegal discharges and fraudulent practices within the shipping industry.
Source: EPA ECHO Enforcement Case Database
Related Federal Cases
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime