Baltimore, MD – Pacific-Gulf Marine, Inc. (PGM) found itself back in federal court in 2010, extending a saga of environmental violations and deception that began four years prior. The marine services company, already on probation for previous offenses, admitted to falsifying records related to its oil water separator (OWS) systems – devices designed to prevent pollutants from being discharged into waterways. The latest guilty plea underscores a pattern of disregard for environmental regulations and a willingness to actively conceal wrongdoing.
The initial trouble for PGM began in June 2006, when the company pleaded guilty to violating the Act to Prevent Pollution from Ships. This resulted in a $1 million fine and a three-year term of federal probation. A critical component of that probation was the requirement to employ an independent environmental auditor to oversee the proper functioning and reporting of its OWS systems. These systems are vital for keeping oil and other harmful substances out of the marine environment.
However, the intended oversight mechanism ironically led to the latest charges. The very auditor PGM hired discovered evidence of systematic falsification of OWS test results. Instead of self-reporting, the auditor brought the findings directly to the Department of Justice (DOJ). Investigators determined that PGM personnel were deliberately manipulating data to create the *appearance* of compliance with Clean Water Act regulations, while in reality, likely discharging untreated oily waste into Maryland’s waterways.
On July 20, 2010, PGM was formally charged with one count of violating 18 U.S.C. 3564(d), a statute relating to probation violations. The company swiftly entered a guilty plea and was sentenced to an additional 24 months of federal probation, tacked onto its existing sentence. This extension highlights the severity with which the courts view repeated offenses, particularly those involving deliberate attempts to circumvent environmental safeguards.
The case raises questions about the efficacy of relying solely on company-funded environmental audits, and whether more stringent, independent verification is needed. While the auditor ultimately did the right thing by reporting the violations, the fact that falsification occurred *despite* the audit suggests a deep-seated culture of non-compliance within PGM. Sources close to the investigation suggest the falsified records extended over a significant period, potentially impacting the health of the Chesapeake Bay and surrounding ecosystems.
The DOJ’s continued pursuit of environmental crimes, even against companies already under scrutiny, sends a clear message: deliberate pollution and obstruction of justice will not be tolerated. The Clean Water Act is a cornerstone of environmental protection, and those who flout its provisions will face serious consequences. The extended probation serves as a further deterrent, requiring ongoing monitoring and accountability from PGM.
Key Facts
- Defendant: Pacific-Gulf Marine, Inc.
- Crime: Falsifying Oil Water Separator (OWS) test results, violating terms of federal probation.
- Location: Maryland
- Year: 2010
- Statutes Violated: 18 U.S.C. 3564(d) – Probation Violation, and previously violated the Act to Prevent Pollution from Ships (related to the Clean Water Act).
- Penalty: 24 months additional federal probation, following a previous $1 million fine and 3 years of probation.
- Discovery: Environmental auditor hired by PGM uncovered the falsified records and reported them to the DOJ.
Source: EPA ECHO Enforcement Case Database
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