ST. CROIX, U.S.V.I. – Stamatios Alekidis, along with several affiliated companies and crewmembers, has been sentenced for intentionally polluting U.S. waters and obstructing a federal investigation, according to court documents unsealed this week. The case, stemming from the operation of the Motor Tanker (M/T) Ocean Princess, reveals a systematic effort to skirt environmental regulations and deceive U.S. Coast Guard inspectors.
The Ocean Princess, owned by LILY SHIPPING LTD. and operated by IONIAN SHIPPING & TRADING CORP., both based in Greece, was found to have repeatedly violated the U.S. Caribbean Emission Control Area (U.S. Caribbean ECA) standards. Between January 2017 and July 2018, the vessel allegedly used fuel containing excessive sulfur levels – exceeding the legal limit of 0.10% by weight – on 26 separate occasions while operating within the U.S. Caribbean ECA. This illegal practice is a direct violation of regulations designed to protect air quality and public health.
Investigators discovered the pollution wasn’t accidental. Commercial managers authorized the transfer of petroleum cargo directly into the vessel’s fuel tanks—a practice explicitly prohibited under environmental laws. Master of the vessel, Stamatios Alekidis, oversaw these transfers. Chief Officer Rey Espulgar and Chief Engineer Athanasios Pittas then allegedly conspired to cover up the illegal activity by falsifying official ship logs. Espulgar manipulated the Oil Record Book, Part II, omitting records of the cargo transfers. Pittas went further, creating entirely fabricated Bunker Delivery Notes claiming the high-sulfur fuel originated from a supplier in St. Martin, F.W.I. – a deliberate attempt to mislead authorities.
The scheme unraveled during a U.S. Coast Guard inspection on July 10, 2018. Inspectors detected the excessive sulfur content in the fuel being used by the Ocean Princess. Adding to the severity of the crimes, Espulgar allegedly instructed lower-ranking crew members to lie to inspectors, falsely claiming the fuel was sourced from St. Martin. This obstruction of justice constituted a significant escalation of the illegal activity.
Penalties and Legal Ramifications
On August 26, 2019, IONIAN SHIPPING & TRADING CORP. and LILY SHIPPING LTD. were each fined $1,500,000 and placed on four years of probation, requiring them to implement a comprehensive Environmental Compliance Plan. Stamatios Alekidis, Athanasios Pittas, and Rey Espulgar each received three years of probation and were barred from returning to the United States on a ship during that period. Espulgar was additionally fined $3,000. The defendants violated several federal statutes, including Title 18 U.S. Criminal Code, MARPOL Protocol – Prevention of Pollution from Ships, 33 U.S.C. 1908(a), 33 U.S.C. 1908, and 18 U.S.C. 1505. These laws prohibit the discharge of pollutants into U.S. waters and criminalize the falsification of records and obstruction of official investigations.
Key Facts
- Defendant: Stamatios Alekidis, IONIAN SHIPPING & TRADING CORP., LILY SHIPPING LTD., Athanasios Pittas, Rey Espulgar
- Vessel: M/T Ocean Princess
- Location: U.S. Caribbean Emission Control Area (U.S. Caribbean ECA), St. Croix, U.S.V.I.
- Dates of Violation: January 3, 2017 – July 10, 2018
- Violation: Illegal use of high-sulfur fuel, falsification of ship logs, obstruction of a U.S. Coast Guard inspection
- Penalties: $1.5 million fines for companies, probation for individuals, ban from U.S. waters for individuals, and additional fines.
This case underscores the EPA’s commitment to vigorously prosecuting maritime pollution crimes and holding companies and individuals accountable for endangering the environment and attempting to evade the law. The investigation highlights the importance of accurate recordkeeping and the need for transparency in the shipping industry.
Source: EPA ECHO Enforcement Case Database
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