OAKLAND, CA – Transmar Shipping Company S.A., operator of the bulk cargo vessel M/V New Fortune, and two of its engineers have been penalized for a deliberate scheme to illegally discharge oil-contaminated waste into the ocean and then cover up the violations through falsified records. The case, investigated by the U.S. Coast Guard and the Environmental Protection Agency, highlights a continued effort to combat marine pollution and hold companies accountable for environmental crimes.
The investigation began on February 6, 2010, during a routine U.S. Coast Guard inspection of the M/V New Fortune while docked in the Port of Oakland. A crew member alerted inspectors to the existence of a “magic pipe” – a bypass hose used to circumvent the vessel’s oil water separator (OWS) and discharge oily wastewater directly overboard. Inspectors discovered evidence suggesting the pipe had been thrown overboard prior to entering port, an attempt to conceal the illegal activity. Further examination revealed the ship’s OWS and incinerator were non-functional, despite entries to the contrary in the vessel’s Oil Record Book.
Evidence collected during the inspection, including oil samples from the bypass valve and observations of rust within the OWS, confirmed the allegations. The M/V New Fortune, a 612.9-foot vessel registered in the Marshall Islands, was subsequently detained. Eleven crew members were held for 150 days under a surety agreement while the investigation unfolded. The case underscores the importance of vigilant inspections and the willingness of crew members to report illegal practices.
Indictments and Guilty Pleas
On July 16, 2010, Transmar Shipping Company, Chief Engineer Dimitrios Dimitrakis, and Second Engineer Volodymyr Dombrovskyy were indicted on eight counts, including conspiracy (18 U.S.C. 371), making false statements (18 U.S.C. 1001), obstruction of justice (18 U.S.C. 1503), and violating the Act to Prevent Pollution from Ships (33 U.S.C. § 1908(a)). All three parties eventually entered guilty pleas. Transmar admitted to knowingly allowing the illegal discharges and falsifying records to conceal them.
Penalties and Compliance Plan
U.S. District Judge D. Lowell Jensen sentenced Transmar to a $750,000 fine and an additional $100,000 in community service. Critically, the court also mandated the development and implementation of a comprehensive, fleet-wide environmental compliance plan. This plan requires Transmar to designate a corporate compliance manager, create an environmental manual for all ships, provide thorough employee training, and undergo regular compliance audits. Dombrovskyy received two years of probation, a $500 fine, and a $100 special assessment. Dimitrakis was sentenced to three years of probation, a $100 special assessment, and a $5,000 fine.
Key Facts
- Defendant: Transmar Shipping Company S.A., Dimitrios Dimitrakis, Volodymyr Dombrovskyy
- Crime: Illegal discharge of oil-contaminated waste and falsification of records
- Location: Oakland, California
- Year: 2010
- Laws Violated: 18 U.S.C. 371 (Conspiracy), 18 U.S.C. 1001 (False Statements), 18 U.S.C. 1503 (Obstruction of Justice), 33 U.S.C. § 1908(a) (Act to Prevent Pollution from Ships)
- Penalties: Transmar – $850,000 in fines and a comprehensive compliance plan. Dombrovskyy – 2 years probation, $500 fine. Dimitrakis – 3 years probation, $5,000 fine.
- Evidence: “Magic pipe” bypass hose, oil samples, falsified Oil Record Book entries, crew member testimony
The prosecution, handled by the U.S. Attorney’s Office for the Northern District of California and the Department of Justice’s Environment and Natural Resources Division, sends a clear message that environmental crimes will be vigorously investigated and prosecuted. The case serves as a reminder of the devastating impact of marine pollution and the importance of responsible shipping practices.
Source: EPA ECHO Enforcement Case Database
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