Ship Manager Pleads Guilty to Dumping Oily Waste into U.S. Waters Off Coast of New Orleans

Note: View factual basis here.

Eagle Ship Management LLC (ESM), based in Stamford, Connecticut, pleaded guilty yesterday to violating the Act to Prevent Pollution from Ships (APPS) by deliberately polluting U.S. waters off the coast of New Orleans from the M/V Gannet Bulker, a foreign-flagged bulk carrier. If approved by the court, ESM would pay a criminal fine of $1,750,000 and serve a four-year term of probation that includes external audits by an independent technical expert.

The chief engineer of the Gannet Bulker was prosecuted in a separate case and sentenced to serve a year and a day in prison for his role in the discharge of oil and obstructing justice.

The Coast Guard launched its investigation after a crew member sent a message via social media on March 14, 2021, indicating that the engine room had flooded and that the resulting oil-contaminated bilge waste had been deliberately pumped overboard at night. Flooded bilges can pose a serious threat to the safety of the ship and crew, including creating a risk of electrocution, loss of power, and inability to steer.

At the time, the Gannet Bulker was at an anchorage near the Southwest Passage of the Port of New Orleans, near the mouth of the Mississippi River. According to court records, the intentional overboard oily discharge into U.S. waters involved approximately 39 cubic meters (approximately 10,303 gallons), and was done without the use of required pollution prevention equipment or required recordkeeping

“The Department of Justice vigorously prosecutes violations of the laws that protect U.S. ports and waters,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “The criminal conduct involved here was serious, including intentional pollution and a deliberate coverup.”

“Today’s announcement sends a clear message intended to deter deliberate pollution,” said Acting U.S. Attorney Michael M. Simpson for the Eastern District of Louisiana. “This office will continue to work with our agency partners to enforce the laws that were designed to protect U.S. ports and waters.”

“The United States Coast Guard and the Coast Guard Investigative Service remain steadfast in our commitment to enforcing maritime environmental laws to protect U.S. waters and ensure compliance with international regulations,” said Special Agent in Charge Damon J. Youmans of the Coast Guard Investigative Service’s Gulf Field Office. “We will continue to hold accountable those who violate these laws and endanger our marine environment.”

In pleading guilty, ESM admitted that its crew engaged in a variety of obstructive acts to conceal the internal flooding that was caused by a botched repair. The obstructive acts included retaliation against the whistleblower whose identity was known. Senior ship officers and crew also lied to the Coast Guard and destroyed evidence including a printout from the engine control room computer that contained key information. Additionally, senior ship officers created false and backdated personnel evaluations intended to discredit the whistleblower.

Sentencing has been scheduled for Oct. 16.

The Coast Guard Criminal Investigations Division and the Coast Guard Heartland District investigated the case.

Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana and Senior Litigation Counsel Richard A. Udell of the ENRD’s Environmental Crimes Section are prosecuting the case.