Korean Corporation To Pay $2.2 Million for Falsifying Environmental Records

The Environmental Protection Agency, the U.S. Coast Guard and the U.S. Attorney’s Office for the Middle District of Florida showed how seriously they’re taking marine pollution and government record-keeping requirements this month. A joint investigation and prosecution between those offices led to the imposition of a huge penalty against an international shipping company in Tampa federal court.

Korean corporation STX Pan Ocean Co., Ltd. was sentenced earlier this month to four years probation and $2.2 million in penalties for conspiring to falsify and falsifying environmental compliance records. STX operates the commercial cargo vessel Ocean Jade.

Of that $2.2 million, $200,000 will go to the National Fish and Wildlife Foundation in partnership with the Pinellas County Environmental Fund. The court also ordered STX to implement a detailed environmental compliance plan.

STX pleaded guilty to four felonies back in April, including conspiracy, falsifying records, and making false statements. All of the charges related to actions by crew members of the Ocean Jade in 2008. Federal and international law requires that all ships comply with pollution regulations including proper disposal of oily waste water and sludge. Federal law also requires the crew to record each such disposal in an oil record book and in a garbage record book. Both books must be available for inspection by the Coast Guard if in U.S. waters.

According to court records, the Ocean Jade’s chief engineer ordered the crew to illegally dump ten barrels of oily waste water directly into the ocean last summer. A few months later, the ship’s chief officer made a similar order.

Entries into the M/V Ocean Jade’s oil record book during that time period were made by applying a pre-established formula, rather than recording the actual amounts of oily waste water and sludge transferred, burned, or discharged. The ship arrived in the Port of Tampa in October 2008, where its officers presented falsified oil and garbage record books to Coast Guard investigators. Crew members gave false statements about the dumping incidents as well.

In addition to the corporate charges, the ship’s chief engineer and chief officer were both charged individually. They pleaded guilty to felony offenses and were put on probation.