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Korean Corporate Owner of Cargo Vessel Sentenced to Pay $2.2 Million for Conspiracy and Falsifying Records

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Blog

Korean Corporate Owner of Cargo Vessel Sentenced to Pay $2.2 Million for Conspiracy and Falsifying Records

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1 Min Read

June 5, 2009

On April 24, 2009, ship operator STX Pan Ocean Co. Ltd. (Korea) pled guilty to four felony offenses, including conspiracy, falsifying records, and making false statements. STX was sentenced to serve four years probation and pay $2.2 million in penalties, $200,000 of which will be delivered to the National Fish and Wildlife Foundation. STX was also ordered to implement a detailed environmental compliance plan, which includes monitoring of its fleet-wide operations, updated training for crew members, and engineering alterations to protect gulf and ocean waters.

The illegal activity occurred onboard the cargo ship M/V Ocean Jade from July to October 2008. In late July, Chief Engineer Hong Hak Kang ordered several crew members to dump approximately 10 barrels of oily waste water directly into the ocean. On September 27, Chief Officer Jeong Gyu Lee instructed several crew members to dispose of oily waste directly into the ocean using a flexible plastic hose that was draped over the side of the vessel. In addition, Chief Engineer Kang and an unnamed engineering officer falsified entries into the ship's oil record book from August to October by using an established formula rather then recording the actual amounts of oily waste and sludge transferred, burned or discharged.

When the shipped arrived in the Port of Tampa on October 7, its officers presented the falsified record books to Coast Guard Investigators, and several crew members provided false statements about the waste discharge amounts to the investigators. Chief Officer Lee and Chief Engineer Kang both plead guilty and were sentenced to time served and three years probation, and Kang was fined $1,500.

The case was investigated by the U.S. Coast Guard, Coast Guard Investigative Service, and the Environmental Protection Agency.

This entry has been created for information and planning purposes. It is not intended to be, nor should it be substituted for, legal advice, which turns on specific facts.

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