Stanships Sentenced to Pay Criminal Penalty

The Greek shipping company, Stanships Inc., has agreed to pay more than $1 million in penalties and fines after one of its ships discharged oil and failed to report it to authorities. Based out of Athens, Greece, Stanships has agreed to a $700,000 criminal penalty, a $525,000 fine, and a $125,000 community service payment after pleading guilty in New Orleans federal court.

Prosecutors said crew members on the M/V Doric Glory, a Panamanian-flagged vessel, acted in violation of the Act to Prevent Pollution from Ships (APPS), and the Clean Water Act, when they knowingly allowed oil to leak in its stern tube, while not keeping a record of the problem. They further alleged that the oily-water separator was not functioning properly from December 2009 through May 2010. Engineering crew members aboard the M/V Doric Glory installed what is known as a “magic pipe,” which is used to by-pass the oil-water separator and allows the crew to discharge oily-waste water directly into the ocean without treatment.

To conceal the by-pass of the oil-water separator, a device required by law, the engineering crew then falsified the oil record book, which is a log maintained by the chief engineer and is also required by law to be accurate. The oil record book onboard the Doric Glory however, contained omissions and false entries.

Sentencing is set for September 29, 2010.