Ship Manager Pleads Guilty to Dumping Oily Water Off Coast of New Orleans

Eagle Ship Management LLC (ESM), based in Stamford, Connecticut, pleaded guilty 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, the U.S. Department of Justice announced.

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.

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.

Source: Office of Public Affairs, U.S. Department of Justice