United States Attorney Karin Immergut announced today the entry of
guilty pleas and sentencing of MMS Co. Ltd. (MMS), a Japanese ship management
company, on felony charges relating to ocean pollution. Under the agreement,
MMS will plead guilty to three counts of failing to accurately maintain
oil pollution records and one count of obstruction of justice. MMS will
pay a fine of $2 million and be subject to a court supervised environmental
compliance plan for the fleet it manages. Up to $1 million of the fine
will be directed to community service environmental projects.
The case involved the MV Spring Drake, a large ocean-going bulk carrier
ship that was in Portland, Oregon on January 30, 2004, picking up a
load of wheat. A routine inspection by the United States Coast Guard
revealed evidence that the ship may have been violating international
ocean pollution regulations. Further investigation was conducted by
the Coast Guard Investigative Service and the Environmental Protection
Agency Criminal Investigation Division, assisted by the Washington Department
of Ecology.
On February 5, 2004, a federal grand jury in Portland indicted MMS,
Grus Line Shipping SA, a Panama company and owner of the ship, and Shashank
Pendse, a resident of India and the Chief Engineer of the MV Spring
Drake.
On March 8, 2004, Pendse pled guilty to a felony charge of knowingly
failing to accurately record discharges and disposals of oily wastes
in the ship's Oil Record Book, a document required under international
law. He was sentenced to 30 days in federal prison.
In the course of the investigation, it was determined that the MV
Spring Drake had committed similar violations concerning its Oil Record
Book during visits to the ports of Long Beach and San Francisco. The
United States Attorneys Offices in Los Angeles and California filed
criminal charges against MMS. Those charges are being resolved as part
of the plea and sentencing in Portland. Of the $2 million fine, $500,000
will be paid for each of the charges filed by the United States Attorneys
Offices' in San Francisco and California.
As a result of the agreement, $500,000 will be directed to a special
fund created for environmental enhancement projects on the lower Columbia
River and adjacent coasts. The Columbia River Estuary and Coast Fund
is a partnership between the United States Fish and Wildlife Service
and the National Fish and Wildlife Foundation, a non-profit organization
that will administer the environmental projects under the supervision
of the government agency. The agency and the National fish and Wildlife
Foundation have created a similar fund, the Northern Coastal California
Restoration Fund, which will receive $250,000 out of the fine paid to
settle the charges out of that district. The Channel Islands National
Park will receive $250,000 from the fine amount of the case filed by
the U.S. Attorneys Office in Los Angeles.
This case is the latest in a series of cases brought by the United
States Attorneys Offices on the West Coast as part of a coordinated
vessel pollution initiative. The initiative involves cooperation between
the U S Attorneys Offices, the Untied States Coast Guard, the Environmental
Protection Agency and the Washington Department of Ecology.
United States Attorney Karin J. Immergut said she was pleased with
the resolution of the case. "We have another maritime fleet under an
environmental compliance plan as a result of this prosecution. The oceans
will be cleaner. We are also able to devote a large amount of money
to enhancing the environment of the Columbia River estuary, which is
a lasting benefit to the public." US Attorney Immergut said the result
is possible only through the combined efforts and cooperation between
the agencies and U.S. Attorneys involved.
For more information contact Asst. US Attorney Robert Ross in Portland
at 503-727-1023.
