NEW ORLEANS, LA — Eagle Ship Management LLC (ESM), a ship management firm located in Connecticut, admitted guilt on Tuesday to criminal offenses related to the unlawful discharge of oil-contaminated waste into U.S. waters near New Orleans and subsequent cover-up, breaching the Act to Prevent Pollution from Ships (APPS).
The unlawful discharge — which involved around 10,303 gallons of oily bilge water — took place in March 2021 from the M/V Gannet Bulker, a bulk cargo vessel registered under the Marshall Islands and managed by ESM. Federal prosecutors stated that the pollution was intentional, not reported, and executed at night while the vessel was anchored close to the Southwest Pass of the Mississippi River.
“This was not an accident — it was a willful violation of our environmental laws followed by a coverup,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice vigorously prosecutes these offenses to protect our waters and hold violators accountable.”
Under the plea agreement — which still requires court approval — ESM will pay a $1.75 million criminal fine and serve a four-year term of probation, including independent environmental audits.
A Dangerous Leak and a Deliberate Dump
According to court records, the situation started when a failed repair attempt on board resulted in the uncontrolled flooding of the ship’s engine room bilges with around 39 cubic meters of ballast water. This water combined with waste oil, creating a dangerous environment filled with floating oil sheens — which posed risks such as electrocution, power failure, and loss of steerage.
Rather than reporting the flooding or properly handling the contaminated water, the ship’s Chief Engineer ordered that the waste be pumped overboard using a fire pump, circumventing the necessary oily water separator and oil content monitor — equipment that is required by both international and U.S. environmental regulations.
None of the discharge was recorded in the ship’s legally mandated Oil Record Book, which is routinely inspected. This omission made the records false and in violation of MARPOL Annex I and U.S. law.
The Chief Engineer, whose name has not been disclosed to the public, faced separate prosecution and was sentenced to one year and one day in prison for his involvement in the illegal discharge and subsequent obstruction of justice.
Whistleblower Tip Exposed Violation
The U.S. Coast Guard initiated its investigation following a tip received through social media from a crew member on March 14, 2021, who indicated that the engine room had been flooded and that oily waste was intentionally released during the night.
This crew member subsequently became a target for retaliation. Prosecutors allege that ship officers attempted to undermine the whistleblower’s credibility by fabricating false and backdated personnel records. Later, ESM’s corporate attorney facilitated the safe removal of the crew member from the vessel and arranged for shoreside accommodation, recognizing the safety concerns involved.
“This case highlights the importance of whistleblowers and the serious risks they sometimes face,” said Acting U.S. Attorney Michael M. Simpson of the Eastern District of Louisiana. “Our office is committed to working with our federal partners to protect not only the environment but those who come forward to expose wrongdoing.”
Obstruction of Justice
Court documents reveal that following the Coast Guard’s inspection of the Gannet Bulker, the ship’s officers and crew participated in various obstructive actions. These actions included deceiving inspectors, destroying computer printouts that might have disclosed the discharge, and submitting false documents — all aimed at hiding the unlawful pollution.
In spite of directives from ESM’s shore-based operations team to assist authorities, the senior officers on the vessel made efforts to impede the investigation.
“The Coast Guard and the Coast Guard Investigative Service will not tolerate such disregard for our laws and the marine environment,” said Special Agent in Charge Damon J. Youmans of the Coast Guard Investigative Service’s Gulf Field Office. “Our mission is to protect U.S. waters, and we will hold accountable those who attempt to pollute and deceive.”
Sentencing and Oversight
Sentencing for Eagle Ship Management LLC is set for October 16, 2025.
If the plea agreement is accepted, the company will enter a period of court-supervised probation and will undergo regular audits by independent inspectors for the next four years.
The investigation was carried out by the Coast Guard Investigative Service, the Heartland District of the Coast Guard, and the Coast Guard Criminal Investigations Division. The prosecution is led by Assistant U.S. Attorney G. Dall Kammer and Senior Litigation Counsel Richard A. Udell from the DOJ’s Environmental Crimes Section.
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