Whistleblower Tip Leads to $1.75 Million Fine for Ship Manager Over Oil Dumping Off New Orleans

Eagle Ship Management LLC (ESM) has pleaded guilty to deliberately discharging more than 10,000 gallons of oil-contaminated waste into U.S. waters near New Orleans, according to Justice Department officials.

The Stamford, Connecticut-based company admitted to violating the Act to Prevent Pollution from Ships (APPS) after crew members on their foreign-flagged bulk carrier, M/V Gannet Bulker, intentionally pumped oil-contaminated bilge water overboard while anchored near the Southwest Passage of the Port of New Orleans.

Court records show approximately 39 cubic meters (10,303 gallons) of oily waste was discharged without using required pollution prevention equipment, with no proper recordkeeping.

The illegal dumping came to light after a whistleblower crew member alerted authorities through social media in March 2021, reporting that the engine room had flooded and the resulting contaminated bilge waste was deliberately pumped overboard under cover of darkness.

If the court approves the plea agreement, ESM will pay a $1.75 million criminal fine and serve four years of probation with oversight from an independent technical expert.

The vessel’s chief engineer has already been sentenced to a year and a day in prison in a separate case for his role in the pollution incident and subsequent obstruction of justice.

Company officials admitted to a coordinated cover-up attempt that included retaliation against the known whistleblower, lying to Coast Guard investigators, destroying evidence from the engine control room computer, and creating false, backdated personnel evaluations intended to discredit the whistleblower.

“The Department of Justice vigorously prosecutes violations of the laws that protect U.S. ports and waters,” said Acting Assistant Attorney General Adam Gustafson. “The criminal conduct involved here was serious, including intentional pollution and a deliberate coverup.”

Maritime safety experts note that flooded bilges present serious dangers beyond environmental concerns, creating risks of electrocution, power loss, and compromised steering ability.

“We will continue to hold accountable those who violate these laws and endanger our marine environment,” said Special Agent in Charge Damon J. Youmans of the Coast Guard Investigative Service’s Gulf Field Office.

The company’s sentencing has been scheduled for October 16. The case was investigated by the Coast Guard Criminal Investigations Division and Coast Guard Heartland District, with prosecution led by Assistant U.S. Attorney G. Dall Kammer and Senior Litigation Counsel Richard A. Udell.

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