DOJ Announces Sea Star President Sentencing

On Friday, December 6, 2013, the U.S. Department of Justice announced the sentencing of former Sea Star Line, LLC president, Frank Peake, to five years in prison and the payment of a $25,000 fine for his participation in a conspiracy to fix rates and surcharges in the Jones Act trade between the continental U.S. and Puerto Rico. The three largest carriers in the trade, including Sea Star, have pleaded guilty and been ordered to pay more than $46 million in fines for their roles in the conspiracy. The sentencing serves as a stern reminder that the Department of Justice remains very interested in water carrier price fixing, and underscores the importance of Shipping Act compliance in the U.S.-foreign trade.