Swedish Shipping Line Sentenced for Environmental Crimes

The U.S. Department of Justice announced on March 10, 2009 that Holy House AB, a Swedish corporation, was sentenced to pay a $1 million fine, special assessment community services payments of $400,000 and serve three years probation for failing to maintain an accurate oil record book after illegally discharging oil-contaminated waste directly into the ocean.

The community service payments will help fund the congressionally-established National Fish and Wildlife Foundation, which helps restore and protect fragile marine habitats in New Jersey. Coast Guard authorities discovered the illegal activity during a routine inspection onboard the M/V Snow Flower in February 2008. Inspectors uncovered several discrepancies in the oil record book about the use and capacity of the ship's oily water separator. They also found a bypass pipe used to discharge waste contaminated water directly into the ocean.

The probation terms require the company to implement an Environmental Management System/Compliance Plan to prevent improper discharges from ships serving in U.S. ports that it operates and manages. The company must also hire a third-party auditor to assure compliance. The auditor will compose compliance reports to be delivered to the Coast Guard, the probation office, the U.S. Attorney's Office, and the U.S. Department of Justice Environmental Crimes Section. The Snow Flower's chief engineer, Igor Krajacic, previously pleaded guilty and was sentenced to a $8,000 fine.