Why No Prosecution of the Engineers on the Caribbean Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess?

According to the DOJ, engineers on the Caribbean Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess by-passed the oil-water separators (OWS) and released oily substances into the oceans. These employees of Princess used a number of techniques, including the so-called "magic pipes" and running clean water past the sensors of the OWS to prevent the system from triggering an alarm. The engineers lied and falsified oil logs on the ships. 

On the Caribbean Princess, the senior ship engineers dismantled the bypass pipe and instructed crew members to lie once a whistleblower reported the environmental violations.

These illegal practices on the Princess cruise ships took place over a nine year period of time.

Why didn't the DOJ arrest a single one of the engineers engaged in the illegal practices?  I have received many inquiries from people asking why no one, including cruise executives, will serve jail time?

Today, gCaptain reported that "two high-ranking ship engineers were sentenced to prison Thursday Star Princess after being convicted of using a so-called “magic pipe” to illegally dump oil sludge and wastewater overboard from their ship and then attempting to cover it up." The sentencing involved the chief engineer and second engineer of the Ocean Hope, a Greek operated cargo ship, who were convicted of conspiracy, violating the Act to Prevent Pollution from Ships, obstruction of justice and witness tampering by a federal jury in Greenville, North Carolina.

Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division stated: “This case shows that polluting the ocean with oily waste and sludge will land you in jail . . ."

Cruden was also involved in the Princess Cruises investigation, where the misconduct involved more ships for a far longer period of time.

So why the difference?  Princess Cruises and parent company Carnival Corporation clearly wanted to put this debacle behind them, so they apparently cut a deal which eliminated the possibility that the DOJ would be eliciting sworn testimony from any of the shipboard employees. The DOJ press release indicated that Princess engineers on the Caribbean Princess believed that the shore-side superintendent, like the chief engineer on the ship overseeing the cover-up, suffered from the “braccino corto” complex (an Italian expression for a cheap person whose arms are too short to reach his wallet).

So the engineers' testimony would have clearly implicated Princess Cruises' shore-side supervisors. And once its was proven that an audit of the vessel expenses would have revealed that there were no costs for offloading and treating the oily waste, the only issue is how many people in Princess Cruises' and Carnival's headquarters in Santa Clarita and Miami were involved in the conspiracy. The cruise executives wanted to maintain plausible deniability which would not be possible if their senior engineers were going to face prosecution and began pointing their fingers at the corporate offices. So Princess Cruises negotiated a settlement that included only a fine and a probation period, but no jail time for any of its executives or even its senior engineers.

The DOJ touted that the case involved the "the largest-ever criminal penalty involving deliberate vessel pollution." But the reality is that polluting the oceans will not land you in jail if you are an engineer on a cruise ship who can implicate the owners and executives in the lies and cover-up.  

Have a thought?  Please leave a comment below or join the discussion on our Facebook page.

Other articles about this issue:

Princess Cruises Pollution Cover-Up: Are the Greedy Cruise Executives Untouchable?

Princess Cruises Pollution Cover-Up: What Did the Executives Know?

Deliberate Dumping, Cover-Up and Lies: DOJ Fines Princess Cruises $40,000,000.

Photo credit: Star Princess - Jim Walker

Princess Cruises Pollution Cover-Up: Are the Greedy Cruise Executives Untouchable?

The DOJ has a history of not arresting cruise executives notwithstanding how widespread the dumping of oil or chemicals in the nations's waters may be. Will the most recent dumping incidents by Carnival's subsidiary, Princess Cruises, culminating in a $40,000,000 fine be any different? 

Throughout the 1990's, Royal Caribbean engaged in repeated dumping of everything from oil to chemicals, including dry-cleaning fluid, printing press solvents and photographic chemicals, into the waters from here in Miami all the way to Glacier Bay in Alaska. The Coast Guard and DOJ caught it using "magic pipes" and falsifying oil logs. The cruise line nonetheless continued to dump oil, lie to the Coast Guard and flaunt the authority of the former head of the DOJ, the late Janet Reno, until the agency leveled increasingly stiff fines of $1,000,000, $8,000,000 and $18,000,000.

Royal Caribbean fought the federal government fiercely back in the late 1990's, arguing that because it was a Liberian corporation, it was not subject to U.S. environmental laws - an argument rejected by Royal Caribbean Pollution - DOJ Most Wantedthe U.S. courts here in Miami. The cruise line's dumping was so pervasive and defiant that many joked back in those years that the executives could see Royal Caribbean cruise ships dumping oil right outside of the executives' windows at their headquarters at the port of Miami.

But the DOJ arrested no one at Royal Caribbean headquarters in Miami; instead, the DOJ focused its prosecution efforts on a Greek engineer who worked on one of the cruise line's ships. But, some say, it was a half-hearted effort by the DOJ. The engineer eventually walked out of a hotel in Miami when the FBI wasn't paying attention and flew out of the jurisdiction back to Greece. (He remains technically on the top ten most wanted list of the U.S. Environmental Protection agency).

The New York Times wrote an article Sovereign Islands: Gaps in the Sea Laws Shield Pollution By Cruise Lines. The Times wrote that each Royal Caribbean ship was spending around $380,000 per year in operating an oil water separator ("OWS") and disposing of the waste ashore. "By saving this money, a ship's officer could receive bigger year's end bonuses. The savings was the government's strongest evidence that senior management may have known of the conspiracy . . . "

If any cruise executives should have been arrested for the environmental crimes, many say that the executives at Royal Caribbean were the most likely culprits. But it didn't happen. 

Carnival Corporation also has a checkered history of widespread use of "magic pipes" and falsifying oil logs on its cruise ships. It was particularly bad in the 80's and 90's and culminated in 2002 when the DOJ announced that Carnival had pled guilty to dumping oil and lying about it.  Carnival's guilty plea revealed that the corporation used the same tricks that the engineers on Princess ships more recently used. Over 15 years ago, the DOJ concluded that on numerous occasions from 1996 through 2001, Carnival's "engineers intentionally flushed clean water past the sensors of the (OWS) meters. By doing this while discharging was in progress, the engineers tricked the meters to register the oil content in the clean water (0 ppm), instead of the oil content in the bilge waste. The control valves thereby remained in overboard positions, and oily waste was dumped into the sea without regard to the 15 ppm oil content legal limit."

This is the same methods as what the DOJ recently found on Carnival's ships operated by Princess Cruises.

Back in 2002 the DOJ stated that "overboard discharges of oily waste while clean water was being flushed past the meter sensors occurred on several ships, including the TROPICALE, Cruise Line PollutionSENSATION, FANTASY, ECSTASY, PARADISE and IMAGINATION. Carnival Corporation also admitted that this conduct, which allowed engineers to knowingly dump oil into the sea in quantities that exceeded the legal limit, was intentionally misrepresented in the oil record books of the ships."

So are we to conclude that the exact same widespread illegal practices used in the late 1990's, including the same "magic pipe" and flushing-the sensors-with-clean-water methods, which occurred as late as 2013, took place without any knowledge by the cruise executives at the helm of Carnival Corporation for almost a fifteen year period of time?

Who were the cruise executives who should have known about the wrongdoing?  Of course, Micky Arison was the CEO of Carnival from 2003 until July 2013. He collected around $75,000,000 in compensation during this period.  In 2012, Arison paid himself $90,000,000 as a bonus.  So, in total compensation and bonuses, Arison received over $165,000,000 while the illegal dumping at Princess Cruises continued. Forbes places Arison's current net worth at $7,800,000,000 (billion). 

Travel Weekly reported that as of the end of 2014, "the five mostly highly paid executives at Carnival Corp. earned a combined $32.7 million (in compensation a year), including $6.5 million for Costa Group CEO, Michael Thamm, $6.1 million for departed Carnival Cruise Lines President and CEO, Gerry Cahill, $6.1 million for Chief Operations Officer Alan Buckelew (who was the former CEO of Princess), and $5.2 million for CFO, David Bernstein."

Carnival generated $134,899,000,000 (billion) in income from 2004 through 2013, and netted $17,202,000,000 (billion), according to its annual statements.  Consider that Carnival and the other cruise lines pay virtually no international, federal, state or local taxes on their cruise ship profits.

So were the cruise executives concerned that their fabulous wealth would be touched? Hardly. This is an industry of fat-cat executives who know that they are untouchable. It is fundamentally different from other industries where racketeers are prosecuted or where the top dogs will eventually do the right thing for the shareholders when the corporation is caught doing something wrong. Consider what Wells Fargo & Co. Chief Executive John Stumpf recently did when his company was caught opening millions of checking, saving and credit card accounts for customers without their knowledge. Stumpf agreed to forfeit compensation worth about $45 million from around 910,000 shares in un-vested stock awards, and agreed to forego his bonus this year. Another executive who was in charge of the division where much of the illegal activity took place, will give up about $19 million worth of stock. Wells Fargo’s board of directors also said that other executives could lose stock awards or even other compensation already paid to them.       

But there is no way the wealthy cruise executives are going to voluntarily let loose of a single dime of their ill-gotten profits. The tax-paying public will just have to pony up a little more to cover the difference, is what they think.

The cruise executives' greed is staggering. The $40,000,000 fine, after all, is just a drop in the ocean Micky Arison Carnivalof wealth enjoyed by Carnival executives. Consider that Caribbean Cruise Line, and related marketing and timeshare development companies, agreed to settle a class-action lawsuit to the tune of up to $76,000,000. This case (involved the nuisance of millions of robocalls in violation of the Telephone Consumer Protection Act) involved nothing comparable to discharging oil around the world. 

Yes, the latest pollution scandal earned Princess Cruises and Carnival a certain amount of bad press, but the cruise industry has always been able to navigate through criticism that it is a dirty industry at its core. The only difference that the environmental fines will make is if it deters the misconduct of those who benefited the most from the deliberate pollution. Unfortunately, a $40,000,000 fine to executives who collected many times that amount in compensation and bonuses is meaningless.

It is well past time that corporate activists demand disgorgement of executive bonuses and resignation of executives who have caused harm to corporate shareholders. Likewise, the DOJ needs to wake up. Cruise lines will continue to pollute unabated, as they have done since the1990's (or earlier), unless and until corporate executive are held personally accountable.

The DOJ and state prosecutors have levied a total of over $90,000,000 in fines against the cruise industry over the last twenty years. The fines are always accompanied with press releases discussing years of probation imposed on the companies which, in the case of Carnival, was quickly violated back in the early 2000's without any real consequence. The magic pipes, rigged OWS sensors and falsified log books from the 1990's continued until the mid-2010's. Carnival and Princess executives have again pointed their crooked fingers at shipboard employees while disavowing any knowledge of what was happening on their ships. With a collective sigh of relief that the DOJ again didn't arrest a single cruise executive for involvement in the scandal, they quickly agreed to pay the fine.  

Have a thought? Please leave a comment below or join the discussion on our Facebook page.

Read our other articles about the Princess Cruises deliberate pollution and cover-up:

Princess Cruises Pollution Cover-Up: What Did the Executives Know?

Deliberate Dumping, Cover-Up and Lies: DOJ Fines Princess Cruises $40,000,000.

Photo Credit:  

Michael Evangelos Psomadakis, Chief Engineer Nordic Empress - Environmental Protection Agency Most Wanted Poster.

Micky Arison - Steve Mitchell - USA TODAY Sports via 7500toholte.sbnation.com/ 

Princess Cruises Pollution Cover-Up: What Did the Executives Know?

The $40,000,000 fine levied against Princess Cruises last week raises the issue of what cruise executives knew about the illegal dumping of oil-contaminated waste from the Caribbean Princess cruise ship and the other illegal practices which took place on the Star Princess, Grand Princess, Coral Princess and Golden Princess.

As the Department of Justice (DOJ) points out, this is not an isolated case involving a rogue ship employee. The criminal misconduct  took place for eight years from 2005 to 2013 (involving the Caribbean Princess) and involved several other cruise ships as well. According to the DOJ, the illegal conduct included not only the "magic pipe" to circumvent the oily water separator on the Caribbean Princess but involved other other illegal practices on the Caribbean Princess as well the Star Princess,Princess Cruises Caribbean Princess Grand Princess, Coral Princess and Golden Princess.

The DOJ suggested that the pollution crimes committed by Princess were motivated by avoiding the costs associated with properly offloading the oily waste in port. The DOJ says that subordinate engineers on the Caribbean Princess nicknamed the chief engineer (responsible for using the "magic pipe" to discharge oily waste in August of 2013) “braccino corto” (a person with short arms), which the DOJ explained is "an Italian expression for a cheap person whose arms are too short to reach his wallet."

According to the DOJ, some Princess engineers expressed the same opinion of the Princess shore-side superintendent.

Princess Cruises' reaction to the DOJ charges seems designed to isolate its shore-side managers and executives from direct responsibility. Although it admitted that its ship employees' conduct was "inexcusable," and that its oversight was "inadequate," it denied that its management in its headquarters knew anything illegal was occurring before August 2013.

Gauging from comments on social media, the public seems skeptical.  

Consider some of the comments to the Miami Herald article Carnival-Owned Ship Caught in Pollution Scheme. Now They’re Paying $40 Million for It:

"Of course management knew. Why would a lowly worker come up with this idea? He could care less because he gets paid the same whether or not they follow regulations. Corporate wanted to save time and money . . . "

"Typical cutting corners to increase profits while exploiting foreign workers who work for paupers wages."

Similar comments were posted by readers of USA TODAY's article Princess Cruises to Plead Guilty to Polluting Ocean:

"Something this significant, all top executives had to have known. It takes money and time to dispose of waste. Were there no questions when time was dramatically saved and cost of waste management decreased drastically? Come on...."

A reader of our Facebook page commented:

"Financial penalties like this are a drop in the ocean for a company the size of Carnival; but does anyone up the chain get jail time? I work in the cruise industry, and I (we) don't need arrogant (executives) who are looking for their next bonus for "cost savings" thinking that international waters are their big dumping ground."

The purpose of an illegal "magic pipe" is to save costs.  Pursuant to international requirements, oily bilge water from a cruise ship must be treated to the point that the oil content is below 15 parts per million before it is can be discharged into the ocean. The oil-water separators (OWS) are expensive to maintain and operate. The oil that is separated from the bilge water must be stored and then offloaded from the ship onto barges or pumped ashore to be incinerated at licensed facilities. But the "magical pipe" avoids the costs associated with maintaining the OWS and removing and disposing of the waste products.  

Like other cruise lines, Carnival Corporation places considerable pressure on all its brands to reduce costs. The costs associated with the operation of a ship are carefully scrutinized and analyzed from ship to ship. A significant variation in costs between a ship offloading and disposing oil compared to a ship dumping oil at sea via a "magic pipe" should be readily observed by any corporation. It is doubtful that the low waste disposal costs of the Caribbean Princess, compared to a ship with a functioning oil water separator (OWS), didn't come to the attention of the shore-side managers as well as those in the company and parent corporation who audit the costs of operating the cruise line's fleet of cruise ships. My opinion is that someone on the corporate side probably knew what was really happening on one of the company's $500 million ships, or perhaps they turned a blind eye toward the monkey business. 

The closest that the DOJ will come to holding the cruise executives responsible is saying that the illegal discharge "was the result of more than just bad actors on one ship. It reflects very poorly on Princess’s culture and management."

This slap on the wrist ignores the fact that when the Caribbean Princess started its eight years of discharging oily wastes into the oceans, Carnival was still on probation following a fine of $18,000,000. In 2002, as part of its felony plea agreement, Carnival and its "subsidiaries and operating companies" were required to undertake a five year court-supervised environmental program involving every "cruise ship and shoreline facility in the U.S. and abroad." Carnival was required to " . . . hire new personnel and managers, whose sole responsibilities . . . [were] to ensure compliance with local, state, federal and international environmental requirements . . . (and) subject their operation to an independent auditor, approved by the government." 

Princess Cruises was not yet owned by Carnival in 2002 but Carnival took ownership and control of Princess Cruises the following year. It is less than clear whether Carnival took steps to ensure that Carnival-owned ships operated by its subsidiary Princess Cruises complied with the 2002 consent agreement with the DOJ after Princess Cruises came under Carnival's control in 2003 when Carnival was beginning the DOJ probation period. Regardless, shortly after it started service, the Caribbean Princess began a course of criminal conduct until 2013 which would make the ship's engineers the poster-children of maritime environmental criminals.   

Is the public really expected to believe that the executives at Carnival or Princess didn't know anything about the cost-saving criminal conduct over the course of nearly a decade?

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Some people people have suggested that president Jan Swartz should resign but she was not the executive at the helm of Princess during the 2005 - 2013 time period. She worked for Princess as a vice president in sales, marketing, business development and customer service for some of the years in question before leaving the cruise line. She returned to Princess as the top CEO in December 2013, replacing President and Chief Executive Officer (CEO) Alan Buckelew who had been the Chief Executive Officer of Princess Cruises from June 2007 to November 2013 and its President from February 2004 to November 2013, as well as the Chief Operating Officer of Carnival since December 1, 2013.  Perhaps Swartz's return to the cruise line was part of the reshuffling that took place after the illegal "magic pipe" was reported to the U.K. Maritime & Coastguard Agency (MCA) a few month earlier?  

Photo Credit: Caribbean Princess in the Caribbean heading for Miami - Cruiser1210 - CC BY-SA 3.0, commons / wikimedia.

You can read our first article about the DOJ fines here: Deliberate Dumping, Cover-Up and Lies: DOJ Fines Princess Cruises $40,000,000.

Have a thought? Please leave a comment below or join the discussion on our Facebook page.

U.S. Department of Justice Investigating Whether Caribbean Princess Violated Pollution Laws

A number of news sources are reporting the U.S. Department of Justice (DOJ) joined an investigation by the U.K. whether Princess Cruises' Caribbean Princess cruise ship violated international pollution laws.

Bloomberg News states that Carnival Corporation announced that the DOJ joined an investigation being conducted by the U.K. Maritime & Coastguard Agency which had initiated an investigation last August. 

The news sources are reporting that last September, Carnival reached an agreement with the U.S. Environmental Protection Agency (EPA) to spend $180 million to reduce sulfur emissions from its fleet of cruise ships. Carnival agreed to to install scrubbers and filters on its ships to reduce the toxic emissions of its cruise ships. 

This news account was posted on a Princess Cruises' message board but there has been no discussion yet.

It is not clear whether the joint U.S.-U.K. Caribbean Princess investigation is related to air emission issues or some other type of pollution violation. Princess Cruises' ships were often cited in the past for violating Alaska's waste-water regulations

The Caribbean Princess was last in the news when it returned to Houston after a norovirus outbreak.

Anyone with information exactly when and what the Caribbean Princess is accused of violating please leave a comment or join the discussion on our Facebook page 

Photo Credit:  Wikipedia / Yankeesman312

December 1, 2016 UpdateDeliberate Dumping, Cover-Up and Lies: DOJ Fines Princess Cruises $40,000,000.