Micky ArisonIn an exclusive story, Cruise Law News has learned that cruise industry giant Carnival Corporation plans to incorporate its business in the United States (in Florida). Carnival intends to announce this historic development tomorrow, April 2nd, at Carnival’s headquarters in Miami. 

Since 1972, Carnival has incorporated its business and registered its cruise ships in the country of Panama. For over 40 years, Carnival cruise ships have flown the flag of Panama in order to avoid the onerous safety regulations, excessive labor laws, unreasonable environmental laws, and high taxes of the United States of America. 

Cruise Law News learned of this historic event when high-profile maritime lawyer Jim Walker bumped into Carnival’s Chairman Micky Arison at court side last night when Arison’s basketball team, the Miami Heat, lost to the San Antonio Spurs.  Maritime ace lawyer Walker asked Arison: "Micky, if Dwayne Wade earns several hundreds of million dollars from Carnival and pays tens of millions of dollars in U.S. taxes, don’t you think it is fair that Carnival – which earns over 16 billion dollars a year in cruise ticket sales – pays its fair share of U.S. taxes?"

Perhaps it was the euphoria of Carnival repealing the automatic man overboard safety law, but Micky was ecstatic. "Yes, let’s do it!" he said handing maritime lawyer Walker a half-eaten hot dog and three-quarters of a warm Bud Light which a Miami cheerleader handed Micky in the first quarter of the previous game a few days earlier.

While quickly consuming the beer and hot dog in the excitement of the moment, cruise lawyer Walker happened to have Florida articles of incorporation which he handed to Micky to sign as well as U.S. flags to fly on the Carnival fleet of cruise ships. 

Arison has been under intense pressure lately following fires, collisions, sinkings, poop-cruises, pirate-Carnival Corporationattacks, norovirus outbreaks and a Jon Secada concert which have ruined the last 100 Carnival cruises. Senator Jay Rockefeller recently called Arison a "scallywag" on national TV. Rockefeller challenged Arison to pay his fair share of Carnival CorporationU.S. taxes on the billion-dollar bounty his foreign-flagged cruise ships collect from the U.S. taxpaying citizens on the high seas.

Micky commented that he was embarrassed that his father Ted, the founder of Carnival Cruise Lines 40 years ago, denounced his U.S. citizenship in order to avoid paying some 10 billion dollars in U.S. taxes.

"I want to make certain that Carnival pays one hundred percent of our U.S. tax obligations (estimated to be over $5,000,000,000 a year) plus be subjected to the most rigorous U.S. safety, wage,and labor laws and the most stringent U.S. environmental regulations, Micky announced over the arena’s PA system: "It’s time that poor, over-worked crew members from India and Nicaragua who earn $500 working 360 hours a month be entitled to the full benefit of U.S. employment laws, a 401(k) retirement fund, severance pay, and a college fund for their children!"

While appreciative of Arison’s change of heart, sources say Walker was miffed that Arison demanded that he pay $6 for the remains of the hot dog and $7.50 for the rest of the Bud Light.

 

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According to the SEC, Royal Caribbean CEO Richard Fain (below right) sold 87,488 shares of his RCL stock at an average price of $76.41, for a total value of $6,684,958.08.

After the transaction, cruise executive Fain still owns 1,139,613 shares of his cruise line stock valued at approximately $87,077,829.33.

I wrote a similar article last December entitled Royal Caribbean Executive Cashes In Again about Royal Caribbean’s Chief Operating Officer Adam Goldstein unloading 90,000 shares of Richard Fain Royal Caribbean cruise executive RCL stock. COO Goldstein sold a small portion of his RCL stock at an average price of $77.31 for $6,957,900.00. Following the the sale, he still owns 310,724 shares of his cruise stock, valued at approximately $24,022,072.

All of this is peanuts compared to the vast wealth of Carnival’s Micky Arison who recently sold $433,700,000 worth of Carnival stock.

The cruise business is like running a crooked bootlegging business in the 1930’s. There’s no taxes to pay, the feds leave you alone, and the money rolls in by the boatloads. The profits are enormous. For the cruise executives, it must be liking hitting the jackpot every single night.

I curious to hear from the crew members of these two cruise lines regarding what they think these cruise executives have done to benefit the hard-working crew?

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Photo Credit: Flickr – United Way of Miami-Dade

Carnival Corporation Chairman Micky Arison reportedly just sold 10,000,000 (million) shares of Carnival stock for approximately $433,700,000 (million).

The stock transaction was a "block sale" performed by a trust to benefit Arison. All of Arison’s shares reportedly are held either directly or indirectly in various trusts.

By June of last year, Arison had unloaded over $490,000,000 of his cruise stock in 2014

Micky ArisonBy my calculations he has sold well over $900,000,000 of his cruise line’s stock in the last 12 months. 

After this latest sale, the Arison family reportedly still has about 159,200,000 shares of Carnival stock. 

This vast wealth was generated by incorporating the cruise line in Panama and registering Carnival-owned cruise ships in places like Panama and the Bahamas in order to avoid all U.S. taxes, safety regulations, and wage & labor laws so Carnival can pay the bulk of its crew members peanuts.

Carnival-owned Costa paid just a little over $1,000,000 in fines after the Costa Concordia disaster, which killed 32 people, in order to escape accountability in the criminal trial of Captain Schettino. 

Who says that money can’t justice?

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Photo Credit: New York Post

Carnival Chairman and major stockholder Micky Arison sold 212,474 shares of Carnival stock on Friday, September 19th at an average price of $40.22 for a total of $8,545,704.28, according to the Securities & Exchange Commission.

Yes, this is a serious amount of money. But its peanuts for this cruise tycoon. 

By last June, Arison had unloaded over $490,000,000 of Carnival stock in a little over 3 months.

Arison is the richest person in Florida. He’s worth between 5 and 6 billion dollars.

I was interviewed in a special about him last year.

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http://www.nbcnews.com/id/32545640

 

In the last week, Carnival’s Micky Arison sold over $78,000,000 of his cruise line’s stock.

On June 6th, Arison sold 961,717 shares of the cruise company’s stock at an average price of $40.24, for a total value of $38,699,492.08.

On June 10th, Arison sold 992,369 shares at an average price of $40.35, for a total value of $40,042,089.15.

Micky ArisonHe also sold $395,000,000 in Carnival stock in early March.  By my calculations, Arison freed up over $473,000,000 in cash in 3 months. You can track Arison’s Carnival stock transactions here.

It’s an extraordinary amount of money. Yet Carnival continues to screw its crew members, left and right. Consider reading Greed On the High Seas: "Poop Cruise" & Concordia Cruise Executive Cashes $395,000,000 of Carnival Stock.

Speculation in publications like this and this suggest that he may be interested in buying the U.K. Aston Villa soccer club. 

Considering how badly Arison’s Miami Heat have been playing basketball in the NBA finals (now down 3-1 to the San Antonio Spurs), perhaps Arison will be spending some time in the future in England watching soccer.

June 16 2014 Update: On June 12th Arison sold another 445,008 shares of Carnival stock at an average price of $40.15, for a total transaction of $17,867,071.20.  That means, by my calculations, Arison has unloaded over $490,000,000 in a little over 3 months. 

 

Photo Credit: Steve Mitchell-USA TODAY Sports via 7500toholte.sbnation.com/

In an exclusive story, Cruise Line News has learned that cruise industry giant Carnival Corporation recently incorporated its business in the United States (in the state of Delaware). Carnival intends to announce this historic development tomorrow, April 2nd, at Carnival’s headquarters in Miami.

Since 1972, Carnival has incorporated its business and registered its cruise ships in the country of Panama. For over 40 years, Carnival cruise ships have flown the flag of Panama in order to avoid the onerous safety regulations, excessive labor laws, unreasonable environmental laws, and high taxes of the United States of America.

Cruise Law News’ discovery of this historic event came about when prominent maritime lawyer Jim Walker bumped into Carnival’s Chairman Micky Arison at court side when Arison’s championship basketball team, the Miami Heat, won another game. Maritime ace lawyer Walker asked Arison: "Micky, if Dwayne Wade and LeBron James earn several hundred million dollars from Carnival and pay tens of Mickey Arison Miami Heat Carnival Cruisemillions of dollars in U.S. taxes, don’t you think it is fair that Carnival – which earns over 15 billion dollars a year in cruise ticket sales – pays its fair share of U.S. taxes?"

Perhaps it was the euphoria of the Heat beating the Portland Trailblazers by two points in a close victory, but Micky was ecstatic. "Yes, let’s do it!" he said handing maritime lawyer Walker a half-eaten hot dog and three-quarters of a warm Bud Light which a Miami cheerleader handed Micky in the first quarter of the previous game a few days earlier.

While quickly consuming the beer and hot dog in the excitement of the moment, expert cruise lawyer Walker happened to have U.S. articles of incorporation which he handed to Micky to sign as well as U.S. flags to fly on the Carnival fleet of cruise ships.

Arison has been under intense pressure lately following fires, collisions, sinkings, poop-cruises, pirate-attacks, flounderings, Concordia-disasters, norovirus outbreaks and a Jon Secada concert which have ruined the last 37 Carnival cruises.  Senator Jay Rockefeller recently called Arison a "scallywag" on national TV. Rockefeller challenged Arison to pay his fair share of U.S. taxes on the billion-dollar bounty his foreign-flagged cruise ships collect from the U.S. taxpaying citizens on the high seas.

Micky commented that he was embarrassed that his father Ted, the founder of Carnival Cruise Lines 40 years ago, denounced his U.S. citizenship in order to avoid paying some 10 billion dollars in U.S. taxes.

Arison admitted that he felt guilty selling 1% of his Carnival stock for a $395,000,000 profit while suspending the crew member’s retirement benefits.

"I want to make certain that Carnival pays one hundred % of our U.S. tax obligations (estimated to be over $5,000,000,000 a year) plus be subjected to the most rigorous U.S. safety, wage,and labor laws and the most stringent U.S. environmental regulations, Micky announced over the arena’s PA system! "I want Carnival Cruise Line to be synonymous with Old Betsy – the U.S. Stars and Stripes – what the U.S. stands for! Its time that indigent crew members from India and Nicaragua who earn $500 working 360 hours a month be entitled to the full benefit of U.S. employment laws, a 401(k) retirement fund, severance pay, and a college fund for their children!" 

While appreciative of Arison’s change of heart, sources say Walker was miffed that Arison demanded that he pay $6 for the remains of the hot dog and $7.50 for the rest of the Bud Light.

Last week I wrote an article about Royal Caribbean CEO and President Adam Goldstein cashing in over $2,300,000 worth of Royal Caribbean stock, still leaving him with around $19,000,000 worth of his company’s stock. 

It’s difficult to justify the enormous wealth of the cruise executives given the fact that the cruise business is rigged to create gigantic profits free of U.S. taxes. Cruise lines like Royal Caribbean (Liberia) and Carnival (Panama) incorporated in foreign countries in order to avoid U.S. taxes, labor and wage laws, and safety regulations. The cruise lines pay dirt cheap wages to laborers from India and the Caribbean islands. They provide no benefits at all to their loyal crew members.

Cruise executive compensation isn’t tied to whether the line’s ships sink or catch on fire. One of the Micky Arison Carnival CruiseRoyal Caribbean cruise ships, the Grandeur of the Seas, caught on fire for two hours last year yet cruise CEO Goldstein still raked in millions. Cruise executives are rewarded for squeezing blood out of the stone. 

Tax-fee Royal Caribbean pays a salary of only $50 a month to its waiters and cabin attendants who it works like dogs, relying on the tax-paying cruise passengers to pay tips so the employees can try and make a living.  Yet Royal Caribbean is stealing, some say, some of the passenger money intended for tips and using the "tips" to pay the salaries of the non-tip earning crew members. Last year Royal Caribbean fired over one-hundred employees in its corporate offices here in Miami because of "tough economic times." Yet the cruise line executives like CEO Goldstein and chairman Richard Fain still pocketed millions and millions and millions at the end of the year.

No doubt the cruise employees are getting the shaft. The crew is getting poorer while the fat cat executives are getting richer and richer.  

The greediest cruise executive in my opinion is, hands down, no doubt-about-it, by-far Micky Arison. He makes Goldstein look like chump change. Arison is the news this weekend after agreeing to sell up to 10 million shares of Carnival Corporation stock. At $39.50 per share, that’s $395,000,000. 5 million shares were sold on Friday and the remaining shares will be sold over the next 15 months, After the sale is complete, the Arison family will still own 188,000,000 shares worth over $7,426,000,000.

What will multi-billionaire Arison do with the $395,000,000? Build medical clinics in Goa, India where most of his crew members come from? Fund the retirement benefits for his hard working Filipino crew members who have slaved away far-from-their-children for decades on his ships?  Create schools in Nicaragua where thousands of family members of Carnival crew members reside? No, no, no. The nearly $400 million in cash will be solely for his own tax and estate planning.

CEO Arison paid himself a $90,000,000 bonus in 2002 – the same year of the Costa Concordia disaster. In my assessment, he seems like a money hoarder without a social conscious. Here are some of the infamous incidents involving Carnival Corporation and its brands over the last few years:

It is an amazing spectacle to watch Arison enrich himself irrespective of the Concordia capsizing and the Triumph engine room fire. 

Just last week we commented on Carnival’s press release, issued during the middle of the Triumph "poop cruise" trial here in Miami. Carnival characterized the cruise passengers, who endured four days in the Gulf of Mexico after the negligently maintained old ship caught fire, as greedy.

I suppose it’s business as usual for Carnival to malign its Triumph cruise guests while chairman Arison is cashing in a fraction of his cruise stock during the middle of the Triumph trial for $395,000,000. 

 

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Its been nearly two years since the Concordia recklessly crashed into the rocks surrounding the little port of Giglio, killing 32 passengers and crew and terrorizing thousands.

The officers of the operator of the cruise line, Costa, and the owners of the owner, Carnival corporation, quickly dumped 100% of the blame on the now disgraced captain, Francesco Schettino, who remains on trial for manslaughter and abandoning ship. 

Although salvors have up-righted the cruise ship during the highly published "parbuckling" maneuver at a cost of nearly one billion dollars, the ship is still sitting in the water at the port. 

Pier Luigi Foschi Costa Cruises The big news this week has been Carnival’s announcement yesterday that the former CEO of Costa Cruises is retiring.  

Pier Luigi Foschi was CEO at Costa Cruises at the time of the disaster. Many people believe that Foschi and other senior Costa officials knew that their captains were altering the cruise routes and performing dangerous "flybys" but diverted attention from themselves by foisting all of the attention and blame on Captain Schettino.

Carnival announced yesterday Foschi is retiring from the Carnival organization after 16 years. He had retired from Costa in the summer of 2012, six months after the Concordia capsized. Carnival Corporation then named him as the CEO of the Carnival-Asia operations. 

The Miami Herald says that Foschi is receiving a bonus of 1,250,000 euros ($1.7 million) as part of a separation agreement.

According to the Independent newspaper, Foschi was paid $3,970,000 in 2012, for the one year period after the Concordia debacle. He also reportedly has shares worth $4,700,000.

Carnival Chairman Micky Arison praised Foschi yesterday for his contribution to Carnival’s business.

Meanwhile, those Concordia passengers who did not accept Costa’s settlement offer of 11,000 euros are continuing to pursue lawsuits against Costa and Carnival. The Costa crew members affected by the Concordia disaster were essentially left out in the cold and were lucky if they ended up on another Costa ship.

Its a telling list of financial priorities. A billion dollars to salvage the Costa ship, millions of dollars for the Costa CEO, peanuts for the Costa passengers, and nothing for the Costa crew members.    

 

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Carnival Cruise LineSeveral news sources are reporting changes in the executive ranks at Carnival Corporation and its brands, Princess Cruises and Holland America Line. 

Carnival Vice Chairman and Chief Operating Officer (COO) Howard Frank will step down. He is slated to be an adviser to CEO Arnold Donald and Chairman Micky Arison. Jan Swartz becomes the new president of Princess Cruises, replacing President and Chief Executive Officer (CEO) Alan Buckelew who moves into the COO role at Carnival. Holland America Line CEO Stein Kruse will begin overseeing Princess Princess under the newly formed entity "Holland America Group." 

It seems like a family affair to me.  Everyone is just changing hats.

The changes become effective December 1, 2013.

I’m pleased to see Ms. Swartz promoted from vice president of sales, marketing and customer service at Princess to the position of president. It’s nice to see women advance in the men’s club.  

Cruise lines hate U.S. governmental scrutiny of their business operations.  

The whole purpose of incorporating their businesses and flagging their cruise ships in foreign countries is to avoid U.S. taxes and the scrutiny of federal regulators. This business model permits the cruise lines to pay virtually no U.S. taxes and to avoid U.S. wage, labor and safety laws. Cruise lines often conceal shipboard crimes and the industry’s abuse of crew members.

But one U.S. Senator, Jay Rockefeller of West Virginia, is taking the cruise lines’ lack of transparency head on. Following Carnival’s string of disabled cruise ships and nonchalant attitude towards its quests, Senator Rockefeller sent a letter to Carnival billionaire cruise CEO Micky Arison in March, inquiring into issues pertaining to the cruise line’s avoidance of taxes as well as issues regarding the safety of cruise passengers. You can read the letter here

Carnival’s letter back to Rockefeller dodged and weaved and argued and mostly avoided responding to Senator Rockefeller’s concerns. Carnival refused to disclose, for example, the number of victims of sexual assault – a topic that the cruise lines strenuously try to avoid talking about.  We summarized Arison’s defiant attitude in our article: Carnival CEO Arison’s Letter to Senator Rockefeller: Screw You!

Undaunted, Senator Rockefeller has sent another letter to Arison and has also sent letters to the CEO of Royal Caribbean Cruises (Richard Fain) and Norwegian Cruise Lines (Kevin Sheehan).

NCL Cruise CEO Kevin SheehanIn his letters yesterday, the Senator is inquiring into the internal safety audits which the cruise lines and the cruise association are allegedly conducting. At the recent cruise trade show on Miami Beach, the Carnival, Royal Caribbean and NCL cruise executives talked at length about their ability to learn from their own internal investigations but never stated that they would release the reports from the investigations.

This is the usual cruise line ploy: assuring the public that they are busy at work investigating themselves after cruise ships sink or catch on fire; however, they never ever disclose the results of their alleged investigations. Carnival said that it was conducting an internal audit of its operations after the Carnival Splendor was disabled after an engine room fire in 2010.  But Carnival has never released the results of its investigation. The public remains in the dark.

Senator Rockefeller is also again demanding that the cruise lines disclose the number of crimes, particularly sexual assault, on cruise ships. The cruise industry has been notoriously dishonest in revealing accurate crimes statistics. It usually defaults to conclusory, self-serving opinions that crime is "rare" while simultaneously concealing the true crime statistics.

At a prior Congressional hearing, Royal Caribbean responded to a Congressional inquiry by stating Royal Caribbean Cruise CEO Richard Fainthat 66 women were raped during a three year period.  But in a court case we handled, the cruise line was ordered to reveal that the actual number of such crimes was much higher.

The LA Times reported on the cover-up in an article: Cruise Industry’s Dark Waters.   

Royal Caribbean faced no consequence for misleading Congress back in 2006.  

The cruise lines’ response to Senator Rockefeller in due on May 24th.  

Will RCCL CEO Fain and NCL CEO Sheehan be transparent? Or will they join Arison in a game of hide and seek?