Cruise Ship Court Cases
US V. Carnival Corp
April 22, 2002
Guy A. Lewis, United States Attorney for the Southern Districtof Florida; William P. Tompkins, Special Agent in Charge, United StatesDepartment of Transportation, Office of Inspector General; Rick D. Langlois,Special Agent in Charge, United States Environmental Protection Agency, CriminalInvestigation Division; Hector M. Pesquera, Special Agent in Charge, Federal Bureau of Investigation; James A. Devino, Special Agent in Charge, Coast Guard Investigative Service; and John P. Clark, Special Agent in Charge, United States Customs Service:
Announced today that Carnival Corporation, the world's largest operator of passenger cruises, pled guilty to federal criminal charges pertaining to the falsification of records of oil contaminated discharges atsea. Immediately after the change of plea, United States District Court Judge K.Michael Moore sentenced Carnival Corporation to five years probation, ordered that they pay $18 million in fines and community service.
Furthermore, JudgeMoore placed Carnival Corporation on an environmental compliance program. In a joint factual statement filed with the district court, Carnival Corporation admitted that on numerous occasions during a period of five years, certain ofits vessels discharged oily waste into the sea in violation of health and safety regulations that strictly control the amount of oil that passenger cruise lines can discharge overboard.Under the plea agreement filed in federal court in Miami, Carnival Corporation agreed to pay a $9 million fine, the largest criminal fine imposed on a cruise line operator for environmental violations in a district.
An additional $9million will be paid as court ordered community service to various groups tofund environmental projects, initiatives, emergency response, and educationdedicated to the preservation and restoration of the environment and ecosystemsin South Florida.
The company also agreed to undertake a court-supervised program at every cruiseship and shoreline facility in the United States and abroad for the next fiveyears. As special conditions of a five-year term of probation, CarnivalCorporation must implement and enforce an environmental compliance program thatwill require Carnival Corporation, its subsidiaries, and operating companies, tohire new personnel and managers, whose sole responsibilities will be to ensurecompliance with local, state, federal and international environmentalrequirements.
The company also will be required to subject their operation to anindependent auditor, approved by the government. Carnival Corporation will alsomake periodic reports to the federal court, the United States Attorney's Office, the United States Coast Guard, and other federal agencies. Along with comprehensive training, Carnival Corporation will provide a toll-free hotlinethrough which employees and passengers may anonymously report suspected environmental violations.
United States Attorney Lewis stated, "This prosecution should serve as a strongmessage that companies will be held accountable for acts that endanger ourenvironment. To assure a clean, safe environment, we must take a zero toleranceapproach. Our children and children's children deserve no less.
Finally, I want to commend Carnival Corporation for its cooperative approach in resolving thismatter. "Rear Admiral James "Jay" Carmichael, Commander, Seventh Coast Guard District, stated that "The United States Coast Guard takes its environmental protectionand law enforcement duties very seriously. We are grateful for the opportunityto work with the Department of Justice and other agencies to investigate and resolve this case.
The maritime industry is a valuable component of this nation's economic strength and a partner in our efforts to protect ourenvironment. We hope this case makes it clear that there is nothing to be gained– and much to lose – from circumventing established environmental protectionmeasures."Randall G. Wood, Director, Coast Guard Investigative Service, stated, "This investigation was indicative of the Coast Guard Investigative Service's supportof the Coast Guard's commitment to maritime environmental crimes enforcement.
The case was highly reflective of similar environmental crimes cases conductedby the Coast Guard Investigative Service, both past and present."Carnival Corporation owns several subsidiaries and operating companies that sail40 cruise ships throughout the world.
Carnival Corporation has accepted responsibility for its conduct and fullycooperated with the government's investigation. The company will place afull-page advertisement in the Miami Herald apologizing to the public for itsconduct. Carnival Corporation has committed to adopting a compliance programthat will make it the industry leader in sound environmental practices.
Mr. Lewis commended the joint investigative efforts of the Department ofTransportation, Office of Inspector General; the United States EnvironmentalProtection Agency, Criminal Investigation Division; the Federal Bureau ofInvestigation; the United States Coast Guard, Office of Investigations andAnalysis, the Seventh Coast Guard District and the Coast Guard InvestigativeService; the United States Customs Service; the Florida Department ofEnvironmental Protection, Division of Law Enforcement; and the Miami-Dade PoliceDepartment, Environmental Investigations Unit.
