Environmental Law

A Win for the Good Guys?

By Walter James

On Friday, October 20^th, United States District Judge Henry Lee Adams conducted a post-conviction hearing and at the close of the evidence issued a ruling from the bench that immediately terminated Kassian Navigation?s probation.  The company had previously voluntarily accepted criminal responsibility for unknown acts of its shipboard staff in presenting a false oil record book to Coast Guard officers during an inspection at Jacksonville. 

Kassian through its counsel, George M. Chalos, argued that Kassian was entitled to the termination of its probation under an agreement with the government.  At the hearing, Kassian presented evidence of its environmental compliance practices and systems.  As may be expected, the government disagreed with Kassian and argued, among other things, that Kassian had sought to minimize costs and otherwise did not deserve such a reward from the court.  On the direct examination (by the government), a Coast Guard officer testified and sought to discredit both the substance and effectiveness of Kassian?s post-plea practices.  On cross examination, however, the Coast Guard officer conceded that Kassian was in compliance and was a good company that was doing a good job.  No specific instances of non-compliance were identified and numerous extraordinary practices were acknowledged by the Coast Guard officer. 

Interestingly, the United States Department of Probation advised the Court that the Probation Department had no reason to object to Kassian?s bid for early termination of probation. 

Will this have any impact on ?magic pipe? cases in general?  The maritime enforcement is a practice group within the USDOJ.  The USDOJ?s policies, conviction rate and size of fines paid still frustrates the USDOJ as it continues to see a whole host of ?magic pipe? and false records cases.  Kassian was represented by George M. Chalos.  You can contact him directly at gmc@chaloslaw.com.

George Chalos does point out an interesting (okay, maybe only to me) fact.  He says ?The DOJ is very fast to post stories about convictions and fines on their website. Why shouldn?t a good story like this ? where a company?s exemplary behavior is acknowledged by the Court ? also be newsworthy for the government?? 

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

Full post as published by Environmental Crimes Blog on November 16, 2009 (boomark / email).