Whistleblower Provisions in Action
On March 21, 2007, Overseas Shipholding Group Inc. (“OSG”) pleaded guilty and was sentenced to pay $27,000,000.00 for violations of the Clean Water Act as amended by the Oil Pollution Act of 1990, the Act to Prevent Pollution from Ships. (See January 3, 2007 post).
In addition to the fine, OSG was sentenced to serve a three-year term of probation during which it must implement and follow a stringent environmental compliance program that includes a court-appointed monitor and outside independent auditing of OSG ships trading worldwide. In my January 3, 2007, post, I reported on the Beaumont, Texas portion of the case in which OSG pleaded guilty. OSG is still awaiting sentencing in that case (OSG has already agreed to pay another $10,000,000.00).
In imposing the sentence on OSG, United States District Judge Reginald C. Lindsay granted a motion to award twelve (12) current and former OSG crew members with $437,500.00 each for their role in blowing the whistle on OSG’s illegal conduct. The provision for a whistleblower award is set forth in the Act to Prevent Pollution from Ships and provides that individuals providing information leading to conviction may be awarded up to half of the criminal fine.
More later.
As always, feel free to call me or e-mail me with any questions at walter.james@jamespllc.com.
WDJiii