Fleet Management Ltd. Sentenced to Pay $10 Million for Oil Spill and Coverup

Three years after one of its ships caused a major oil discharge in San Francisco Bay, Fleet Management Ltd. was sentenced to pay $10 million for causing the Cosco Busan spill and subsequent cover-up.

Judge of the District Court in San Francisco ordered Fleet to commit $2 million of the total $10 million for further marine environmental projects in San Francisco Bay. The Hong Kong-based ship management firm violated and pleaded guilty to the Oil Pollution Act of 1990, in addition to felony obstruction of justice and false statement charges for creating forged and false documents, intending to deceive the United States Coast Guard investigations of the incident.

In addition to major monetary penalties, the ship management firm was also ordered to implement a comprehensive plan for heightened training and planning for ships engaged in trade with the United States. The training will better prepare masters for command of the vessels, provide classroom and shipboard navigation and ensure the vessel's have thorough navigation plans for each U.S. port.

Upon pleading guilty August 13, 2009, Fleet admitted to concealing ship records and creating false and fictitious documents to influence the Coast Guard's investigations. A false berth-to-berth passage plan was created after the incident and other false documents including passage planning checklists. The collision caused damage on the port side of the ship, resulting in a significant fuel leak and death of indigenous wildlife. The pilot pleaded guilty March 6, 2009 and was sentenced to 10 months in prison, one year of supervised release and 200 hours of community service.