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Owner of Unlicensed Charter Boat Pleads Guilty for Fatal Capsizing

Stimulus Money
The capsized boat at the pier, July 2022 (NYPD)

Published Oct 15, 2024 11:04 PM by The Maritime Executive

The owner and operator of an unlicensed and overcrowded charter boat that capsized in Hudson River in 2022 killing a woman and her nephew is facing 10 years in prison after pleading guilty to misconduct and neglect.

Richard Cruz, 32, admitted to causing the deaths of a 48-year-old woman and a seven-year-old boy following the capsizing of the speedboat Stimulus Money in the Hudson River in July 2022. Cruz is set to be sentenced in January next year and faces up to 10 years in prison. 

Cruz had purchased the boat about three months earlier and conducted boat “tours” for paying customers on multiple occasions. However, he did not have United States Coast Guard (USCG) licensing or a certificate of inspection, which are required for a vessel to operate with paying customers on board.  

On July 12, 2022, Cruz took Stimulus Money out on the Hudson with 13 people on board, exceeding the small boat's maximum capacity. Despite a small craft advisory for high winds and waves, he operated the boat at high speed, and it capsized.

When Stimulus Money flipped over, all 13 people were thrown overboard. 11 survivors were rescued by the NYPD, FDNY and good samaritan vessels. The woman and her nephew got trapped underneath the capsized vessel and were found unconscious 25 minutes later. They were pronounced deceased and the coroner determined that they had drowned.

Cruz has pleaded guilty to one count of misconduct and neglect of a ship officer resulting in death. “This prosecution should send a message to all captains and operators of commercial vessels that there will be consequences when they fail to follow the federal regulations and safety protocols that exist to keep passengers safe,” said Damian Williams, United States Attorney for the Southern District of New York.