Legal

Aegean Litigation Trust loses case against ex-staff of Aegean Marine Petroleum Network

ALT on 12 September 2019 filed a complaint against former Directors and Officers of Aegean over alleged breach of fiduciary duty due to misuse of over USD 300 million in funds.

Published

6 years ago

July 15, 2020

Admin

The Aegean Litigation Trust (ALT), which represents several creditors acting against the now defunct Aegean Marine Petroleum Network Inc. (Aegean), have lost its case against the bunkering firm’s former Directors and Officers at the United States District Court for the Southern District of New York on 8 July 2020, according to the judgement document obtained by Manifold Times.

ALT on 12 September 2019 filed a complaint against E. Nikolas Tavlarios, Peter C. Georgiopoulos, John P. Tavlarios, and George Konomos to the U.S. court over alleged breach of fiduciary duty.

The alleged breach ultimately resulted in Aegean Founder Dimitris Melisanidis’ misappropriation of over USD 300 million in funds.

The Melisanidis-owned consultancy OilTank Engineering and Consulting (OilTank) was involved in a project to build a storage facility in Fujairah where $58 million of the project’s $221.9 million cost remain unaccounted for, claimed ALT.

OilTank also received at least $68 million in satisfaction of allegedly fraudulent consulting invoices relating to the Fujairah oil storage project, it further claims.

An alleged fake trade receivables scheme which took place after the completion of the Fujairah oil storage project saw Aegean transfer $186 million to OilTank between June 2015 and January 2018 through $200 million of overstate accounts receivables at Aegean.

Melisanidis used a subsidiary of Aegean to enter 40 fake contracts with four shell entities (representing approximately 8.05 million metric tons of fuel oil) to accumulate the $200 million to conceal the transfers.

Standard of Review

U.S. District Judge Naomi Reice Buchwald noted the former Directors and Officers defended themselves from claims by dismissing the ALT complaint for “failure to state a claim upon which relief can be granted”.

She agreed, and stated such pleading: “requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.”

Duty of Care

ALT’s complaint centred around an alleged failure by Aegean’s former Directors and Officers to monitor the company; it accused the group of breaching fiduciary duties, including duty of care.

However, the Judge found ALT’s asserted breach of fiduciary duty claim to be a Caremark claim, which implicates only a breach of the duty of loyalty.

She listed six purported ‘red flags’ of Melisanidis’ alleged fraud activities which included a criminal history before founding Aegean in 2005, the unaccounted $58 million in the OilTank project and the 40 fake contracts to several shell companies.

However, she stated the developments does not mean the former Directors and Officers knowing of such activities when they occurred.

“Directors and officers, however, cannot consciously disregard purported red flags of which they are unaware,” she explained, while adding, “the Court accordingly concludes that plaintiff has failed to state his Caremark claim against defendants.”

“Defendants’ motion to dismiss is granted, and plaintiff’s request for leave to amend is denied. The Clerk of Court is respectfully directed to terminate all motions pending in this case and to close it,” she concludes.

A timeline organised list of events preceding the current development have been recorded by Manifold Times below:

Published: 15 July, 2020

Winding up

Singapore: Liquidator of Selco (Shipyard) Pte Limited issues notice of dividend

Fifth and final dividend to admitted creditors of Selco (Shipyard) is payable from 13 July, according to Government Gazette notice.

Published

1 day ago

July 13, 2026

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A notice of dividend for Selco (Shipyard) Pte Limited, which is currently in compulsory liquidation, was published on the Government Gazette on Friday (10 July).

The following are the details of the notice:

Name of Company : Selco (Shipyard) Pte Limited (In Compulsory Liquidation) Co. Reg. No. 196800580K
Address of Registered Office : 7 Straits View, Marina One East Tower, Level 12, Singapore 018936
Court : High Court of the Republic of Singapore
Number of Matter : Companies Winding Up No.: 125 of 1986
Amount per centum : 0.499 cents to a dollar
First and final or otherwise : Fifth and final dividend
When payable : From 13th day of July 2026
Where payable : c/o PricewaterhouseCoopers Advisory Services Pte Ltd, 7 Straits View, Marina One East Tower, Level 12, Singapore 018936

Photo credit: Benjamin Child
Published: 13 July, 2026

Vessel Arrest

Malaysia: MMEA detains tugboat with undocumented 10,000 litres of diesel in Kuala Langat

Inspection found MYR 5,000 in cash on the vessel and 10,000 litres of diesel, of which the skipper failed to present any document or permit authorising the transport of the diesel fuel.

Published

1 day ago

July 13, 2026

Admin

Malaysia: MMEA detains tugboat with undocumented 10,000 litres of diesel in Kuala Langat

The Malaysian Maritime Enforcement Agency (MMEA) on Friday (10 July) said it detained a tugboat during an enforcement operation in Selangor waters.

Selangor MMEA director Captain Abdul Muhaimin Muhammad Salleh said the vessel was detained at about 6.35am at about 4.7 nautical miles 0.1 nautical miles from the estuary of Sungai Langat, Kuala Langat.

He said the initial inspection found that the vessel in question was operated by a 44-year-old skipper along with a 23-year-old crew member, both Indonesian nationals.

Further inspection found that the vessel did not have a mandatory insurance coverage, including the Limitation of Liability for Maritime Claims (LLMC).

“Inspection also found 10,000 litres of diesel and MYR 5,000 in cash on the vessel,” he said.

“The skipper also failed to present any document or permit authorising the transport of the diesel fuel, raising suspicions regarding the ownership of the controlled items.”

The tugboat and both crew members were brought to the Pulau Indah Marine Police Force jetty before they were handed over to the Selangor MMEA for further action.

He added that the case is being investigated under the Immigration Act 1959/63, the Control of Supplies Act 1961, and the Merchant Shipping Ordinance (MSO) 1952.

Photo credit: Malaysian Maritime Enforcement Agency
Published: 13 July, 2026

Legal

Evergreen Marine director questioned, offices searched in Taiwan insider trading probe

Investigators searched 10 locations, including Evergreen Marine’s offices, and summoned Chang, his brother Chang Kuo-cheng and eight others for questioning over alleged breaches of Taiwan’s Securities and Exchange Act.

Published

5 days ago

July 9, 2026

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Chang Kuo-hua, a board director of Taiwanese shipping giant Evergreen Marine, has been questioned by Taiwanese prosecutors as part of an investigation into suspected insider trading involving shares of Evergreen Marine Corp, according to Taipei News on Tuesday (7 July).

The Taipei District Prosecutors’ Office on Monday instructed investigators to search 10 locations, including Evergreen Marine’s offices, and summoned Chang, his brother Chang Kuo-cheng, former senior Evergreen executive Ko Li-ching and six others for questioning over alleged breaches of Taiwan’s Securities and Exchange Act.

According to the report, the investigation stems from a shareholder complaint filed in 2024 alleging that Chang purchased approximately 98.6 million Evergreen Marine shares before the company disclosed the sale of about TWD 13 billion (USD 405 million) worth of shares in EVA Airways in 2023.

Later, Taiwanese media reported that Chang Kuo-hua was released on a TWB 120 million bail after he was questioned by prosecutors.

In a filing to the Taiwan Stock Exchange on 6 July, Evergreen Marine confirmed that the Investigation Bureau of the Ministry of Justice conducted relevant searches and investigations at the company.

It added that the company is cooperating with the investigation procedures.

“The company is operating normally, and this incident has no significant impact on the Company’s financial condition or business operations,” it said.

Photo credit: Evergreen Marine Corporation
Published: 9 July, 2026