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First Engineer of ‘Zao Galaxy’ faces fine, jail term for abetting oily waste discharge

Dela Cruz was charged with abetting crew members to illegally dump oily bilge water while submitting bogus paperwork to the authorities as a cover up.

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ZAO GALAXY

The U.S. Department of Justice (DoJ) on Tuesday (20 April) said a federal jury convicted a Unix Line PTE Ltd First Engineer of aiding and abetting an environmental crime and obstruction of justice in connection with the intentional dumping oily bilge water from a commercial tanker in February of 2019.

“The crew members of the Zao Galaxy dumped oily bilge water into the ocean and then tried to cover up the environmental damage by submitting bogus paperwork to the United States Coast Guard,” said U.S. District Judge Jon S. Tigar. 

“As First Assistant Engineer of an ocean-going commercial tankship, Gilbert Dela Cruz was charged with ensuring the crew would follow the rules, not try to circumvent them.  This verdict will serve as a reminder that there are stiff penalties for those who try to violate federal and international rules designed to protect our precious natural resources from polluters.”

The DoJ said in January 2019, Dela Cruz, was the First Engineer of the M/T Zao Galaxy, a 16,408 gross-ton, ocean-going oil tankship operated by Unix Line Pte Ltd when it traveled from the Philippines to Richmond, California. 

On February 11, 2019, United States Coast Guard examiners boarded the Zao Galaxy while it was moored in Richmond to conduct an examination. 

During the examination, a crewmember passed a note to an examiner requesting a meeting after the inspection so that the crewmember could “tell something” about a “magic pipe” and “damage [to the] marine environment.” 

After the inspection and a follow-up investigation, the DoJ reported that Unix ultimately admitted a ship officer directed crew members to discharge oily bilge water overboard, using a configuration of drums, flexible pipes, and flanges to bypass the vessel’s oil water separator. 

On February 26, 2020, the company admitted the discharges were done knowingly and that they were not recorded in the vessel’s oil record book when it was presented to the U.S. Coast Guard during the vessel’s inspection. 

On March 20, 2020, Judge Tigar sentenced Unix to pay a fine of USD 1,650,000.00, placed Unix on probation for a period of four years, and ordered the company to implement a comprehensive Environmental Compliance Plan as a special condition of probation.

Notwithstanding these admissions, Dela Cruz denied responsibility for the environmental crimes and went to trial. 

In finding Dela Cruz guilty, the jury concluded Dela Cruz aided and abetted a violation of the Act to Prevent Pollution from Ships by causing the captain of the Zao Galaxy to maintain an inaccurate oil record book and that he also committed obstruction of justice.

According to the evidence presented at trial, in preparation for a Coast Guard inspection in Richmond, California, Dela Cruz ordered a lower level employee who worked as his assistant to dump oily waste from the ship’s engine room directly into the ocean using a “magic pipe.” 

Dela Cruz then worked to conceal the dumping by not recording the movement or discharge of oily waste in the ship’s oil record book, which he was responsible for. 

Dela Cruz ordered that certain pieces of equipment be repainted and the “magic pipe” be hidden to avoid Coast Guard detection.  During the Coast Guard’s inspection, Dela Cruz told his assistant who had dumped the oily waste overboard not to throw him “under the bus” and that they needed to get their stories straight for the Coast Guard.

A federal grand jury indicted Dela Cruz on October 24, 2019, charging him with one count of violating the Act to Prevent Pollution from Ships, one count of obstruction of justice, and one count of obstruction of an agency proceeding. 

The jury found Dela Cruz guilty of all three counts.  Dela Cruz currently faces a maximum of six years’ imprisonment and USD 250,000 for and three years of supervised release for the pollution count, 20 years’ imprisonment and USD250,000 for the obstruction of justice count, and five years of imprisonment and USD 250,000 for the obstruction of the agency proceedings count. 

Judge Tigar ordered Dela Cruz released on bond pending sentencing and scheduled the sentencing for June 11, 2021, at 9:30 a.m.

Related: U.S. court fines Singapore-based Unix Line USD 1.65 million over oily waste discharges
Related : Singapore-based Unix Line pleads guilty to illegally discharging bilge waste
Related : Singapore-based Unix Line faces charge over oily waste discharges


Photo credit: Marine Traffic / M.L.Jacobs
Published: 23 April, 2021

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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RESIZED Sora Shimazaki on Pexels

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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Winding up

Singapore: Liquidator of Nan Shan Maritime Pte Ltd issues notice of dividend

Third interim dividend to admitted unsecured claims of Nan Shan Maritime is payable from 15 July, according to Government Gazette notice.

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RESIZED Drew Beamer

A notice of dividend for Nan Shan Maritime Pte Ltd, which is currently in creditors’ voluntary liquidation, was published on the Government Gazette on Wednesday (15 July). 

The following are the details of the notice:

Name of Company : Nan Shan Maritime (Pte.) Ltd.(In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 201701967H
Address of Registered Office : 10 Anson Road, #10-10, International Plaza, Singapore 079903
Amount per centum : 5.00 Per Centum of all admitted unsecured, claims
First and Final or Otherwise : Third Interim
When Payable : 15 July 2026
Where Payable : Entitlements will be made by way of cheque.

 

Photo credit: Drew Beamer
Published: 16 July, 2026

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