FOR IMMEDIATE RELEASE ENR THURSDAY, APRIL 25, 1996 (202) 514-2008 TDD (202) 514-1888 GUILLERMO GIL U.S. Attorney (809) 766-5656 TOP MANAGER AND CORPORATIONS CONVICTED IN PUERTO RICO OIL SPILL DISASTER WASHINGTON, D.C. -- After seven days of trial, a federal jury in San Juan, Puerto Rico returned felony convictions against a top manager and three corporations for their role in a January 1994 oil spill that left more than 750,000 gallons of oil in the waters off Puerto Rico's beautiful and popular Escambron Beach. At the time of the spill, Escambron Beach was famous for its pristine beaches and was an important source of tourist revenue. In the trial conducted before U.S. District Judge Hector M. Laffitte, prosecutors charged that the companies had sent out an unseaworthy vessel, had negligently discharged oil, and had failed to notify the Coast Guard that a hazardous condition existed on the vessel. The government also charged an individual company official with sending out an unseaworthy vessel and failing to notify the Coast Guard. The jury returned guilty verdicts on all charges. Convicted were Pedro Rivera, General Manager of Bunker Group Puerto Rico, his employer, and Bunker Group Incorporated and New England Marine Services. The corporations operated the vessels or employed the crews involved. The Puerto Rico oil spill occurred during the night of January 7, 1994, after a faulty towing cable broke while the Emily S tugboat was towing the Morris J. Berman tank barge from San Juan, Puerto Rico to the island of Antigua. The barge was loaded with nearly 35,000 barrels of Number 6 fuel oil. (A barrel contains about 42 gallons.) According to evidence introduced at trial, the Emily S' towing cable had broken previously that same night. At the direction of the Captain, Roy A. McMichael, Jr., the tugboat crew fashioned a makeshift repair even though they had the supplies aboard to make a complete repair. With one exception, the crew of the Emily S went to sleep and the towing cable snapped once again. The barge ran aground near Escambron Beach spewing about 750,000 gallons of oil into coastal waters. McMichael, who testified during the trial, pleaded guilty to violating the Clean Water Act in November 1994 on charges that he negligently caused the oil spill. The First Mate, Victor Martinez, who was supposed to be on watch, also pleaded guilty to violating the Clean Water Act. The government charged defendant Pedro Rivera with knowing of the repair to the faulty cable but failing to notify the Coast Guard as required. The jury convicted the defendants of violating the 1972 Ports and Waterways Safety Act, the Oil Pollution Act of 1990, and of sending an unseaworthy vessel to sea. "The oil spill was a terrible disaster for Puerto Rico which could have been prevented. The jury has vindicated the interests of the Island. This case shows our continuing commitment to preserving the environment in Puerto Rico," said U.S. Attorney Guillermo Gil. "The jury's verdict constitutes a message to companies operating in Puerto Rico that crimes against the environment will not be tolerated," added Mr. Gil. "An accident waiting to happen is no accident. Vessel operators must not put the environment at risk," said Lois J. Schiffer, Assistant Attorney General in charge of the Justice Department's Environment and Natural Resources Division. The maximum sentence for Rivera is five years in prison. The corporations, which are related to the Frank family of corporations in New York, are subject to a maximum criminal fine of $1.2 million or twice the gross pecuniary loss, a fine that could run higher than $100 million. Damage and response costs relating to the oil spill have exceeded $81 million. The Frank family of corporation involves a web of more than 50 corporate entities, which includes the three corporations convicted today. On April 6, 1994, Judge Laffitte issued an order placing the assets of the Frank family companies under Court supervision. Mr. Gil and Ms. Schiffer commended Coast Guard Investigations, EPA Criminal Investigative Division and the FBI for their outstanding work in jointly investigating the case. The trial was prosecuted by Charles A. DeMonaco and Michael J. Woods of the Justice Department's Environmental Crime Section and Assistant U.S. Attorney Miguel A. Periera of the U.S. Attorney's Office for the District of Puerto Rico. ### 96-191