United States Attorney Joseph S. Van Bokkelen
Northern District of Indiana

M01-204 S. Main Street
South Bend, IN 46601

FOR IMMEDIATE RELEASE CONTACT: Mary L. Hatton May 16, 2007 PHONE: (219) 937-5603

Fax: (219) 852-2770

GARY O. BURNHAM SENTENCED TO 30 MONTHS IN MARINE INVESTIGATION

South Bend, IN—The United States Attorney's Office announced today that Gary O. Burnham, age 52, of Michigan City, Indiana, was sentenced to thirty (30) months imprisonment followed by two year supervised release for operating as a ship’s captain on a forged license, neglect of duty by a seaman resulting in sinking of the M/V Margaret Ann vessel, and negligently causing a diesel fuel spill in Lake Michigan. He was also ordered to pay $750,000 in restitution to Holly Marine Towing, the owner of the vessel.

On March 31, 2005, the merchant vessel Margaret Ann sank in Indiana waters in Lake Michigan while towing two barges. The captain of that large towing vessel was Burnham. Burnham used tow lines of approximately 75 feet when he should have used tow lines greater than 400 feet. Also, Burnham was working on a written report and failed to keep a proper watch on the tow and the barges being towed. As a result of these failures and omissions, the short tow lines tripped the M/V Margaret Ann onto her side during tow operations causing her to sink and placing the captain and crew of the M/V Margaret Ann in immediate danger of suffering serious injury and loss of life. The Coast Guard had to rescue Burnham and several crew members.

The sinking of the M/V Margaret Ann caused a 250 gallon diesel spill in navigable waters. Diesel fuel, a hazardous substance, leaked from the fuel tanks of the M/V Margaret Ann into Lake Michigan waters. More than $750,000 in damages have been caused by the sinking, including more than $68,000 for pollution mitigation, more than $86,000 to raise the M/V Margaret Ann, and more than $680,000 to overhaul and repair the M/V Margaret Ann.

In the course of the marine investigation into the sinking and rescue, the Coast Guard Investigative Service discovered that Burnham had falsified his Coast Guard mariner’s license. Burnham had been a licensed captain and master from 1989 through 1999. But after 1999 Burnham had let his United States Coast Guard marine mariner’s license lapse. Instead of renewing his license, Burnham forged a United States Coast Guard marine mariner’s license certificate and provided this forged document to his employer, Holly Marine. Burnham continued to operate as a captain of Holly Marine merchant vessels, including the M/V Margaret Ann, on this forged and altered license for about three years and through the date of the Margaret Ann’s sinking.

This case was investigated by the U.S. Department of Homeland Security and the Coast Guard Investigative Service (Chicago), and was prosecuted by Assistant United States Attorney Donald J. Schmid.

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