USA

Caution with whistleblowers in US

We have advised the need to be aware of the various US environmental laws, the infringement which would result in substantial fines and imprisonment.

It is also important to know that US law encourages whistleblowers to provide information which would lead to a prosecution. The Act to Prevent Pollution from Ships allows any person offering information which lead to a successful prosecution an award of up to 50% of the fines.

A recent example (non marine) is the criminal prosecution on 14 May 2004 of the drug maker Pfizer for the illegal promotion of the drug Neurontin in which a settlement has been agreed for US$430 million. The information was offered by a whistleblower Mr. David Franklin who will receive a multimillion dollar payment as part of the settlement.

There are several incidents which involve the crew being awarded up to US$500,000 for reporting illegal discharges to USCG.

It is important for shipowners to ensure the loyalty of the crew when calling to US ports, and any disgruntled or unhappy crew creates a substantial risk he will be a whistleblower. Further it is advisable for shipowners to employ a ship agent in the US known to the owner.