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Texas Man Faces Prison Time for Illegal Charter Operation

Discussion in 'General Yachting Discussion' started by Capt Ralph, Dec 15, 2022.

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  1. Capt Ralph

    Capt Ralph Senior Member

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    spanish-princess.jpg

    Coast Guard and partner agency personnel conduct a joint operation and investigation of an illegal charter operation on Clear Lake in Kemah, Texas, May 18, 2022. U.S. Coast Guard Photo

    Mike Schuler

    December 14, 2022


    A 65-year-old boat captain is facing up to 10 years in prison and a $250,000 fine for operating an illegal charter cruise near Houston, Texas and lying to U.S. Coast Guard personnel.

    Gordon Johnson of Seabrook, Texas was taken into custody this week on violation of a U.S. Coast Guard captain of the port order, making a false statement, obstruction of a proper compliance inspection and forgery of ships papers, announced U.S. Attorney Alamdar S. Hamdani.

    The indictment was returned December 1 and unsealed Monday morning upon his arrest.

    Johnson allegedly operated the MV Spanish Princess without complying with an order of the highest ranking U.S. Coast Guard officer in the Houston-Galveston area, the Department of Justice said in a statement. The indictment further alleges he made false statements to USCG personnel, claiming he did not to have paying passengers on his vessel, when he actually did, and instructed passengers to lie by telling personnel they were not paying passengers. He also forged the signature of the seller of the vessel on a USCG bill of sale, according to the charges.

    The 67-foot vessel Spanish Princess had an active COTP Order restricting them from passenger operations, including the carriage of one or more passengers-for-hire, when the U.S. Coast Guard and partner agencies conducted a joint operation to terminate a charter voyage back in May. The vessel was suspected of violating the COTP Order, operating without a valid USCG Certificate of Inspection, operating without a valid Merchant Mariner Credential, operating without a valid Certificate of Documentation, and operating without enrollment in a drug and alcohol testing program.

    “Illegal charter operations are disconnected from the regulatory and safety reach of the Coast Guard’s Prevention Department,” said Bruce Davies, chief of the Investigations Division at Sector Houston-Galveston, following the operation. “Without the Coast Guard’s regulatory oversight, passengers’ safety falls upon the unqualified or unlicensed operators conducting these illegal charters. The Coast Guard will not accept these unsafe operations and will continue to pursue statutory and regulatory enforcement actions against these illegal operators.”

    If convicted, Johnson faces up to 10 years in prison as well as a possible $250,000 maximum fine. He could also be ordered to forfeiture the MV Spanish Princess.

    “The Coast Guard Investigative Service (CGIS) is firmly committed to partnering with law enforcement agencies to identify and stop those who pose a hazard to the boating public,” said Special Agent in Charge Brian Jeanfreau, CGIS Gulf Region. “Ensuring mariners are fully qualified to safely operate passenger vessels is of upmost importance to the U.S. Coast Guard.”

    Gordon Johnson was expected to appear for his initial appearance before U.S. Magistrate Judge Andrew Edison on Tuesday.

    Owners and operators of illegal passenger vessels can face maximum civil penalties of $60,000 or over for illegal passenger-for-hire-operations. Charters that violate a Captain of the Port Order can face over $95,000.
  2. Jorge Lang

    Jorge Lang Senior Member

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    If the USCG wants to be really busy, do those investigations in South Florida.
  3. YachtForums

    YachtForums Administrator

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    Looks like one of Harry Schoell's boats?
  4. Capt Ralph

    Capt Ralph Senior Member

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    Could be for sale soon.
    Cheap?
  5. Norseman

    Norseman Senior Member

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    That 65-year-old boat "captain" must be an idiot for risking his freedom, his bank account and his boat for being too lazy to get a USCG license, a proper vessel inspection, a drug test and a random drug program as well as equipment like type 1 life jackets with strobes, etc, etc.

    Not that hard and not that expensive. (I did most of it except the CG Inspection to set up my own charter operation 6 years ago)
    I even displayed big signs on both sides of my boats: Charter Boat for Hire..
    Come and inspect me CG.

    What a way to run a business: Cheat on everything and tell your passengers to lie if boarded: "This is Not A Charter"..:rolleyes:
    Glad he got caught, hope he spends time in the a Federal Penitentiary, aka the "Big House".
    Enjoy you big hairy cellmate going by the name Bruno the Horny. :D
  6. Capt Ralph

    Capt Ralph Senior Member

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    As all in and around 20500..
  7. Pascal

    Pascal Senior Member

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    it s not that simple with bigger boats where 99% of charterers want to have a group bigger than the 6 allowed on uninspected vessels under 100GT. He was most likely operating as a bareboat charter like so many used to. Problem is that as the owner he can not be on board the boat and must allow the charterer to choose a qualified captain.

    As soon as USCG boarding team finds out the owner is on board, or the boy came with crew, the bareboat scheme goes out the window and it is an illegal charter.

    the problem is that the law has not been updated in decades and the 6 pax/100GT limit is outdated. Back in the 70s or 80s, most charters were fishing charters in boats under 50’ on which the limit made sense. Nowadays, chargers on 60,70 and 80’ boats are common and the 6 pax limit makes no sense.

    instead of forcing all these boats into the bareboat gray area, the law needs to be updated to lower the 100GT bar at which you can have 12 pax down to 25 GT and mandates things like a second qualified crew and annual safety inspections.

    this would go a long way in making charters safer. It’s crazy to consider that a bareboat charter captain doesn’t even need to be licensed under the current rules
    Brian G likes this.
  8. DOCKMASTER

    DOCKMASTER Senior Member

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    I don’t do charters and have no interest in doing so. Although I get asked to often. However, I do donate a trip each year to a charity and take a group of wounded vets on a fishing trip. Reading this article made me go back to verify I’m not in violation of anything when I do this trip. I confirmed that as long as I get no direct or indirect compensation I’m good. I figured I would post this as I know others do some of these donated trips too and might be wondering.
  9. Norseman

    Norseman Senior Member

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    Yeah, I am aware of the Bare Boat angle and how it is being abused.
    I would be surprised if the CG doesn't re-write or update it.

    Nothing wrong in offering free trips for charity donations.
    (Curious if you can deduct it on taxes however? You got a friendly CPA?:cool:)

    My wife is an artist and donates a painting or two every year.
    I never thought of donating boat rides, but maybe I should.
    Great idea, thx.
  10. DOCKMASTER

    DOCKMASTER Senior Member

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    Yes, I can deduct the actual costs (fuel, bait, food, drinks, etc) on my taxes. But you can only deduct actual costs. You can’t use the value of a similar trip (charter) if one were to buy it or take any deduction for your personal time.
  11. Norseman

    Norseman Senior Member

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    Actual cost should be plenty: Previous boat cost me $50k to own 5 years and run 600 hours. That is $83 per hour not counting dockage.
    Food, drinks, as etc will be extra of course.
    Getting a new boat in 4 weeks, got an insurance quote for strictly recreational operations with $500k Liability.
    Charity trips should be included, but I will read the small print.
    (The passengers may need special care)
  12. Pascal

    Pascal Senior Member

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    USCG can update the rules, they are set by the passenger vessel act passed 30 or 40 years ago. Will take an act of congress to change the rules
  13. Capt Ralph

    Capt Ralph Senior Member

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    If it does not offer benefits to the "for profit" members, congress does not look at it.
  14. Norseman

    Norseman Senior Member

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    You mean can't...?
  15. Pascal

    Pascal Senior Member

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    Darn, second time today my spailsheik drops a negative !