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Case 1:12-cv-01562-SLR Document 23 Filed 01/10/14 Page 1 of 50 PageID #: 1064

IN THE UNITED STATES DISTRICT COURT


FOR THE DISTRICT OF DELAWARE

UNITED STATES OF AMERICA


Ex rel. MOORE & COMPANY, P.A.
Plaintiff,
vs.

C.A. No. 1:12-cv-01562-SLR

MAJESTIC BLUE FISHERIES, LLC,


PACIFIC BREEZE FISHERIES, LLC,
DONGWON INDUSTRIES COMPANY,
LTD, JAYNE SONGMI KIM, JOYCE
JUNGMI KIM, and JAEWOONG KIM,
Defendants.
PLAINTIFFS FIRST AMENDED COMPLAINT PURSUANT TO
31 U.S.C. 3729-3732, FEDERAL FALSE CLAIMS ACT
The United States of America (United States), by and through qui tam Relator Moore
& Company, P.A., brings this action under 31 U.S.C. 3729-3732 (the False Claims Act) to
recover all damages, penalties and other remedies established by the False Claims Act on behalf
of the United States and itself and, in support thereof, states as follows:
INTRODUCTION
1. This action arises from false and fraudulent statements made by Defendants to the United
States Government for the purpose of obtaining United States vessel documentation and
tuna fishing licenses for two Korean owned and operated purse seiner tuna fishing vessels
(the Vessels).

Defendants set up sham ownership structures using U.S. citizen

strawpeople, and fraudulently certified the Vessels would be controlled by U.S. citizens.
This fraudulent certification allowed Defendants toobtain United States Certificates of
Documentation, which allowed Defendants to obtain fishing licenses under the South

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Pacific Tuna Treaty (SPTT), which were available to U.S. registered vessels, but not
vessels registered in the Republic of Korea.
2. The SPTT establishes procedures to request licenses and establishes a system to allocate
a limited number of licenses to the United States and other treaty nations to fish the
waters of certain Pacific Island Nations (the Island Nations). 1 The SPTT was first
entered into force in 1988. After an initial 5-year agreement, the SPTT was extended in
1993 and again in March 2002, when the Parties agreed to amend and extend the treaty
and to extend the related Economic Assistance Agreement between the United States and
the Island Nations as represented by an international body designated as their
Administrator, the Forum Fisheries Agency (FFA).
3. Under the SPTT and the related Economic Assistance Agreement, the United States pays
approximately 18 Million dollars yearly in economic assistance to the FAA, which then
distributes the assistance funds to the individual Island Nations. In return, the United
States receives fishing licenses for exclusive use of U.S. registered and owned vessels.
This structure promotes the Governments dual goals of promoting the U.S. fisheries
industry and providing economic assistance to the struggling economies of the Island
Nations.
4. The Treaty provides for licenses for up to 40 U.S. purse seiners, with an option for 5
additional licenses reserved for joint venture arrangements, to fish for tuna in the
exclusive economic zones (EEZs) of the Island Nations. The Treaty establishes a vessel
monitoring system (VMS); and a system establishing fishing capacity, revenue sharing,

See International Agreements Concerning Living Marine Resources of Interest to NOAA Fisheries, Office of
International Affairs, pp. 69-70 http://www.nmfs.noaa.gov/ia/intlagree/docs/2012/international_agreements.pdf

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and linkages between the Treaty and the Western and Central Pacific Fisheries
Convention (WCPFC), among others.
5. The parties to the Treaty all agree that it is working efficiently and has benefited all
involved. It is viewed as a model of international and fishery cooperation. Issues that
arise typically are addressed in formal annual consultations between U.S. Government
and Island Nations representatives, or during informal discussions which also have taken
place on an annual basis. The United States Department of State has specific authority to
act for the United States. The parties to the Treaty are Australia, Cook Islands, Federated
States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, New Zealand, Niue, Palau,
Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and the United States.
6. Beginning in 2008, Defendants fraud has exploited the negotiated benefits of this treaty
and diverted Government funds and property. The fraud continues through today with
yearly misrepresentations to the United States Government and yearly renewals of the
Vessels documentation and fishing licenses.
7. This action also arises from Defendants fraudulent concealment and intentional failure to
report oil discharge and dumping at sea in order to conceal, avoid, or decrease the civil
fines Defendants would be subject to under the Act to Prevent Pollution from Ships
(APPS).
8. Defendants violated the False Claims Act by knowingly presenting or causing to be
presented false claims for U.S. vessel registration and for FFA tuna fishing licenses.
9. Defendants also violated the False Claims Act by knowingly concealing and improperly
avoiding fees and fines resulting from their violation of APPS which should have been
paid to the Government.

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10. Plaintiff/Relator, in the name of the United States, brings this action to recover damages
and penalties attributable to Defendants false certifications of compliance with the
Vessel Documentation Act, fraudulent concealment of violations of the Vessel
Documentation Act, fraudulent concealment of violations of APPS, and conspiracy to
commit acts which violate the False Claims Act.
PARTIES
11. Plaintiff/Relator, Moore & Company, P.A. (Relator or Moore & Co.), is a Florida
professional association of attorneys with its principal office located at 355 Alhambra
Circle, Suite 1100, Coral Gables, 33134.
12. Defendant, Majestic Blue Fisheries, LLC (Majestic Blue), is a Delaware limited
liability corporation with its principle place of business at 1026 Cabras Highway, Suite
110, Piti, Guam 96915 and is the sham, record owner of the F/V Majestic Blue.
13. Defendant, Pacific Breeze Fisheries, LLC (Pacific Breeze), is a Delaware limited
liability corporation with its principle place of business at 1026 Cabras Highway, Suite
110, Piti, Guam 96915 and is the sham, record owner of the F/V Pacific Breeze.
14. Defendant, Dongwon Industries Co., Ltd (Dongwon), is a Korean corporation with its
principle place of business at 275 Yanglae-Dong, Seocho-gu, Seoul, Korea and is the
entity that actually controlled both the F/V Majestic Blue and the F/V Pacific Breeze.
15. Defendant, Jaewoong Kim, is an individual citizen of Korea who currently resides in
Korea. He is the father of defendants Joyce and Jayne Kim and is a former executive of
Dongwon, the Korean entity which controlled the F/V Majestic Blue and the F/V Pacific
Breeze. Jaewoong Kim is also the brother of Dongwons chairman, J.C. Kim. [Exhibit 1,
Deposition of K.Y. Hwang, pp. 21:6-25, 22:1-2].

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16. Defendant, Jayne Songmi Kim, is a Korean born, naturalized citizen of the United States
who currently resides in Korea. Jayne Songmi Kim is the sister of defendant, Joyce
Jungmi Kim, and daughter of defendant, Jaewoong Kim. She is the majority shareholder
and President of Majestic Blue, as well as the minority shareholder and Treasurer of
Pacific Breeze.
17. Defendant, Joyce Jungmi Kim, is a Korean born, naturalized citizen of the United States
who resides at 278 East Colorado Boulevard #1609, Pasadena, California 91101. Joyce
Jungmi Kim is the sister of defendant Jayne Songmi Kim and daughter of defendant
Jaewoong Kim. She is the majority shareholder and President of Pacific Breeze, as well
as the minority shareholder and Treasurer of Pacific Majestic Blue.
18. Nonparty, F/V Pacific Breeze f/k/a Eastern Kim, is a 1975, 1,091 ton purse seiner fishing
vessel formerly registered in the Republic of Korea, which received U.S. Documentation
and tuna fishing licenses through Defendants false claims.
19. Nonparty, F/V Majestic Blue f/k/a F/V Costa de Marfil, is a 1972, 1,172 ton purse seiner
fishing vessel formerly registered in the Republic of Korea, which received U.S.
Documentation and tuna fishing licenses through Defendants false claims.
JURISDICTION AND VENUE
20. This Court has jurisdiction pursuant to the False Claims Act. 31 U.S.C.S. 3729 et seq,
which states in part: [a]ny action under section 3730 [(Civil Actions for False Claims)]
may be brought in any judicial district in which the defendant or, in the case of multiple
defendants, any one defendant can be found, resides, transacts business, or in which any
act proscribed by section 3729 occurred. See 31 U.S.C.S. 3729(a).

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21. This Court also has jurisdiction pursuant to 28 U.S.C. 1355 which confers original
jurisdiction exclusive of the courts of the States, on any action or proceeding for the
recovery or enforcement of any fine, penalty, or forfeiture, pecuniary or otherwise,
incurred under any Act of Congress. 28 U.S.C. 1355 (1994). See, e.g., Stinson, Lyons &
Bustamante, P.A, v. United States, 79 F.3d 136, 138 (Fed. Cir. 1996) (suit [under the
False Claims Act] must be brought in district court).
22. This Court also has jurisdiction and venue over this case pursuant to 28 U.S.C.S. 1331
as it arises from the laws of the United States, specifically 31 U.S.C.S. 3729 et seq.
23. The Relator is authorized to bring these claims on behalf of the United States of
American in this action pursuant to 31 U.S.C.S. 3730(b).
24. At all relevant times, one or more of the Defendants could and can be found, residing in,
and/or transacting business itself and/or through its agents in the District of Delaware.
Defendants Majestic Blue and Pacific Breeze are Delaware limited liability corporations.
25. Defendants violation of the False Claims Act occurred in part in Delaware as the
Delaware corporations Majestic Blue, LLC and Pacific Breeze, LLC were the entities that
received the benefit of U.S. vessel registration and fishing licenses which were received
based on Defendants false claims to the United States Government.
BACKGROUND FACTS
Majestic Blue and Pacific Breezes Establishment and Vessel Documentation Process
26. Dongwon is a Korean company engaged in the business of purchasing and processing
tuna and selling tuna products; Dongwon also operates tuna purse seine fishing vessels.
27. Prior to April 2008, Dongwon directly owned the F/V Pacific Breeze and F/V Majestic
Blue as part of its purse seiner tuna fishing fleet. At that time, the Vessels were known as

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the F/V Eastern Kim and the F/V Costa de Marfil, respectively, and were registered in the
Republic of Korea. [Exhibit 2 - Certificate of Vessel Nationality dated April 7, 2006]
28. In or about the spring of 2008, Jaewoong Kim, a former Dongwon executive and brother
of Dongwons chairman, approached his daughters, Jayne and Joyce Kim (collectively,
the Kim Sisters), with an investment opportunity. This opportunity consisted of
the Kim Sisters (both U.S. naturalized citizens) acting as straw owners of Majestic Blue
and Pacific Breeze so as to allow Korean Dongwon to fraudulently register the Vessels in
the United States so they could obtain fishing licenses available only to a certain number
of vessels owned and controlled by United States citizens. [Exhibit 1, Deposition of K.Y.
Hwang, pp. 21:6-25, 22:1-2].
29. As part of a program to promote the United States fisheries industry, the United States
Government pays $18 million annually to the Foreign Fisheries Association (FFA) in
return for a limited number of licenses which allow U.S. registered vessels to fish for
tuna in the exclusive economic zones of certain Pacific Island Nations the (Island
Nations). These areas are some of the most tuna rich waters in the world.
30. The treaty governing the issuance of the licenses is the South Pacific Tuna Treaty
(SPTT). The United States is a signatory to this treaty, but the Republic of South Korea
is not, which means that Dongwon could gain access to these lucrative fishing grounds
only by obtaining U.S. registration for the Vessels.
31. To obtain a license under the SPTT, applications are submitted to the United States
government (the Government), specifically the National Marine Fisheries Service
(NMFS), and the licenses are then issued by the Forum Fisheries Agency (FFA), an

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international body designated by the Island Nations as the SPTTs Administrator. 50


CFR 300, subpart D.
32. A limited number of fishing licenses are allocated to the signatories including the U.S.
Government in return for, among other things, payment of approximately $18 million in
economic assistance to the FAA for distribution among the Pacific Island nations who are
signatories to the South Pacific Tuna Treaty.
33. The major requirement for eligibility to obtain an FFA fishing license is that the vessel
have a United States Coast Guard Certificate of Documentation with a registry
endorsement. See 50 CFR 300.32(h)(7). U.S. Vessel Documentation is only available
to Vessels under the ownership and control of U.S. citizens. See 46 U.S.C.S. 12103.
34. For this reason, the Kim Sisters, born in Guam but citizens of Korea, were instructed,
after becoming U.S. Citizens, to form two United States limited liability companies
(LLCs) to take ownership of the F/V Costa de Marfil and F/V Eastern Kim. [Exhibit 3 Deposition of Joyce Kim, 27:10-15, 58:7-16, 20-25, 59:1-7].
35. Only through this fraudulent ownership structure could Dongwon obtain U.S.
registration, thereby qualifying the Vessels for FFA fishing licenses and ultimately to fish
for tuna in waters governed by the SPTT. Id.
36. On March 25, 2008, Joyce and Jayne Kim formed Majestic Blue Fisheries, LLC and
Pacific Breeze Fisheries, LLC (together, the LLCs) in Delaware. [Exhibit 4 Majestic
Blue and Pacific Breeze Corporate Documents].
37. The only capital investment Joyce and Jayne Kim contributed to the LLCs was an initial
contribution to each LLC of approximately fifty dollars ($50.00) each. [Exhibit 3 Deposition of Joyce Kim, 27:25, 28:1-4].

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38. On April 4, 2008, Jayne Kim, as representative of Majestic Blue, and Jong Koo Lee, as
representative of Dongwon, signed a purchase and sale agreement whereby Majestic Blue
agreed to pay $4,400,000.00 to buy the F/V Costa de Marfil via installments over ten
years. Despite Majestic Blues negligible capital funds, the agreement does not hold
either Joyce or Jayne Kim personally responsible for paying or otherwise securing the
multi-million dollar debt, and no mortgage was taken on the Vessel as would be usual
and appropriate. [Exhibit 5 - Majestic Blue Purchase and Sale Agreement].
39. This is because Dongwon always retained true ownership and control over the Vessels.
No purchase funds were ever paid by the LLCs or the Kim Sisters to Dongwon and
possession of the Vessels was never really transferred from Dongwon to the Kim Sisters.
[Exhibit 3 - Deposition of Joyce Kim, 85:6-16].
40. Upon information and belief, a similar purchase and sale agreement was entered into by
Pacific Breeze to purchase the F/V Eastern Kim (renamed the F/V Pacific Breeze)
from Dongwon.
41. On April 23, 2008, Dongwon executed bills of sale selling the F/V Majestic Blue and
F/V Pacific Breeze, each to their eponymous LLC, for $10.00. [Composite Exhibit 6 Majestic Blue and Pacific Breeze Bill of Sale].
42. Shortly thereafter, these entities took record ownership of the F/V Costa de Marfil (later
renamed the F/V Majestic Blue) and the F/V Eastern Kim (later renamed the F/V
Pacific Breeze) (together, the Vessels), respectively. [Composite Exhibit 7 U.S.
Certificate of Documentation, Majestic Blue and Pacific Breeze].
43. The Kim Sisters are held out as the sole owners and shareholders of both LLCs. Jayne
Kim owning 51% of Majestic Blue and 49% of Pacific Breeze, and Joyce Kim owning

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49% of Majestic Blue and 51% of Pacific Breeze. [Exhibit 4 Majestic Blue and Pacific
Breeze Corporate Documents].
44. However, this purported ownership of the LLCs by the Kim Sisters was a sham
perpetrated by Dongwon and its U.S. national confederates, the Kim Sisters, to defraud
the United States government into issuing FFA fishing licenses reserved for U.S. flagged
vessels to be used instead for the benefit of a Korean company that was barred from
obtaining the licenses in its own right.
45. Joyce Kim testified at her deposition that she has never received any return from either
LLC despite the fact that the Vessels owned by the LLCs should have been providing
hundreds of thousands of dollars in revenue per year through their tuna fishing
operations. [Exhibit 3 - Deposition of Joyce Kim, 32:18-22].
46. The Kim Sisters are also held out as the sole directors and officers of the LLCs. On
paper, Jayne Kim serves as President and Director of Majestic Blue, as well as Treasurer
and Director of Pacific Breeze. Likewise, Joyce Kim is held out as the President and
Director of Pacific Breeze and the Treasurer and Director of Majestic Blue. [Exhibit 3 Deposition of Joyce Kim, 29:13-24].
47. However, in actuality, the Kim Sisters know virtually nothing about the business
operations of the LLCs or even how and why the LLCs were formed. Instead, Joyce Kim
testified at her deposition that she and her sister rely entirely on their father, a former
Dongwon executive and Korean citizen, to handle the business of the LLCs. [Exhibit 3 Deposition of Joyce Kim, 46:16-51:3, 86:20-87:24, 94:16, 103:24-104:16].
48. The nature of the Kim Sisters status as strawpeople and the true purpose of the Vessels
ownership structure - orchestrated and operated by Dongwon - are evidenced by

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Dongwons direct efforts to obtain FFA fishing licenses following the Vessels paper
transfer from Dongwon to the LLCs.
49. Beginning April 29, 2008, a series of emails were sent by William Phil, who claimed to
be Manager: Majestic Blue Fisheries & Pacific Breeze Fisheries to the United States
Coast Guard and to the National Oceanic and Atmospheric Administration (NOAA) with
the purpose of obtaining fishing licenses under the SPTT. Although Joyce Kim was one
of only two owner/directors in charge of both LLCs and William Phil purported to act
on behalf of both LLCs, Ms. Kim testified under oath in 2011 that she did not know who
William Phil was. [Exhibit 3 - Deposition of Joyce Kim, 68:13-14].
50. Relator has since discovered that William Phil is actually a pseudonym for three
Korean nationals who are also employees of Dongwon who operated under the false
name in order to sound more like an American citizen. All three of the Korean nationals
were solely paid by Dongwon during the entire period they operated as manager of the
LLCs under the pseudonym William Phil. [Exhibit 1, Deposition of K.Y. Hwang, pp.
12:19-25, 13:1-9, 24:2-16, 30:5-25, 31:1-25, 32:1-25, 34:3-6, 36:1-4].
51. On May 15, 2008, Jayne Kim, on behalf of Majestic Blue, and Joyce Kim, on behalf of
Pacific Breeze, requested U.S. documentation for the Vessels by submitting Applications
for Initial Issue, Exchange, or Replacement of Certificate of Documentation (Form CG
1258) (Application for Documentation) for the F/V Majestic Blue and F/V Pacific
Breeze, respectively, to the National Vessel Documentation Center (NVDC). [Composite
Exhibit 8- 5/15/2008 Signed Application for Majestic Blue Fisheries; 5/15/2008 Signed
Application for Pacific Breeze Fisheries].

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52. On each of the LLCs Application for Documentation, Jayne and Joyce categorized the
Majestic Blue and Pacific Breeze as a limited liability company not managed by
members and not similar to general partnership. In particular, Jayne and Joyce both
averred on the applications they each submitted:
I (we) certify that any person elected to manage the LLC or who is
authorized to bind the LLC, and any person who holds a position
equivalent to the chief executive officer, by whatever title, and the
chairman of the board of directors in a corporation, and any persons
authorized to act in their absence are citizens of the United States; and
non-citizens do not have authority within a management group, whether
through veto power, combined voting, or otherwise, to exercise control
over the LLC.
[Composite Exhibit 8 - 5/15/2008 Signed Application for Majestic Blue Fisheries;
5/15/2008 Signed Application for Pacific Breeze Fisheries].
53. Based on these misrepresentations made in each of the Vessels Application for
Documentation, the NVDC granted the F/V Majestic Blue and F/V Pacific Breeze
temporary Certificates of Documentation and Official Numbers on May 20, 2008.
[Composite Exhibit 8 - 5/15/2008 Signed Application for Majestic Blue Fisheries;
5/15/2008 Signed Application for Pacific Breeze Fisheries].
54. The very next day, on May 21, 2008, less than one week after Joyce and Jayne Kim
certified that non-citizens do not have authority to exercise control over Majestic Blue or
Pacific Breeze, both LLCs signed Crew Manning Agreements, Ships Maintenance,
Supply, and Insurance Service Agreements, and Tuna Supply Agreements with Dongwon
(together, the Agreements), which collectively authorize Dongwon, a Korean-owned,
controlled and based corporation, to exert total control over the LLCs and the Vessels.
[Composite Exhibit 9 - Crew Manning Agreement, Ships Maintenance, Supply, and
Insurance Service Agreement, and Tuna Supply Agreement].
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55. Despite the comprehensive web of Agreements with Dongwon, Joyce Kim testified that
she did not know whether the LLCs had any contracts with Dongwon, once again
illustrating that her only contribution to the LLCs was her U.S. citizenship and further
demonstrating that Dongwon exerted actual control over the LLCs. [Exhibit 3 - Excerpts
from Joyce Kim, Deposition, 51:12-17].
56. In late May 2008, former Dongwon employee, Jaewoong Kim, approached Captain
Jurgen Unterberg to become the general manager of the two LLCs. Captain Unterberg
accepted the position and served as the LLCs general manager until his death in August
2012. Concurrently, Captain Unterberg operated a marine surveying business, Oceaneer,
Inc. (Oceaneer), in Piti, Guam, and both LLCs have the same primary place of business
as Oceaneer. [Exhibit 10 - Excerpts from Jurgen Unterbergs 5/2/2012 Deposition, 15:625, 16:1]
57. Mr. Unterberg testified at his deposition that despite being the general manager of both
LLCs during the same period William Phil was allegedly the manager of these LLCs,
he did not know who William Phil was, again confirming that Dongwon controlled the
LLCs to the exclusion of the U.S. citizens that purported owned and operated them
according

to

the

LLCs

corporate

documents

and

the

Vessels documentation. [Exhibit 11 - Excerpts from Jurgen Unterbergs 5/11/2011


Deposition, 59:6-9]
58. On June 3, 2008, Raymond Clarke (who worked for an agency of the United States of
America within the Department of Commence known at the National Oceanic and
Atmospheric Administration or NOAA sent an email to William Phil stating that he
had met with J.K. Lee, an officer of Dongwon, who showed him what appeared to be a

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temporary [United States Coast Guard] Documentation document for your vessel(s).
[Exhibit 12 - 6/3/2008 Email from Clarke to Phil]. None of the LLCs Agreements with
Dongwon authorized Dongwon to manage the Vessels USCG documentation or fishing
licenses and this level of control by a non-U.S. citizen proves again the LLCs were
actually controlled by Dongwon rather than U.S. Citizens as certified under penalty of
perjury. Additionally, Captain Unterberg invoiced Dongwon for reimbursement of the
Vessels USCG documentation and licensing fees, including: 1) the Vessels American
Tunaboat Association (ATA) membership application fees; 2) the Vessels United States
Federal Communication Commission licensing fees (the obtaining of this license is
arguably another fraud on the United States); 3) the Vessels NOAA High Seas Fishing
permit application fees; 4) the Vessels USCG Certificate of Financial Responsibility
fees; again showing the Korean owned and controlled ownership of the Vessels and total
control over the LLCs management structure and funding. [Composite Exhibit 13 Majestic Blue and Pacific Breeze Invoices to Dongwon].
59. William Phil responded to Raymond Clarke by sending an email with the Vessels USCG
Certificates of Documentation attached and stating We are going to send you the
application [for the SPTT licenses] and necessary documents tomorrow and we will
submit any additional documents or amendments upon your request. [Exhibit 14 6/3/2008 Email from Phil to Clarke]. Again, Dongwon, through the concocted persona of
William Phil, was exerting a level of control over the operation of the LLCs and the
LLCs only assets that shows the true nature of the sham ownership structure orchestrated
by Defendants.

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60. On July 1, 2008, based on the false statements Defendants made to the United States
Government, including certifying control over the LLCs was by U.S. Citizens only, the
FFA issued Certificates of Registration to both Vessels. [Exhibit 15 - Majestic Blue and
Pacific Breeze FFA Certificates of Registration].
61. A year later, when the Vessels FFA fishing licenses were due to expire, one of the
Dongwon employees who had earlier posed as William Phil, K.Y. Hwang, no longer
bothering to keep up the charade, contacted Paul Krampe of the American Tuna
Association (ATA) directly about renewing the licenses, stating that he was in charge of
care for F/V Majestic Blue & Pacific Breeze and noting he was contacting the ATA
directly because Unterberg was unavailable. [Exhibit 16 - 6/9/2009 Email from Hwang
to Krampe].
62. Dongwon, realizing that contacting the ATA directly was a mistake for future contact
with ATA directed its shill, Captain Unterberg, do their bidding, instructing him to
contact Mr. Krampe and Gordon Yamasaki, of NOAA, on their behalf. In particular,
K.Y. Hwang wrote to Captain Unterberg, We are studying the possibility of our US
flagged fishing vessel operation in Atlantic Ocean. In relation to this study, we need to
check several points as follows. Please check these points with ATA and NMFS and
advise us at your earliest time. [Exhibit 17 - 5/26/2010 Email from Hwang to Capt.
Unterberg (emphasis added)].

Clearly, Dongwon, rather than any U.S. Citizen,

maintained operational control over the LLCs and made all major decisions for Majestic
Blue and Pacific Breeze.

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63. By Dongwons own admission above, the Vessels are part of Dongwons US flagged
fishing vessel operation and were not really owned or controlled by U.S. Citizens
despite Defendants contrary certifications to the U.S. Government. Id.
64. Further, the nature of the inquiries Dongwon ordered Captain Unterberg to make show
that Dongwon, rather than a U.S. Citizen, made essential operational decisions for the
LLCs including even what ocean the Vessels (the LLCs only assets) would fish. For
example, Dongwon asked Captain Unterberg: Please check with ATA & NMFS whether
we need any permission or licenses from US government to operate tuna Purse Seiners in
Atlantic Ocean same as Pacific Also Check whether there is any treaty with costal
countries like Africa countries same as US Multi Treaty in Pacific. Id. The NMFS or
National Marine Fisheries Service (NMFS) is a United States federal agency. A division
of the National Oceanic and Atmospheric Administration (NOAA) and the Department of
Commerce, NMFS is responsible for the stewardship and management of the nation's
living marine resources and their habitat within the United States' Exclusive Economic
Zone, which extends seaward 200 nautical miles from the coastline (about 370
kilometers). Guam and the 85,523 squares miles around it are within the United States
Exclusive Economic Zone. The two Vessels at issue herein are based in Guam.

Dongwons Control Over Majestic Blue and Pacific Breeze


65. The operation of Majestic Blue and Pacific Breeze also show Dongwon exerted ultimate
control over the LLCs and Vessels in violation of U.S. law, and contrary to the
certification made by Defendants.

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66. The Agreements between the LLCs and Dongwon alone ceded vast management
authority over the LLCs workers, vessels, and finances, to Korean owned Dongwon, and
in reality, Dongwon exerted what amounted to total control over the LLCs.

[Composite

Exhibit 9 - Crew Manning Agreement, Ships Maintenance, Supply, and Insurance


Service Agreement, and Tuna Supply Agreement].
a. Dongwons control under the Agreements:
67. Pursuant to the Ships Maintenance, Supply, and Insurance Service Agreements, the
LLCs relinquished to Dongwon all control over the Vessels 1) maintenance and repair,
including dry docking, maintaining classification standards, maintaining seaworthiness;
2) parts supply, including parts for deck, machinery, navigation, electronics, and fishing
gear; 3) bunkering, including compliance with all applicable United States Coast Guard
(USCG) regulations; and 4) insurances, including hull and machinery insurance, cargo
insurance, and protection and indemnity insurance. The Vessels hull and machinery
insurance, cargo insurance, and crew insurance were all placed through Korean-based
insurance companies. [Composite Exhibit 9 - Ships Maintenance, Supply, and Insurance
Service Agreements].
68. Pursuant to the Tuna Supply Agreements, the LLCs committed to selling all fish cargo
caught by the Vessels from the very waters the United States worked so hard to protect
and reserve for the impoverished Pacific Island Nations to Dongwon in Korea at prices
based on Dongwons own analysis of market conditions for the fish cargo. The Tuna
Supply Agreements are governed by Korean law and subject to binding arbitration in the
Republic of Korea. [Composite Exhibit 9 - Tuna Supply Agreement].

{GFM-00547851.DOC-}17

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69. Upon information and belief, the LLCs never made any money because Dongwon,
through the Tuna Supply Agreements, would ensure it paid the LLCs only just enough
for the fish to fund the operation.
70. Pursuant to the Crew Manning Agreements, the LLCs relinquished to Dongwon all
control over recruiting, selecting, screening, training, and supplying crew to the Vessels,
including transporting the crew to the Vessels, distributing payment to the crew, and
insuring the crew. [Composite Exhibit 9 - Crew Manning Agreement].
71. Thus, under the Crew Manning Agreement, all individuals who worked onboard the
Vessels signed their employment contract with Dongwon, not Majestic Blue or Pacific
Breeze, with the exception of the only American crewmembers, the captains. [Composite
Exhibit 9 - Crew Manning Agreement]. The Agreement specifically exclud[es] US
crew, and, accordingly, as the only Americans onboard, the U.S. licensed captains, who
were unwitting participants in the scheme, were the only crew out of approximately 25
who signed employment contracts with the Dongwon front organizations Majestic Blue
or Pacific Breeze, rather than Dongwon.

[Composite Exhibit 9 - Crew Manning

Agreement; Exhibit 18 - Capt. Hill Employment Contract with Majestic Blue].


b. Dongwons actual total Control:
72. Notwithstanding the terms of the Crew Agreement which specifically exclude U.S. crew
from Dongwons purview, in actuality, Dongwon exerted almost total control over the
American captains employment, including hiring, arranging their travel, handling their
salaries and taxes, and incentivizing them to remain employed by the LLCs.
73. Dongwons control over the American captains was so extensive that the captains
considered themselves Dongwon employees as opposed to being employed by Majestic

{GFM-00547851.DOC-}18

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Blue or Pacific Breeze.

In one telling example, Tom Ridenour, captain of the F/V

Majestic Breeze from January through May 2010, wrote in a May 1, 2010 email to
Captain David Hill, I have never broken a contract. I will complete my one year with
Dongwon because of personal honor. If you ask me today if I planned on a second year
[sic] with the company the answer would be not just no. it would be HELL NO!!!
[Exhibit 19 - 5/1/2010 Email from Capt. Ridenour to Capt. Hill (emphasis added)].
74. Dongwon also contacted American captains and directly solicited them to work onboard
the Vessels, which Dongwon referred to as our vessel. For example, John Jeskevicius,
captain of the F/V Majestic Breeze from November 2008 through January 2009, was
hired directly by Dongwon executive K.Y. Hwang. Mr. Hwang sent Captain Jeskevicius
an introductory email stating, in pertinent part, I welcome you to work with Majestic
Blue Fisheries LLC as captain for the F/V Majestic Blue Our company specializes in
purse-seine fishing for tuna. The crew aboard our vessel is multi-national All contact
information listed in Mr. Hwangs signature block was Korean and when Jurgen
Unterberg sent Captain Jeskevicius a fax with instructions for commencing his
employment with Majestic Blue, he CCd a Mr. Yu who had a Korean fax number.
[Exhibit 20 - 10/22/2008 Email from Hwang to Capt. Jeskevicius; Fax from Unterberg to
Jeskevicius (emphasis added)].
75. Likewise, when Captain Jeskevicius threatened to resign as captain of the F/V Majestic
Blue in December 2008, it was Dongwon officials, not anyone from Majestic Blue, who
approached him and asked him to stay; and Captain Jeskevicius submitted a list of
conditions for his remaining on board directly to Dongwon officers, not to any of the
paper owners/directors of Majestic Blue on paper or its general manager. [Composite

{GFM-00547851.DOC-}19

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Exhibit 21 - 12/30/2008 Email from Capt. Jeskevicius to Mrs. Jeskevicius; 12/31/2008


Email from Capt. Jeskevicius to Capt. Unterberg].
76. Dongwon made the travel arrangements for the American captains to join the Vessels and
had the final say in determining the dates on which the captains would join and leave the
Vessels and superseded the opinions of the general manager of the LLCs. Captain
Unterberg acknowledged this fact when he wrote to Captain Hill on April 13, 2010, I
have asked the head office to make your E-ticket to come here to China, but have not
heard for what date they [are] planning to do that. I wanted that you are here on 4-152010! [Exhibit 22 - 4/13/2010 Email from Capt. Unterberg to Capt. Hill (emphasis
added)].
77. Dongwon also controlled the day to day activities of the American captains and the
Vessels.

For example, the form the captains filled out to record Monthly Fire,

Emergency and Boat Drills stated: The following information must be completed and
faxed to DongWon (sic) by the first day of the following month that the drills were
conducted. [Exhibit 23 - 8/28/2008 Monthly Fire, Emergency and Boat Drill form
(emphasis added)]
78. Additionally, after his first month on board the F/V Majestic Blue, on December 14,
2008, Captain Jeskevicius emailed Sam Lee, a United States based ships agent for the
Vessels, inquiring Did you forward the PDFs of my particulars to Mr. K.Y. Hwang?
He recently asked me for my social security number so he could pay the taxes,
presumably on my pay. Hwang is a Dongwon executive, but he and Dongwon were
directly involved in the employment of the American captains even though all American
crew was specifically excluded from the Dongwons Crew Manning Agreements.

{GFM-00547851.DOC-}20

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Around that same time, Captain Jeskevicius himself emailed K.Y. Hwang his social
security number. [Composite Exhibit 24 - 12/12/2008 Email from Capt. Jeskevicius to
Hwang; 12/14/2008 Email from Capt. Jeskevicius to Lee].
79. Further, in Captain Doug Pines handover notes to Captain David Hill regarding the F/V
Majestic Blue, he advised, If you want direct deposit of your pay, send your bank
account number and the banks routing number to Mr. Hwang. billy@dongwon.com.
He will set up direct deposit for you. [Exhibit 25 - 10/10/2009 Email from Capt. Pine to
Capt. Hill]. During Captain Hills second voyage on the F/V Majestic Blue, he emailed
his wife asking her to send all family members social security numbers so that he could
sort out this tax situation with Dong Won. [Exhibit 26 - 6/7/2010 Email from Capt. Hill
to Mrs. Hill].
80. Then, when the F/V Majestic Blue went into dry dock in Spring 2010, Captain Unterberg,
the purported manager of the LLCs, intended to have both the outgoing captain, Tom
Ridenour, and the oncoming captain, David Hill, observe the repair of the Majestic Blue
being conducted at a shipyard in China; however, Dongwon vetoed that plan because it
did not want to pay both captains for being there. Captain Unterberg admitted in an
email to Captain Hill that the decision rested with Dongwon rather than the Unterberg,
the manager of the LLCs. [Exhibit 27- 3/1/2010 Email from Capt. Unterberg to Capt.
Hill].
81. Dongwon, rather than any LLC manager or the Kim Sisters, had ultimate control over the
LLCs including all of the money flowing in and out of the companies. Captain Unterberg
explained to Captain Hill, It does not take only a phone call to transfer money from the
main account to our account in Guam! There are very strict rules in place in Korea and

{GFM-00547851.DOC-}21

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we need to get our money from the fish buyers from there! [Exhibit 22 - 4/13/2010
Email from Capt. Unterberg to Capt. Hill].
82. Following Captain Ridenours observation of the F/V Majestic Blues Spring 2010 dry
docking, Captain Unterberg conveyed to him, Mr. Hwang [(of Dongwon)] arrived and
the company agreed to pay you a nice bonus type of money for which I had asked them!
He has that with him too. [Exhibit 28 5/10/2010 (emphasis added)]. Again, the U.S.
captains were purportedly employed by the LLCs not by Dongwon.
83. In June of 2010, Captain David Hill died when the F/V Majestic Blue sank in the South
Pacific in broad daylight and clear weather.
84. Following Captain Hills death onboard the F/V Majestic Blue, Captain Unterberg again
demonstrated that Majestic Blue relied on Dongwon to pay its captains salaries even
though they were employed by the LLCs not Dongwon. Captain Unterberg wrote to
K.Y. Hwang of Dongwon:
I do not understand why Capt. Daves wife after losing her husband at sea
now has to worry about getting paid. This borders on mental cruelty in
my mind. You informed me a few days ago that the money meanwhile
had been send, but also it should have been on his account, it was not! So
please make sure that it was send as you told me. It should be on his
account.
[Exhibit 29 - 6/23/2010 Email from Capt. Unterberg to Hwang (emphasis added)]
c. The Vessels Captains understood Dongwon was in Control and American
Ownership was sham:
85. Furthermore, the American captains on board the Vessels understood that Dongwon
officials actually controlled the LLCs and the Vessels. In December 2008, Captain
Jeskevicius described a meeting between Captain Unterberg and Dongwon officials as a
managers meeting. [Composite Exhibit 30 - 12/25/2008 Email from Capt. Jeskevicius

{GFM-00547851.DOC-}22

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to Capt. Unterberg; 12/25/2008 Email from Capt. Jeskevicius to The Neal Family;
12/26/2008 Email from Capt. Jeskevicius to Capt. Lup].
86. In a December 29, 2008 email to Captain Jill Friedman, Captain Jeskevicius propounded:
There are some serious questions about this operation that need to be asked like what
is the advantage of this vessel sailing under US flag instead of Korean flag where it was?
From what I can see, the US flag operation is now just a flag of convenience
situation. The captains also theorized, as it turns out correctly, that the Vessels had
been reflagged in order to take advantage of United States regulations and fish in United
States waters. [Composite Exhibit 31 - 12/29/2008 Email from Capt. Jeskevicius to Capt.
Friedman (emphasis added); 12/30/2008 Email from Capt. Jeskevicius to Capt.
Friedman].
87. Similarly, in his October 2009 handover notes for the F/V Majestic Blue, Captain Doug
Pine wrote to Captain David Hill:
This is an American ship, not a Korean ship. No one on board but you
will seem to care, and they dont.
***
[The Fishing Master] has been the Master of this ship for eight years, and
then they re-flagged it US. I dont believe he respects me personally;
and sadly I know he doesnt respect my authority. If this was truly an
American ship the first thing I would have done would have been to run
him off.
***
After having had some miscommunication with the Head Office, I have
decided that it is best for me to do everything through Jurgen [Unterberg].
Bringing the Head Office in on things only serves to confuse the issue.
Let Jurgen deal with those guys. You will hear from time to time from
Mr. Hwang and Mr. Shin [of Dongwon].
***

{GFM-00547851.DOC-}23

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You wont be doing things a normal Captain would be, because the
fishing master does all that stuff.
[Exhibit 25 - 10/10/2009 Email from Capt. Pine to Capt. Hill (emphasis added)].
88. All evidence, including the Kim Sisters lack of investment and involvement in the LLCs,
the American captains mere ornamental role, Dongwons direct involvement in
procuring FAA fishing licenses, and the actual total control exerted by Dongwon over the
Vessels operation and control over the LLCs including even their cash flow prove the
LLCs ownership structure was a sham and that Dongwon always remained the true owner
and operator of the Vessels.
89. This fraud on the United States Government was knowingly perpetrated so Dongwon, a
Korean company, could reap the benefits of the U.S. Treaty, subvert the U.S. investment
and compete with the Pacific Islands nations and the U.S. fisheries, which the United
States sought to protect and promote. The substantial monetary rewards enjoyed by
Dongwon were reaped by exploiting the FFA fishing licenses Defendants obtained only
by falsely certifying to the government of the United States that Vessels owners were not
controlled by Non-United States Citizens or by citizens of the Pacific Islands nations.
90. Defendants violated the False Claims Act by knowingly presenting or causing to be
presented a false or fraudulent claim to the United States Government for approval of
U.S. Vessel registration and SPTT tuna fishing licenses.
91. Defendants violation is ongoing and continues through today. The F/V Majestic Blue
continued to maintain its U.S. registration and FFA fishing licenses until it sank in June
of 2010. The F/V Pacific Breeze continues to fly the U.S. flag and take advantage of the
SPTT fishing licenses to this day. In order to do so, yearly renewals are required in
which Defendants were required to confirm none of the information on their previous
{GFM-00547851.DOC-}24

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applications had changed, in effect, yearly reaffirming the misrepresentation that the
LLCs were not controlled by non-U.S. citizens.

See Exhibit 32, 2013 Report to

Congress: Distant Water Fishing Fleet; See Composite Exhibit 33, U.S.C.G Form for
Renewal and No-Change renewal applications.
Violations of MARPOL on the F/V Majestic Blue
92. Within three weeks of being on board the F/V Majestic Blue, Captain Jeskevicius started
noticing that the crew was engaging in illegal dumping. On December 3, 2008, he wrote
to his wife, I am seeing too much plastic going over the side and I dont need to lose my
license for this job. [Composite Exhibit 34 - 12/3/2008 Email from Capt. Jeskevicius to
Mrs. Jeskevicius].
93. In an email to his wife on December 4, 2008, Captain Jeskevicius expressed concern that
the crew members on the F/V Majestic Blue had no conscience about throwing all the
plastics overboard. [Composite Exhibit 34 - 12/4/2008 Email from Capt. Jeskevicius to
Mrs. Jeskevicius].
94. On December 5, 2008, Captain Jeskevicius reported to Captain Unterberg that none of
the guidelines for the F/V Majestic Blues waste management plan were being followed
and that crew members had been discharging garbage from the vessel without informing
vessel officers so that they could record and report it as required. [Composite Exhibit 34
- 12/5/2008 Email from Capt. Jeskevicius to Capt. Unterberg]. That same day Captain
Jeskevicius sent an email to his wife intimating that he feared losing his captains license
due to the illegal dumping that he discovered the crew partaking in. [Composite Exhibit
34 - 12/5/2008 Email from Capt. Jeskevicius to Mrs. Jeskevicius].

{GFM-00547851.DOC-}25

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95. Captain Jeskevicius reiterated his concerns about the F/V Majestic Blues crews
violations of MARPOL to Captain Unterberg on December 8, 2008, stating in relevant
part:
When I did my turnover, I did look to see that the Garbage Record Book
was being kept up, and on the surface it was. Closer inspection of the
garbage records revealed that no entries were being made at sea. What
further roused by suspicions was that there were no indications of trash
having been sent to a facility in Noro. Lo and behold, I discovered that
they were dumping everything over in plastic bags, completely ignoring
MARPOL ANNEX V.
************
The bottom line is that [the senior South Korean officers on the vessel]
knew exactly what they were doing.
[Composite Exhibit 35 - 12/8/2008 Email from Capt. Jeskevicius to Capt. Unterberg].
Captain Jeskevicius sent an email containing the same information, virtually verbatim, to
Dongwon Representative Sam Lee that same day. [Composite Exhibit 35 - 12/8/2008
Email from Capt. Jeskevicius to Sam Lee].
96. On December 10, 2008, Captain Jeskevicius reported to Captain Unterberg that he
noticed an oily sheen coming from under the F/V Majestic Blue and observed that the
vessels bilge pumps were being operated with a non-functioning oily water separator.
[Composite Exhibit 36 - 12/10/2008 Email from Capt. Jeskevicius to Captain Unterberg].
97. In a December 20, 2008 entry in the Captains Log, Captain Jeskevicius elaborated on the
rampant MARPOL violations he witnessed occurring on the F/V Majestic Blue and his
fruitless efforts stopping them, stating:
It has become quite apparent that the senior personnel on this vessel have
absolutely no regard for the regulations imposed by MARPOL Annex V.
I have communicated this to Majestic Blue Fisheries, LLC and in
collaboration with the F/V PACIFIC BREEZE have revised and
implemented a new WASTE MANAGEMENT PLAN. Feeble attempts
have been made to show that the PLAN is in force; but the amount of
{GFM-00547851.DOC-}26

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waste contained nowhere comes near to that of waste having been


generated. In addition, I have personally witnessed some senior personnel
throwing plastic over the side. [T]rash that has been collected and stored
on deck has been disappearing. The types of trash waste have included
but not been limited to plastics. Neither has any of this waste been
reported or recorded as I have all the GARBAGE RECORD BOOKS in
my possession. This continues to be a problem.
[Composite Exhibit 37 - Captains Log Entry for 12/21/2008].
98. On December 22, 2008, Captain Jeskevicius again notified Captain Unterberg of the F/V
Majestic Blues crew refusal to abide by his waste management plan or MARPOL V. He
wrote to Captain Unterberg, Trash is still going over the side and NOT BEING
REPORTED. For the amount of waste generated these past six weeks there is a paltry
minimal amount being held on board. [Composite Exhibit 38 - 12/22/2008 Email from
Capt. Jeskevicius to Capt. Unterberg].
99. Captain Jeskevicius attempted to resign as captain of the F/V Majestic Blue on December
27, 2008 based on [his] observations of illegal trash dumping. [Composite Exhibit 37 Captains Log entry 12/27/2008].
100.

Captain Jeskevicius again reported illegal dumping occurring on board the F/V

Majestic Blue to Captain Unterberg on December 28, 2008, stating:


In six weeks of fishing it has become painfully obvious that the senior
crew members cannot be trusted to do the right thing with regards to US
and international regulations governing waste disposal. We did a resupply
today I was out there for most of the deliveries and a considerable
amount of packaging went over the side when I was not on deck and, in
fact, has been going over since I first came aboard.
[Composite Exhibit 39 - 12/28/2008 Email from Capt. Jeskevicius to Capt. Unterberg].
101.

The MARPOL violations continued while Captain Doug Pine was in command of

the F/V Majestic Blue in Fall 2009.


102.

On August 30, 2009, Captain Pine recorded in the Captains Log:

{GFM-00547851.DOC-}27

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I observed an oily sheen and what appeared to be soap suds off the
starboard side of this vessel. I called the C/E to the site. He began
squirting Joy soap on the water after speaking to one of his crew in the
hold. I directed him to stop applying the soap as it is illegal to do so. I
asked him what the source of the oil was and if it was from the bilge. He
said no, the source was the brine from the fish wells. I took photos for the
area. Will call Jurgen.
***
Called Jurgen Left voicemail on his cell and office telephones.
***
I have sent an email and pictures to Jurgen and Mr. Hwang.
[Composite Exhibit 37 - 8/30/2009 Captains Log Entry].
103.

Captain Pine documented another pollution incident in the Captains Log on

September 24, 2009, writing Someone tossed a whole mess of plastic over the side.
[Composite Exhibit 37 9/24/2009 Captains Log Entry].
104.

Again, on October 2, 2009, Captain Pine recorded in the Captains Log, I

witnessed a deckhand throwing approx. 0.06 m3 Plastic (Cat 1) garbage overboard. I told
him to not do this again. [Composite Exhibit 37 - 10/2/2009 Captains Log Entry].
105.

In his final entry in the Captains Log, Captain Pine wrote, in pertinent part:
This is my statement regarding my allegations that the Korean officers on
my ship have been, while under my command, in daily violation of
MARPOL 73/78 Annex V in that they routinely dump Category 1 (plastic)
garbage at sea.
***
I know in my heart that the Korean officers on my ship intended to violate
the waste mgt. plan. I know this because on a few occasions they did this
directly in my presence without the slightest hesitation.
***
I have personally witnessed, on many occasions, the entire compliment of
officers and unlicensed seamen of the Majestic Blue violate MARPOL and
IOPP and CFRs by dispensing of plastic waste at sea.

{GFM-00547851.DOC-}28

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[Composite Exhibit 37 - 10/19/2009 Captains Log Entry].


106.

Despite the significant attention drawn to F/V Majestic Blues environmental

violations by Captain Pines incident, Defendants failed to implement meaningful change


to the vessels waste management policies. Thus, when Captain David Hill took over as
captain in May 2010, he observed the crewmembers dumping plastics and oil from the
vessel and trying to hide their actions from him.
107.

On June 2, 2010, Captain Hill wrote to his wife:


Last nite the crew threw fifty gallons or so of hydrolic oil and oily rags
into the sea. They have also been throwing plastic in. Next they lied to
me about it. The Chief Engineer just came to me now and admitted about
the oil, but blamed it on the bosun. The bosun lied to me about it. The
mate lied to me about the plastic, and the FM [Fishing Master] lied about
both.

[Composite Exhibit 40 - 6/2/2010 Email from Capt. Hill to Mrs. Hill (emphasis added].
108.

Captain Hill further admitted to his wife that he and other crew members knew

about the dumping but intentionally did not report it, stating:
So the observer from Palau has agreed not to report our little pollution
incident if no more happens. I have been busy yelling at everyone I can to
make sure it dont. I could be in real trouble already if it gets out that we
spilled oil, I knew about it and did not report it.
[Composite Exhibit 40 - 6/4/2010 Email from Capt. Hill to Mrs. Hill].
109.

Captain Hill informed Captain Unterberg about the crews illegal dumping of oil

and garbage, and Captain Unterberg relayed the information to Dongwon officials,
having no authority himself to address the situation personally.

COUNT I: VIOLATION OF THE FALSE CLAIMS ACT

{GFM-00547851.DOC-}29

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31 U.S.C. 3729(a)(2) (2008) - PRE-FERA 2


AGAINST ALL DEFENDANTS
110.

Plaintiff/Relator incorporates herein Paragraphs 1-109 above as relevant.

111.

Defendants knowingly presented or caused to be presented to the United States

Government a false or fraudulent claim to obtain a Government benefit and/or


Government property and/or the property of a contractor, grantee or other recipient to
which the United States Government provides all or part of the property or money, by
fraudulently requesting or demanding U.S. Vessel Documentation and using the
fraudulently obtained Certificates of Documentation to request or demand a FAA licenses
from the Government, specifically the National Marine Fisheries Services (NMFS).
112.

As part of a Government program to financially benefit U.S. citizens and to

promote the U.S. fisheries industry, the United States pays the FAA approximately $18
million annually and in return receives an allotment of fishing licenses for the exclusive
use by United States documented Vessels.
113.

An FAA license is a Government benefit and/or Government property and/or is

the Property of the FAA which is a contractor, grantee or other recipient to which the
United States Government provides all or part of the property or money requested or
demanded.
114.

Possessing a proper U.S.C.G. Certificate of Documentation is a prerequisite for

legally obtaining an FAA license. 50 C.F.R. 300.32(h)(7)(v). To obtain a U.S.C.G.


Certificate of Documentation for a vessel, a vessel owner must certify its compliance
with the citizenship and other requirements of the Vessel Documentation Act including

On May 20, 2009, the False Claims Act was amended by the Fraud Enforcement & Recovery Act ("FERA"), Pub.
L. No. 111-21, 4, 123 Stat. 1617, 1621 (2009).

{GFM-00547851.DOC-}30

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that non-citizens do not exercise control over the owning entity. 46 U.S.C.S. 12101 et
seq. A United States Certificate of Documentation is Government property and/or is a
Government benefit with actual, real and substantial value.
115.

Defendants made false and fraudulent claims for U.S. Certificates of

Documentation by falsely certifying to the United States Coast Guard in their Initial
Applications for Certificates of Documentation in 2008, that the LLCs were not
controlled by non-citizens, when in fact the LLCs were controlled by the Korean
company Dongwon. 3
116.

Defendants

then

presented

the

fraudulently

procured

Certificates

of

Documentation (a false record) to the Government, specifically the National Marine


Fisheries Services (NMFS), for the purpose having the NMFS request the FFA issue FFA
licenses.
117.

Defendants have successfully perpetrated this fraud every year since 2008,

renewing their U.S. Documentation by recertifying (falsely) each year that the LLCs were
not controlled by non-U.S. Citizens; and by yearly presenting their fraudulently obtained
Certificates of Documentation to the NMFS to obtain a renewal of the FAA licenses
purchased by the Government. 4

Despite Defendants certifications of compliance, in truth the LLCs were never operated in compliance with the
Vessel Documentation Act because they were actually controlled by a Korean company and were owned on paper
only by Korean born U.S. naturalized citizen straw men who purchased the Vessels in a less than arms length
transaction without paying any money for the Vessels. Defendants falsely certified that non-citizens do not have
authority within a management group, whether through veto power, combined voting, or otherwise, to exercise
control over the LLC, despite knowing that Dongwon would actually exercise ultimate control over the LLCs.
Defendants also falsely certified that the Vessels will at all times remain under the command of a U.S. citizen,
even though the LLCs only ever hired inexperienced paper captains from the United States as window dressing, in
fact leaving the Korean fishing masters to exert actual command over the Vessels.
4

On June 14, 2010, the F/V Majestic Blue sank. After this date renewals occurred only for the F/V Pacific Breeze.

{GFM-00547851.DOC-}31

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118.

The Government fisc was and continues to be harmed by Defendants false claims

because the FAA licenses were purchased by the Government for $18 million (yearly) for
the exclusive use of vessels beneficially owned and controlled by U.S. citizens as part of
a program to support the United States global economic and political objectives, as well
as the U.S. fisheries industry, and a portion of these funds and property have been and
continue to be fraudulently diverted by Defendants to foreign (Korean) controlled and
owned Vessels.
WHEREFORE, the Plaintiff/Relator, on behalf of itself and the United States, requests that:
A. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiff/Relator and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Post-judgment interest at the highest legal rates, where applicable.

B. The Plaintiff/Relator be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

{GFM-00547851.DOC-}32

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C. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT II: VIOLATION OF THE FALSE CLAIMS ACT
31 U.S.C. 3729(a)(1)(B) (2009) POST-FERA
AGAINST ALL DEFENDANTS
119.

Plaintiff/Relator incorporates herein Paragraphs 1-109 above as relevant.

120.

Defendants knowingly presented or caused to be presented to the United States

Government a false or fraudulent claim to obtain a Government benefit and/or


Government property and/or the property of a contractor, grantee or other recipient to
which the United States Government provides all or part of the property or money, by
fraudulently requesting or demanding U.S. Vessel Documentation and using the
fraudulently obtained Certificates of Documentation to request or demand a FAA licenses
from the Government, specifically the National Marine Fisheries Services (NMFS).
121.

In the alternative, Defendants made false claims to the FAA, by presenting

fraudulently obtained Certificates of Documentation to claim property or money from the


FAA which was to be spent or used on the Governments behalf and/or to advance a
Government program or interest; and the United States Government provided a portion of
the money or property requested or demanded.
122.

As part of a Government program to financially benefit U.S. citizens and to

promote the U.S. fisheries industry, the United States pays the FAA approximately $18
million annually and in return receives an allotment of fishing licenses for the exclusive
use by United States documented Vessels.
123.

An FAA license is a Government benefit and/or is Government property and/or is

the Property of the FAA which is a contractor, grantee or other recipient provided the

{GFM-00547851.DOC-}33

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money or property to be spent or used on the Governments behalf or to advance a


Government program or interest and the Government has provided a portion of the
money or property requested or demanded.
124.

Possessing a proper U.S.C.G. Certificate of Documentation is a prerequisite for

legally obtaining an FAA license. 50 C.F.R. 300.32(h)(7)(v). To obtain a U.S.C.G.


Certificate of Documentation for a vessel, a vessel owner must certify its compliance
with the citizenship and other requirements of the Vessel Documentation Act including
that non-citizens do not exercise control over the owning entity. 46 U.S.C.S. 12101 et
seq. A United States Certificate of Documentation is Government property and/or is a
Government benefit with actual, real and substantial value.
125.

Defendants made a false and fraudulent claims for a U.S. Certificates of

Documentation by falsely certifying to the United States Coast Guard in their Initial
Applications for Certificates of Documentation in 2008, that the LLCs were not
controlled by non-citizens, when in fact the LLCs were controlled by the Korean
company Dongwon. 5
126.

Defendants

then

presented

the

fraudulently

procured

Certificates

of

Documentation (a false record) to the Government, specifically the National Marine

Despite Defendants certifications of compliance, in truth the LLCs were never operated in compliance with the
Vessel Documentation Act because they were actually controlled by a Korean company and were owned on paper
only by Korean born U.S. naturalized citizen straw men who purchased the Vessels in a less than arms length
transaction without paying any money for the Vessels. Defendants falsely certified that non-citizens do not have
authority within a management group, whether through veto power, combined voting, or otherwise, to exercise
control over the LLC, despite knowing that Dongwon would actually exercise ultimate control over the LLCs.
Defendants also falsely certified that the Vessels will at all times remain under the command of a U.S. citizen,
even though the LLCs only ever hired inexperienced paper captains from the United States as window dressing, in
fact leaving the Korean fishing masters to exert actual command over the Vessels.

{GFM-00547851.DOC-}34

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Fisheries Services (NMFS), for the purpose having the NMFS request the FFA issue FFA
licenses.
127.

In the alternative, Defendants presented the fraudulently procured Certificate of

Documentation (a false record) to the FAA, for the purpose of obtaining FAA licenses
paid for by the Government.
128.

Defendants have successfully perpetrated this fraud every year since 2008,

renewing their U.S. Documentation by recertifying (falsely) each year that the LLCs were
not controlled by non-U.S. Citizens; and by yearly presenting their fraudulently obtained
Certificates of Documentation to the NMFS to obtain a renewal of the FAA license
purchased by the Government. 6
129.

The Government fisc was and continues to be harmed by Defendants false claims

because the FAA licenses were purchased by the Government for $18 million for the
exclusive use of vessels beneficially owned and controlled by U.S. citizens as part of a
program to support the United States global economic and political objectives, as well as
the U.S. fisheries industry, and a portion of these funds and property have been and
continue to be fraudulently diverted by Defendants to foreign (Korean) controlled and
owned Vessels.
WHEREFORE, the Plaintiff/Relator, on behalf of itself and the United States, requests that:
D. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiff/Relator and imposed on the Defendants, jointly and
severally, for:

On June 14, 2010, the F/V Majestic Blue sank. After this date renewals occurred only for the F/V Pacific Breeze.

{GFM-00547851.DOC-}35

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i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Post-judgment interest at the highest legal rates, where applicable.

E. The Plaintiff/Relator be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

F. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT III REVERSE FALSE CLAIM FOR VIOLATION OF VESSEL
DOCUMENTATION ACT 31 U.S.C. 3729(a)(7) PRE-FERA
AGASINT ALL DEFENDANTS
130.

Plaintiffs incorporate herein Paragraphs 1 - 109 as relevant.

131.

Beginning in 2008, and in each subsequent year, Defendants knowingly and

intentionally made or used false records and/or statements to conceal, avoid, or decrease
an obligation to pay or transmit property to the Government.
132.

Defendants presented false initial applications and subsequent renewal

applications to the U.S.C.G. and other government agencies, denying foreign nationals

{GFM-00547851.DOC-}36

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exerted control over the LLCs, despite knowing the LLCs were controlled by Korean
nationals rather than United States citizens.
133.

Defendants used these false statements and/or records to conceal, avoid, or

decrease their obligation to pay civil fines and forfeiture of the Vessels and their
equipment, which obligation resulted from Defendants violation of the Vessel
Documentation Acts citizenship requirements.
134.

The United States government suffered damages because the false statements

prevented the government from collecting civil fines and receiving forfeited vessels and
equipment owed to the Government as a result of Defendants violation of the Vessel
Documentation Act.
WHEREFORE, the Plaintiff/Relator, on behalf of itself and the United States, requests that:
A. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiff and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Post-judgment interest at the highest legal rates, where applicable.

B. The Plaintiff/Relator be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

{GFM-00547851.DOC-}37

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ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

C. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT IV REVERSE FALSE CLAIM FOR VIOLATION OF VESSEL
DOCUMENTATION ACT 31 U.S.C. 3729(a)(1)(G) POST-FERA
AGASINT ALL DEFENDANTS
135.

Plaintiffs incorporate herein Paragraphs 1 - 109 as relevant.

136.

Beginning in 2008, and in each subsequent year, Defendants made, used, or

caused to be made or used, false records or statements material to an obligation to pay or


transmit money or property to the government and/or knowingly concealed and
improperly avoided or decreased an obligation to pay money to the Government.
137.

Defendants presented false initial applications and subsequent renewal

applications to the U.S.C.G. and other government agencies, denying that foreign
nationals exerted control over the LLCs, despite knowing the LLCs were controlled by
Korean nationals rather than United States citizens.
138.

Defendants used these false statements and/or records to conceal, avoid, or

decrease their obligation to pay civil fines and forfeiture of the Vessels and their
equipment, which obligation resulted from Defendants violation of the Vessel
Documentation Acts citizenship requirements.
139.

The United States government suffered damages because the false statements

prevented the government from collecting civil fines and receiving forfeited vessels and

{GFM-00547851.DOC-}38

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equipment owed to the Government as a result of Defendants violation of the Vessel


Documentation Act.
WHEREFORE, the Plaintiff/Relator, on behalf of itself and the United States, requests that:
D. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiff and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Post-judgment interest at the highest legal rates, where applicable.

E. The Plaintiff/Relator be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

F. This Court grant such other and further relief, both at law and in equity, that it deems
fit.

COUNT V CONSPIRACY TO COMMIT COUNT I


VIOLATION OF FSA - PRE-FERA
AGAINST ALL DEFENDANTS

{GFM-00547851.DOC-}39

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140.

Plaintiff/Relator incorporates herein Paragraphs 1 - 109 as relevant.

141.

Defendants knowingly and intentionally conspired to commit a violation of the

False Claims Act by having Jayne Kim and Joyce Kim falsely certify to the Government
that Majestic Blue and Pacific Breeze, respectively, were not controlled by non-United
States citizens, with the intent to fraudulently receive United States Certificates of
Documentation and FAA fishing licenses for Vessels owned by LLCs actually controlled
by South Korean nationals.
WHEREFORE, the Plaintiff/Relator, on behalf of itself and the United States, requests that:
A. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiff/Relator and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Post-judgment interest at the highest legal rates, where applicable.

B. The Plaintiff/Relator be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

{GFM-00547851.DOC-}40

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C. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT VI CONSPIRACY TO COMMIT COUNT II
VIOLATION OF THE FSA POST-FERA
AGAINST ALL DEFENDANTS
142.

Plaintiff/Relator incorporates herein Paragraphs 1 - 109 as relevant.

143.

Defendants knowingly and intentionally conspired to commit a violation of the

False Claims Act by having Jayne Kim and Joyce Kim falsely certify to the Government
that Majestic Blue and Pacific Breeze, respectively, were not controlled by non-United
States citizens, with the intent to fraudulently receive United States Certificates of
Documentation and FAA fishing licenses for Vessels owned by LLCs actually controlled
by South Korean nationals.
144.

In the alternative, Defendants knowingly and intentionally conspired to commit a

violation of the False Claims Act by presenting a fraudulently obtained Certificate of


Documentation to the FAA for the purpose of obtaining FAA fishing licenses available
only to U.S. owned and registered vessels.
WHEREFORE, the Plaintiff/Relator, on behalf of itself and the United States, requests that:
D. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiff/Relator and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

{GFM-00547851.DOC-}41

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iv.

Post-judgment interest at the highest legal rates, where applicable.

E. The Plaintiff/Relator be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

F. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT VII CONSPIRACY TO COMMIT COUNT III
REVERSE FALSE CLAIM PRE-FERA
AGAINST ALL DEFENDANTS
145.

Plaintiffs incorporate herein Paragraphs 1 - 109 as relevant.

146.

Defendants, conspired to use false records and to misrepresent to the United

States Government that Dongwon, a Korean entity, did not exert control over the LLCs in
order to conceal, avoid, or decrease the civil fines and forfeiture the LLCs would be
subject to under the Vessel Documentation Act.
WHEREFORE, the Plaintiff/Relator, on behalf of itself and the United States, request that:
A. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiff and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

{GFM-00547851.DOC-}42

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ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Post-judgment interest at the highest legal rates, where applicable.

B. The Plaintiff/Relator be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

C. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT VIII CONSPIRACY TO COMMIT COUNT IV
REVERSE FALSE CLAIM POST-FERA
AGAINST ALL DEFENDANTS
147.

Plaintiffs incorporate herein Paragraphs 1 - 109 as relevant.

148.

Defendants conspired to make, use or cause to be made or used, false record or

statement material to an obligation to pay to transmit money or property to the


government and/or knowingly concealed and improperly avoided or decreased an
obligation to pay money to the Government by presenting an application to the
Government falsely certifying that non-citizens did not exert control over the LLCs.
WHEREFORE, the Plaintiff/Relator, on behalf of itself and the United States, request that:

{GFM-00547851.DOC-}43

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D. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiff and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Post-judgment interest at the highest legal rates, where applicable.

E. The Plaintiff/Relator be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

F. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT IX REVERSE FALSE CLAIM FOR VIOLATION OF APPS
31 U.S.C. 3729(a)(7) (2008) - PRE-FERA
AGAINST ALL DEFENDANTS
149.

Plaintiff incorporates herein Paragraphs 1 109 as relevant.

150.

Defendants intentionally and knowingly failed to immediately report discharges

of oil and other materials from the F/V Majestic Blue in violation of the Act to Prevent

{GFM-00547851.DOC-}44

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Pollution from Ships (APPS) in order to conceal, avoid, or decrease civil fines owed
to the United States for violation of APPS. 33 U.S.C. 1906.
151.

Each violation of APPS subjects the offender to a civil fine of up to $25,000.00,

with each day of a continuing violation constituting a separate violation. 33 U.S.C.


1908.
152.

Defendants fraudulent concealment and intentional failure to report the oil

discharge in order to avoid civil fines constitutes an unlawful avoidance of an obligation


to pay money owed to the United States in violation of 31 U.S.C. 3729(a)(7) (2008) and
31 U.S.C. 3729(a)(1)(G) (2009).
153.

Defendants unlawful conduct deprived the United States of its legal entitlement

to civil penalties and fines owed to the United States.


WHEREFORE, the Relator, on behalf of itself and the United States, request that:
A. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiffs and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Pre-judgment interest at the highest legal rates, where applicable.

B. The Plaintiffs be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

{GFM-00547851.DOC-}45

Case 1:12-cv-01562-SLR Document 23 Filed 01/10/14 Page 46 of 50 PageID #: 1109

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

C. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT X REVERSE FALSE CLAIM FOR VIOLATION OF APPS
31 U.S.C. 3729(a)(1)(G) POST-FERA
AGAINST ALL DEFENDANTS
154.

Plaintiff incorporates herein Paragraphs 1 109 as relevant.

155.

Defendants intentionally and knowingly concealed or knowingly and improperly

avoided or decreased an obligation to pay or transmit money or property to the


government by filing to immediately report discharges of oil and other materials from the
F/V Majestic Blue in violation of the Act to Prevent Pollution from Ships (APPS).
156.

Each violation of APPS subjects the offender to a civil fine of up to $25,000.00,

with each day of a continuing violation constituting a separate violation. 33 U.S.C.


1908.
157.

Defendants fraudulent concealment and intentional failure to report the oil

discharge in order to avoid civil fines constitutes an unlawful avoidance of an obligation


to pay money owed to the United States in violation of 31 U.S.C. 3729(a)(1)(G) (2009).
158.

Defendants unlawful conduct deprived the United States of its legal entitlement

to civil penalties and fines owed to the United States.


WHEREFORE, the Relator, on behalf of itself and the United States, request that:

{GFM-00547851.DOC-}46

Case 1:12-cv-01562-SLR Document 23 Filed 01/10/14 Page 47 of 50 PageID #: 1110

D. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiffs and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

Pre-judgment interest at the highest legal rates, where applicable.

E. The Plaintiffs be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

F. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT XI CONSPIRACY TO COMMIT CLAIM IX
REVERSE FALSE CLAIM - VIOLATION OF APPS PRE-FERA
AGAINST ALL DEFENDANTS
159.

Plaintiffs incorporate herein Paragraphs 1 - 109 as relevant.

160.

Defendants conspired to not report the illegal discharge of oil and dumping from

the F/V Majestic Blue as required by APPS in order to conceal, avoid, or decrease the
civil fines Majestic Blue would be subject to under APPS as the owner of the vessel.

{GFM-00547851.DOC-}47

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WHEREFORE, the Relator, on behalf of itself and the United States, request that:
A. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiffs and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

pre-judgment at the highest legal rates, where applicable.

B. The Plaintiffs be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

C. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
COUNT XII CONSPIRACY TO COMMIT CLAIM X
REVERSE FALSE CLAIM - VIOLATION OF APPS POST-FERA
AGAINST ALL DEFENDANTS
161.

Plaintiffs incorporate herein Paragraphs 1 - 109 as relevant.

162.

Defendants conspired to conceal or knowingly and improperly avoid or decrease

an obligation to pay or transmit money or property to the Government by conspiring not

{GFM-00547851.DOC-}48

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to report the illegal discharge of oil and dumping from the F/V Majestic Blue as required
by APPS in order to conceal, avoid, or decrease the civil fines Majestic Blue would be
subject to under APPS as the owner of the vessel.
WHEREFORE, the Relator, on behalf of itself and the United States, request that:
D. The Defendants be cited to appear and answer and, upon final trial or hearing,
judgment be awarded to Plaintiffs and imposed on the Defendants, jointly and
severally, for:
i.

All actual, incidental, and/or consequential damages sustained by the United


States;

ii.

Treble damages pursuant to 31 U.S.C. 3729(a);

iii.

Civil penalties pursuant to 31 U.S.C. 3729(a); and

iv.

pre-judgment at the highest legal rates, where applicable.

E. The Plaintiffs be awarded:


i.

Reasonable and necessary attorneys fees, litigation expenses and court costs
though the trial and any appeals of this matter;

ii.

An amount of at least 25%, but no more than 30%, of the proceeds of the
action or settlement for originating and prosecuting this action and collecting
the civil penalties; and

iii.

Post-judgment interest at the highest legal rates, where applicable;

F. This Court grant such other and further relief, both at law and in equity, that it deems
fit.
Dated: January 10, 2014
Respectfully Submitted,

{GFM-00547851.DOC-}49

Case 1:12-cv-01562-SLR Document 23 Filed 01/10/14 Page 50 of 50 PageID #: 1113

GORDON, FOURNARIS &


MAMMARELLA, P.A.
Counsel for Plaintiff
/s/ William M. Kelleher
William M. Kelleher, Esquire (DSB #3961)
1925 Lovering Avenue
Wilmington, DE 19806
(302) 652-2900

MOORE & COMPANY, P.A.


Counsel for Plaintiff/Relator
355 Alhambra Circle, Suite 1100
Coral Gables, FL 33134
Telephone: (786) 221-0600
Facsimile: (786) 221-0601
Michael T. Moore, Esq.
(Fla. Bar No. 207845)
Amber E. Ferry, Esq.
(Fla. Bar No. 0014299)
Blair Brogan, Esq.
(Fla. Bar No. 95029)
Clay M. Naughton, Esq.
(Fla. Bar No. 29302)
Email: mmoore@moore-and-co.net
Email: aferry@moore-and-co.net
Email: bbrogan@moore-and-co.net
Email: cnaughton@moore-and-co.net

{GFM-00547851.DOC-}50

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