October 22, 2019-A U.S. court made an order of forfeiture for a cargo vessel named “Wise Honest” that had shipped coal and machinery for North Korea in violation of U.S. and international sanctions.
The U.S. Justice Department announced the decision yesterday, saying that it effectively ends the ship’s “career as one of North Korea’s largest sanctions-busting vessels.”
A Ship’s Story
In April, foreign maritime authorities intercepted and seized the ship. In May, DOJ Attorneys John Demers and Geoffrey Berman filed a civil forfeiture complaint in a U.S. court against the 17,061-ton, single-hull bulk carrier ship. According to a DOJ statement, it was the first-ever seizure of a ship evading sanctions.
The Korea Songi Shipping Company had used the ship to export North Korean coal and import machinery in violation of U.S. and international sanctions. The shipping company is an affiliate of the Songi Trading Company, which was a subordinate of the DPRK’s Korean People’s Army. The U.S. government listed the trading company on its sanctions list on June 1, 2017.
An Eyesore in Samoa
After its seizure in May, the Wise Honest was docked in port of Pago Pago, American Samoa. While local residents complained about the unsightly vessel in their waters, the local government in American Samoa said it collected $46,000 in port services and fees, according to the Samoa News. The news site reported the 30-year vessel had been towed away October 7 after it had been sold for scrap.
The U.S. Marshals Service auctioned the vessel in August and completed a sale for an undisclosed amount on September 12, according to a Navy Times report.
According to the Samoa News, locals celebrated the ship’s October 7 departure from that port. The news outlet quoted one local as saying, “I’m having a beer on the beach, celebrating — finally it’s been towed away from my beautiful island!”
Sanctions & Agencies Investigating
According to the U.S. DOJ, the shipping company violated the following U.S. sanctions: International Emergency Economic Powers Act (IEEPA) and the North Korea Sanctions and Policy Enhancement Act of 2016 (NKSPEA).
Multiple departments were involved in the investigation of evasion of sanctions, including the FBI, the DOJ’s Money Laundering and Asset Recovery Section and the Office of International Affairs; the U.S. Coast Guard; and the State Department.
Notably, the DOJ statement thanked Fred and Cindy Warmbier, the parents of the late Otto Warmbier (who died in a North Korean jail), for “their willingness voluntarily to withdraw their claim in the action in order to facilitate the forfeiture of the Wise Honest.”
The forfeiture order announced yesterday puts the case to rest. And the ship’s story demonstrates the effectiveness of economic sanctions on a small-scale.
“Today’s judgment of forfeiture finalizes the U.S. government’s seizure of the Wise Honest and officially takes this North Korean vessel out of commission,” Berman said.
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