Page 29 - Insurance Times March 2024

crew members which was given to the London solicitors The sinking of the SALEM was a major marine casualty with
representing the hull underwriters of the SALEM. This most serious consequences. The Republic of Liberia, with the
statement described in considerable detail how the SALEM largest merchant marine ship registries in the world, had a
was deliberately scuttled by removing various large plates keen interest in seeing that its laws are not violated and in
and manholes on deck and permitting water to enter into demonstrating that such criminal activity will be dealt with
the engine room and other spaces. swiftly and severely. Because of the international scope of
the events leading up to the sinking of the ship, it was
The Scotland Yard officers didn’t share the documents with requested that the evidence material to criminal
the Liberian authorities, as they stated that this information prosecution should be freely made available to any country
was of a confidential nature and should not be released to having physical jurisdiction over the perpetrators. Since
anyone not involved in the Liberian investigation into this Liberia now had custody of the Master and Chief Engineer
casualty. of the SALEM, the Liberian authorities requested that the
United Kingdom and other countries to share the evidence,
At the conclusion of the interrogation of Captain Georgoulis, to assist in the proceedings against those men and all others
he was formally served with charges of violation of Section involved.
32 of the Liberian Maritime Law, as he intentionally acted
as the Master of a Liberian vessel without being properly The above facts led to a number of court cases, both in
licensed; intently failed to ensure that the vessel had prosecution of the master and principal officers as well as
unlicensed mates and engineers. It was also recommended the main conspirators, many of whom served time in prison
that further charges be made against Captain Georgoulis as a result. After the first trial, held at a criminal court in
for the wilful and deliberate sinking of the SALEM and that Piraeus in 1985, five of the ship's officers and the ship's agent,
these charges be similarly transmitted to the Ministry of all Greek nationals, were sent to jail with terms ranging
Justice for prosecution. between three and 12 years.

At the conclusion of the questioning of Chief Engineer In 1986, during a Greek Appellate court retrial of Captain
Antonios Kalomiropoulos he was formally served with a Dimitris Georgoulis, had his sentence cut from 12 to seven
charge for violation of Section 32 of the Liberian Maritime years, told the court that the whole crew helped sink the
Law in that he knowingly failed to ensure that the vessel ship. 'The tanker was 350 meters long and 20 meters high.
had no properly licensed engineers. It was also I could not do it by myself. We had to fill all the tanks with
recommended that these charges be forwarded to the water and to open all the portholes,' Georgoulis told the
Ministry of Justice for prosecution. It is further court.
recommended that Chief Engineer Kalomiropoulos be also
charged with participation in the wilful and deliberate For this work, the crew was paid $1.5 million, Nickolaos
sinking of the SALEM and that these charges be similarly Mytakis, the ship's agent in Pireaus said. Georgoulis said that
transmitted to the Ministry of Justice for prosecution. Mytakis, who was one of the protagonists of the fraud,
received $6.5 million for the deal. 'We got small amounts in
Dakar and the rest in Athens,' he said of the crew. Mytakis,
who had his sentence reduced from 11 to eight years, said
he only received $385,000 for his role in the swindle.

The court also sentenced engineer Antonis Kalomiropoulos
to three years and three months in jail, engineer Georgios
Theodossiou to two years and six months, and Third Engineer
Ioannis Mavros and the wireless operator Vassilios
Evangelidis to two years and two months.

Frederick Soudan was arrested back in the US, in May 1984
and tried. He was convicted of various crimes and sentenced
to 35 years in federal prison. He was freed a few years ago

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