[Federal Register Volume 66, Number 221 (Thursday, November 15, 2001)]
[Notices]
[Pages 57466-57467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28666]


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FEDERAL MARITIME COMMISSION

[Docket No. 01-11]


Revocation of License No. 012234 AAA Nordstar Line Inc.; Notice 
of Show Cause Proceeding

    Notice is given that the Commission, on November 5, 2001, pursuant 
to sections 11 and 19 of the Shipping Act of 1984, served an Order to 
Show Cause on AAA Nordstar Line, Inc. (``AAA Nordstar''), a Delaware 
corporation incorporated in 1991 which has operated an ocean 
transportation intermediary (``OTI'') pursuant to FMC license No. 
012234 since August 2000. According to a review of records maintained 
by the Commission's Bureau of Consumer Complaints and Licensing 
(``BCCL''), AAA Nordstar maintains principal offices at 1571 Irving 
Street in Rahway, New Jersey. BCCL records identify the principals of 
the firm as Anil V. Rane, its President and Qualifying Individual, and 
Maria E. Fabros, its Vice President and Secretary.
    It has come to the attention of the Commission that Anil Rane and 
Maria Fabros also serve as officers and/or shareholders of Great 
Eastern Shipping, Inc. (``Great Eastern Shipping''), an unlicensed 
entity engaged in the transportation of military household goods 
pursuant to contracts with the U.S. Military Traffic Management Command 
(``MTMC''). It further appears that Great Eastern Shipping was then 
sharing office space with AAA Nordstar in Rahway, NJ and possibly at 
other locations, and that Great Eastern Shipping has held itself out to 
the public as serving as the agent of AAA Nordstar.\1\
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    \1\ At the time of AAA Nordstar's application for an OTI 
license, applicant's qualifying individual was required to submit 
standard information regarding the applicant's current office-
sharing arrangements, the identification of officers, directors and 
owners of corporate applicants, locations of branch offices, and any 
relationships with other corporations or shippers. Applicant's 
qualifying individual, Anil Rane, responded in the negative to 
questions regarding common ownership or operation of other 
companies.
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    On July 26, 2001, judgment was rendered against Anil Rane in the 
United States District Court for the District of New Jersey, pursuant 
to Mr. Rane's plea of guilty to two federal counts alleging mail fraud 
and conspiracy to commit mail fraud. On September 14, 2001, judgment 
was rendered against Maria Fabros in the United States District Court, 
pursuant to Mrs. Fabros' plea of guilty to two counts of mail fraud and 
conspiracy to commit mail fraud. Sentencing documents relating to the 
above judgments assert that, from September 1998 through June 2000, co-
conspirators Anil Rane and Maria Fabros, acting through Great Eastern 
Shipping, were awarded more than 350 single-shipment contracts for 
ocean transportation of cargo through the Department of Defense. It was 
asserted that defendants Anil Rane and Maria Fabros routinely 
overbilled MTMC and also falsified documents to make it appear that 
Great Eastern Shipping was using U.S. flag vessels when the 
transportation was, in fact, performed by foreign-registered vessels, 
contrary to U.S. shipping laws and the applicable MTMC shipping 
contracts. Each defendant was sentenced to jail time and extended court 
supervision upon subsequent release. Pursuant to a separate settlement 
agreement, defendants agreed to make financial restitution to the 
government in the amount of $4,323,673.79.
    The crimes of mail fraud and conspiracy to commit mail fraud in 
connection with Great Eastern Shipping's business of handling and 
transporting military household goods on behalf of the Department of 
Defense, admitted in the pleas of guilty entered by Mr. Anil Rane and 
Mrs. Maria Fabros, constitute acts of moral turpitude reflecting 
directly upon the licensee's continued fitness to conduct business as 
an OTI. This is true inasmuch as the offending officials, and perhaps 
others having ties to Great Eastern Shipping, have served and may 
continue to serve as employees, officers, directors and shareholders of 
the corporate licensee, or as the agents for same through the means or 
device of Great Eastern Shipping. It further appears that, in applying 
for and conducting business under authority of its OTI license, AAA 
Nordstar Inc. and its principals made materially false or misleading 
statements to the Commission, and subsequently failed to correct such 
omissions or otherwise advise the Commission of changes in material 
facts relating to its operations

[[Page 57467]]

and the qualifications of its management.\2\
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    \2\ Such omissions or misstatements of fact include, but are not 
limited to, common management, ownership and space sharing 
arrangements between AAA Nordstar and Great Eastern Shipping; the 
failure to disclose or obtain additional surety with respect to 
operation of branch offices in Florida and California; the failure 
to disclose all current officers and/or directors of AAA Nordstar; 
and the failure to disclose changes in material facts relating to 
the convictions of AAA Nordstar principals Anil Rane and Maria 
Fabros. Under 46 CFR 515.12(d), licensees and applicants must advise 
Commission of changes in material fact, within thirty (30) days of 
occurrence, through the submission of an amended Form FMC-18 Rev.
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    The order directs AAA Nordstar Inc. to show cause, why its OTI 
license, FMC No. 012234, should not be revoked inasmuch as the 
officers, directors or other principals, employees or agents of 
licensee have been found to have violated provisions of the 1984 Act or 
other shipping statutes or regulations related to carrying on the 
business of an ocean transportation intermediary, and that such 
licensee is otherwise not qualified to render intermediary services.
    The full text of the Order may be viewed on the Commission's home 
page at www.fmc.gov, or at the Office of the Secretary, Room 1046, 800 
N. Capitol Street, NW, Washington, DC.
    Any person may file a petition for leave to intervene in accordance 
with 46 CFR 502.72 and the provisions of the Order to Show Cause.

Theodore A. Zook,
Assistant Secretary.
[FR Doc. 01-28666 Filed 11-14-01; 8:45 am]
BILLING CODE 6730-01-P