FMC SHUTS DOWN STALLION CARGO, ISSUES $1.34 MILLION PENALTY

FMC SHUTS DOWN STALLION CARGO, ISSUES $1.34 MILLION PENALTY    The U.S. Federal Maritime Commission has ordered the closure of a Miami-based non-vessel-operating common carrier and assessed a $1.34 million penalty against its owner for violating the 1984 Shipping Act.
   Stallion Cargo Inc., which is owned by Rafael Croes, operated from Port Everglades, Fla., to the port of Oranjestad, Aruba, Netherlands Antilles.
   The FMC launched an investigation into the NVO’s activities on Oct. 5, 1999. The agency found that the NVO had “willfully and knowingly” misdescribed cargo on 15 occasions and failed to charge its applicable tariff rates on 152 occasions.
   The agency’s Chief Administrative Law Judge Norman D. Kline on March 15 determined that a civil penalty of $50,000 should be assessed and a “cease and desist order” should be issued.
   Croes and his attorneys argued that a $50,000 penalty would “destroy” his business and because of its cooperation with the FMC and small business status under Florida law, it should pay a $5,000 penalty.
   However, the FMC has decided to impose a penalty of $1.34 million against the NVO, in addition to revoking the company’s license. Only Joseph Brennan, one of the agency’s five commissioners, objected to the $1.34 million penalty, opting to stick with the administrative law judge’s assessment of $50,000.
   The NVO could appeal the FMC’s decision to the U.S. Court of Appeals. However, as far as the FMC is concerned, the proceeding is closed.