The Department of Justice today announced the entry of a judgment of forfeiture regarding the M\/V Wise Honest (the \u201cWise Honest\u201d), a 17,061-ton, single-hull bulk carrier ship registered in the Democratic People\u2019s Republic of Korea (\u201cDPRK\u201d or \u201cNorth Korea\u201d). The Wise Honest, one of North Korea\u2019s largest bulk carriers, was used to illicitly ship coal from North Korea and to deliver heavy machinery back to the DPRK. Payments for maintenance, equipment and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks. This conduct violates longstanding U.S. law and United Nations Security Council resolutions.<\/p>\n
\u201cThis order of forfeiture sinks the Wise Honest\u2019s career as one of North Korea\u2019s largest sanctions-busting vessels,\u201d said Assistant Attorney General for National Security John C. Demers. \u201cThe Department of Justice will continue to pursue other property used to violate U.S. and international sanctions, around the globe, with the cooperation of our international partners.\u201d\u200b<\/p>\n
\u200b\u201cToday\u2019s judgment of forfeiture finalizes the U.S. government\u2019s seizure of the Wise Honest and officially takes this North Korean vessel out of commission,\u201d said U.S. Attorney Geoffrey S. Berman for the Southern District of New York. \u201cIt will no longer be used to further a criminal scheme. Using the full set of tools at our disposal, we will continue to investigate and prosecute attempts to evade U.S. sanctions, including by the North Korean regime.\u201d<\/p>\n
\u200bAccording to documents filed in Manhattan federal court:<\/p>\n
\u200bPursuant to the International Emergency Economic Powers Act (IEEPA) and the North Korea Sanctions and Policy Enhancement Act of 2016 (NKSPEA), the DPRK and individuals or entities that the Department of the Treasury, Office of Foreign Assets Control (OFAC) has determined are involved in the facilitation of proliferation of weapons of mass destruction (WMDs) are prohibited from engaging in transactions with U.S. persons, involving U.S.-origin goods, or using the U.S. financial system. The United Nations Security Council has similarly prohibited the provision of goods, technology, and services to North Korea, and the sale, supply, or transfer of coal from North Korea.<\/p>\n
\u200bFrom at least November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation, to export coal from North Korea to foreign purchasers and import machinery to North Korea (the \u201cKorea Songi Scheme\u201d). On June 1, 2017, OFAC designated Songi Trading Company pursuant to Executive 13722 for its involvement in the sale, supply, or transfer of coal from North Korea. OFAC also determined Songi Trading Company was a subordinate of the Korean People\u2019s Army.<\/p>\n
\u200bOn or about March 14, 2018, the Wise Honest was loaded with coal in Nampo, North Korea. On or about April 2, 2018, foreign maritime authorities intercepted and detained the Wise Honest. Maritime regulations require vessels like the Wise Honest engaged in international voyages to operate an automatic identification system (AIS) capable of providing information about the vessel to other ships and coastal authorities. However, despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since Aug. 4, 2017.<\/p>\n
\u200bParticipants in the Korea Songi Scheme attempted to conceal the Wise Honest\u2019s DPRK affiliation by falsely listing different countries for the Wise Honest\u2019s nationality and the origin of the illicit coal in shipping documentation.<\/p>\n
\u200bIn connection with Korea Songi Scheme, Kwon Chol Nam, one of Korea Songi Shipping Company\u2019s Representatives, paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in U.S. dollars through U.S. financial institutions. Such transfers constitute a provision of services, and longstanding U.S. law prohibits banks from providing such services to North Korean parties. Payments totaling more than $750,000 were transmitted through accounts at a U.S. financial institution in connection with the March 2018 shipment of coal on board the Wise Honest.<\/p>\n
\u200bOn May 9, 2019, the United States Attorney\u2019s Office for the Southern District of New York filed a civil forfeiture complaint against the Wise Honest, which had previously been seized pursuant to a warrant issued in the Southern District of New York. Today\u2019s judgment of forfeiture, which was ordered by the Honorable P. Kevin Castel of the Southern District of New York, confirms the U.S. Government\u2019s ownership of the Wise Honest.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Department of Justice today announced the entry of a judgment of forfeiture regarding the M\/V Wise Honest (the \u201cWise Honest\u201d), a 17,061-ton, single-hull bulk carrier ship registered in the Democratic People\u2019s Republic of Korea (\u201cDPRK\u201d or \u201cNorth Korea\u201d). The Wise Honest, one of North Korea\u2019s largest bulk carriers, was used to illicitly ship coal […]<\/p>\n","protected":false},"author":5409,"featured_media":130967,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":[]},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\n