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Press Release | Jan. 31, 2025

Owner of illegal passenger vessel sentenced to prison

NEW YORK — The owner of the vessel Stimulus Money, Richard Cruz, was sentenced to 18 months in prison Thursday after pleading guilty for his role in the July 2022 capsizing of the vessel while underway on the Hudson River that resulted in the death of two passengers, a seven-year-old boy and 48-year-old woman. 

Cruz was arrested in March 2024 along with the operator of the vessel, Jaime Pinilla Gomez, and charged with one count of misconduct and neglect of a ship officer resulting in death, which carries a maximum sentence of ten years in prison.

Coast Guard Sector New York and the Coast Guard Investigative Service investigated the incident into suspected illegal passenger operations, finding the vessel did not possess the required Certificate of Inspection and the operator did not have the required Coast Guard-issued merchant mariner credential to operate a passenger vessel. The Coast Guard referred the case to the U.S. Attorney’s Office for the Southern District of New York for further consideration in potential criminal prosecution. 

“My deepest condolences go out to the family and friends of those affected by this preventable accident,” said Capt. Jon Andrechik, the Captain of the Port of New York. “Vessel operator licensing and safety regulations are in place to ensure customers that are trying to enjoy a day on the water can do so safely. Disregarding these regulations can have tragic consequences as we saw in this case. I thank the personnel from Coast Guard Sector New York, Coast Guard Investigative Service, and the U.S. Attorney’s Office for their exceptional teamwork and persistence on this case to bring those responsible to justice.”

The Coast Guard urges the public to be on the lookout for illegal charters to ensure their safety and the safety of others. If a vessel is carrying six or more passengers, with at least one paying for the charter, it must have a valid Coast Guard Certificate of Inspection. Passengers can and should ask the captain of the vessel to verify their license and the inspection status of the boat. 

All passengers should check the boat’s maximum capacity plate, if equipped. There should not be more passengers or weight on the boat than it is equipped for. Overloading can cause the boat to ride lower in the water, reduce the vessel’s stability and greatly increase the risk of capsizing. 

Not only do illegal charter operations potentially constitute a violation of federal law, but owners and operators of vessels may also be subject to civil penalties of $60,000 or more for illegal passenger-for-hire operations. Charters that violate a Coast Guard Captain of the Port Order may also be subject to civil penalties of $117,608 per violation. 

Some potential civil penalties for illegally operating a passenger vessel are: 

  • Up to $9,624 for failure of operators to be enrolled in a chemical- testing program. 
  • Up to $5,996 for failure to provide a Coast Guard Certificate of Inspection for vessels carrying more than six passengers for hire. 
  • Up to $20,468 for failure to produce a valid Certificate of Documentation for vessels over 5 gross tons. 
  • Up to $14,988 for failure to have been issued a valid Stability Letter prior to placing a vessel in service with more than six passengers for hire. 

Mariners suspecting a passenger vessel is operating illegally should immediately contact Coast Guard Sector New York by using VHF-FM channel 16, call (844) NYC-USCG, or contact CGIS TIPS at https://www.p3tips.com/878