The company was charged with conspiracy, obstruction of justice, destruction of evidence, false statements and violation of environmental laws.

MSC will plead guilty to a criminal information which charges that a specially fitted steel pipe, referred to as the "magic pipe," was used on the MSC Elena to circumvent pollution prevention equipment, allowing the discharge of oil sludge and oil contaminated waste.

Authorities said that after the discovery of the spill, senior company officials in Hong Kong "directed crew members to lie to the Coast Guard," the Justice Department said in a statement.

"Additionally, senior ship engineers ordered that documents be destroyed and concealed."

"This is the largest fine involving deliberate pollution from a single ship in a long series of similar prosecutions that have been brought as part of a vessel pollution initiative," said Sue Ellen Wooldridge, an assistant attorney general.

"Deliberate vessel pollution is a serious and persistent problem which we will prosecute to the full extent of the law."

According to officials, MSC discharged approximately 40 tons or approximately 10,640 gallons (40,000 liters) of sludge during a five-month period in 2004 through a three-piece bypass pipe manufactured on the ship.

An even larger volume of oil-contaminated bilge waste was also discharged with a rubber hose and portable pump.

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