Norwegian authorities have recently uncovered a significant maritime insurance fraud scheme linked to Russia’s shadow fleet. The operation, involving a company named Ro Marine AS, has raised serious concerns about the integrity of shipping insurance in global trade, leading to charges against four individuals for forgery and operating an illegal insurance business.
Norwegian authorities charge four individuals in a maritime insurance fraud case.
Ro Marine AS issued counterfeit insurance documents to over 250 vessels.
The company was a shell entity with no legitimate operations or employees.
Investigations revealed inconsistencies in the insurance documents and claims.
The case may have broader implications for maritime operations and sanctions compliance.
The Fraudulent Operation
The fraudulent activities of Ro Marine AS came to light following a tip-off from a Ghanaian insurer to Norway’s Financial Supervisory Authority (FSA) regarding suspicious insurance documents. An investigation by Norwegian state broadcaster NRK and the watchdog Danwatch revealed that Ro Marine falsely presented itself as a legitimate maritime insurer, despite lacking any real operational capacity.
Authorities discovered that Ro Marine had issued counterfeit insurance documents to vessels in Russia’s shadow fleet, which is known for operating outside of international regulations. The company claimed to cover more than 250 ships, but it was ultimately revealed to be a shell company with no actual business activities, financial records, or employees aside from its Russian owner and a Bulgarian board member.
Investigation Findings
The investigation into Ro Marine uncovered several alarming inconsistencies:
Lack of Records: The company had no operational records before 2016.
False Legal References: Documents referenced non-existent Norwegian laws.
Invalid Signatures: The signature on the documents belonged to an individual who had never worked at the FSA.
Misleading Address: Ro Marine falsely claimed to have offices at the Norwegian Shipowners’ Association in Oslo.
In a report to authorities, the Norwegian Shipowners’ Association expressed concern over Ro Marine’s misleading claims, stating that it was harmful to their reputation and operations.
Legal Actions and Implications
Following the investigation, the Oslo Police District initiated legal proceedings based on the FSA’s report. Four individuals have been charged with document forgery and operating an insurance brokerage without the necessary license. The investigation is ongoing, with authorities also looking into potential violations of Western sanctions by the Russian owner and the Bulgarian board member.
As the investigation continues, several vessels listed on Ro Marine’s website have been removed, indicating a possible attempt to distance the company from its fraudulent activities. However, reports indicate that new shadow fleet vessels have since been added to their website, raising further concerns about the ongoing operations of this fraudulent entity.
The exposure of this maritime insurance fraud scheme highlights the vulnerabilities within the global shipping insurance market, particularly concerning unverified insurance providers. As investigations unfold, the implications of this case may extend beyond Norway, affecting international maritime operations and compliance with sanctions against Russia. The case serves as a critical reminder of the need for vigilance and verification in maritime insurance practices to safeguard against fraud and illicit activities.
