Owner Of Illegal Vessel Jailed For 18 Months Over Boat Accident That Killed 2

Richard Cruz, a 33-year-old resident of Elizabeth, New Jersey, has been sentenced to 18 months in prison for his role in a fatal boating accident on the Hudson River.
The accident caused the death of a seven-year-old boy and a 48-year-old woman. Along with his prison term, Cruz has been ordered to pay $50,000 in restitution for the funeral expenses of the victims.
Cruz owned the motor vessel named “Stimulus Money,” which he had purchased about three months before the accident. He conducted boat tours for paying customers on multiple occasions without possessing the required United States Coast Guard (USCG) credentials and certifications.
On the day of the accident, Cruz operated the vessel with 13 people onboard, exceeding its maximum allowable capacity. He navigated at a high rate of speed despite a Small Craft Advisory warning of hazardous conditions, including high winds, and heavy seas.
Neither Cruz nor the vessel had the necessary USCG certifications to operate with paying customers.
At about 2:40 p.m., the vessel capsized, throwing all 13 passengers into the Hudson River. Emergency responders from the New York City Police Department’s Harbour unit, the New York City Fire Department’s Dive Rescue Team, and nearby ferries arrived quickly.
Eleven passengers were rescued and survived, while the seven-year-old boy and the 48-year-old woman were found unconscious, trapped, beneath the overturned vessel, and later declared dead due to drowning.
Cruz was arrested in March 2024, and charged with misconduct and neglect of a ship officer resulting in death, a charge carrying a maximum sentence of 10 years in prison. He pleaded guilty in October 2024.
On January 31, 2025, U.S. District Judge Katherine Polk Failla sentenced Cruz to 18 months in prison and ordered him to pay $50,000 in restitution for the funeral expenses of the victims.
U.S. Attorney Danielle R. Sassoon discussed the importance of adhering to federal regulations and safety protocols designed to protect passengers, saying that captains and operators of commercial vessels will face consequences when they fail to follow these guidelines.
Rear Admiral John Mauger, Commander of the First Coast Guard District, stated that the case shows the deadly consequences of illegal passenger operations. He affirmed the Coast Guard’s commitment to preventing similar tragedies by investigating and holding violators accountable.
He urged the public to assist in detecting and deterring illegal operations by reporting suspected illegal passenger operations to the Coast Guard.
The U.S. Coast Guard urges the public to be cautious about 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 are encouraged to ask the captain to verify their license and the inspection status of the boat. Overloading a vessel can cause it to ride lower in the water, reduce stability, and greatly increase the risk of capsizing.
Owners and operators of vessels may 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 other civil penalties for illegally operating a passenger vessel are as follows:
- Failure of operators to enrol in a chemical-testing program up to $9,624.
- Failure to provide a Coast Guard Certificate of Inspection for vessels carrying more than six passengers for hire is up to $5,996.
- Failure to provide a valid Certificate of Documentation for vessels over 5 gross tons is up to $20,468.
- Failure to have been issued a valid Stability letter before placing a vessel in service with more than six passengers for hire.
Reference: USCG, US Department of Justice
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