In a significant turn of events a year after the catastrophic failure of OceanGate's Titan submersible, the United States Attorney's Office for the Southern District of New York has initiated a federal investigation. This probe aims to unravel potential legal complications related to the implosion that occurred during a June 2023 expedition to the Titanic wreck. Tragically, the event resulted in the loss of five lives, including Stockton Rush, the founder and CEO of OceanGate.

The exact subject of the investigation by the US Attorney’s Office remains undisclosed, and official commentary has not been provided. However, reports indicate the involvement of a forensic accountancy expert and the US Postal Inspection Service, suggesting possible financial scrutiny, fraud, or money laundering components.

A Complex Corporate Web

OceanGate, headquartered in Washington state, has received over $28 million from investors, predominantly from close-knit circles comprising family and friends. This financial backing became a focal point last month during the US Coast Guard Marine Board of Investigation.

The company structure of OceanGate reveals a multi-faceted framework involving several entities: three for-profit US companies, one Bahamian corporation, and a nonprofit foundation, all geared towards oceanographic research and education. The intricate flow of finances and liabilities across these entities represents a challenging puzzle for investigators.

Unveiling OceanGate's Business Operations

Documents acquired by industry insiders expose OceanGate Inc.'s central role in developing and maintaining the Titan submersible alongside earlier models like the Cyclops and Antipodes. Intriguingly, the Titan was sold to Cyclops 2 LLC, a subsidiary whose existence wasn’t previously disclosed and which was omitted from official Coast Guard proceedings.

Business records from Alaska identify Cyclops 2 LLC under the management of OceanGate Inc. Key figures in OceanGate Inc., including two board members who were also investors, had financial stakes in this LLC. Noteworthy is the ownership breakdown, where entities tied to Stockton Rush’s family controlled roughly 25% of its stock, whereas Furman Moseley, known for his ties to a Seattle-based paper company, held over 34%.

Despite requests, investors identified from the documents and the US Postal Inspection Service have refrained from commenting. Similarly, OceanGate has opted not to issue any statements regarding the ongoing investigation.

Original Source from Wired.