Skip to main content

Ohio company wins rights to shipwreck’s gold

By WTOP Staff

AMANDA LEE MYERS
Associated Press

CINCINNATI (AP) — A fugitive treasure hunter’s company has lost its bid to stop deep-sea explorers from bringing up gold and other artifacts from a ship that sank off the South Carolina coast in 1857 and has been the subject of legal fights for nearly 30 years.

In a ruling Wednesday, federal Judge Rebecca Beach Smith declared that an Ohio company, Recovery Limited Partnership, has the salvage rights to the ship, the SS Central America.

Smith rejected arguments from another Ohio company, Columbus America Discovery Group, that it had exclusive rights to the shipwreck under a court order and that Recovery Limited was trespassing and should be held in contempt of court.

Smith ruled that when the court order was issued, Columbus America acted as Recovery Limited’s agent, and that relationship means that Recovery Limited has the salvage rights.

Operating under a court-appointed receiver, Recovery Limited has contracted with a Florida company and has been recovering treasure from the shipwreck since April. It has recovered at least 1,000 ounces of gold but the exact details of the operation have been kept secret under a court seal.

Milt Butterworth Jr., recently named president of Columbus America, said the company had hoped for an evidentiary hearing before Smith ruled.

“The decision is disappointing,” he said in a statement. “In the days ahead we’ll be considering options,” which could include an appeal of Smith’s decision.

Ira Kane, the court-appointed receiver of Recovery Limited, was out to sea Thursday as part of the ongoing recovery of the Central America’s treasure and could not be reached for comment.

The ship was in operation for four years during the California gold rush. It sailed into a hurricane in 1857 and sank in one of the worst maritime disasters in American history; 425 people were killed and thousands of pounds of gold sank with it.

Wednesday’s ruling is the latest in a decades-long legal saga involving the ship.

The fight began after Tommy Thompson, a marine engineer from Defiance, Ohio, assembled a team of experts, developed new technology and persuaded dozens of investors to give him $12.7 million to find the Central America, which sat untouched on the bottom of the Atlantic Ocean for more than a century.

Thompson delivered on his promise, finding the shipwreck in 1988 and recovering hundreds of pounds of gold. But the victory was short-lived. Dozens of insurance companies sued to claim the gold, arguing that they had insured it in the 1800s, though they had no proof and had done nothing to help find it.

That fight lasted more than a decade and ultimately went in Thompson’s favor.

The gold was later sold for about $50 million, which Thompson’s supporters say ended up going mostly toward legal costs and repaying loans.

Investors and crewmen who helped find the gold but saw no windfall from the sale filed their own lawsuits against Columbus America, and both cases are pending.

A warrant for Thompson’s arrest was issued in 2012 after he repeatedly failed to show up in court, and he has been wanted since.

The current recovery efforts may be the first time investors see profit from the Central America since they put money toward the venture in the late 1980s and early 1990s, though some have since died.

___

Follow Amanda Lee Myers on Twitter at https://twitter.com/AmandaLeeAP

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote