A judge has handed down sentences in a criminal pollution case against Diana Shipping and two engineers that were far lighter than US prosecutors had sought.

The punishments deal a blow to efforts by the US Justice Department to deliver a stiff penalty in a ‘magic pipe’ prosecution against a high-profile shipowner.

District Judge Mark Davis sentenced Ioannis Prokakis, the chief engineer on Diana’s 73,600-dwt bulker Thetis (built 2004), to two months in a halfway house and one year of probation.

Acting