U.S. Marshals Seize Boston Charter Cruise Company's Ship

By Carol Kennedy

Published on January 05, 2006

Cruise line owner Capt. Alan Circeo received a $595,000 loan from Shawmut Bank in 1988. The loan went into default status in 1991 when Circeo was unable to make loan payments. The Small Business Administration (SBA) took the loan over in 1992. LPP Mortgage subsequently bought the loan from SBA in 2000. LPP Mortgage filed a lawsuit against A.C. Cruise Lines in 2002 after the company failed to make payments.

A recent court ruling has now authorized LPP Mortgage to recover $822,306 on the loan and take possession of the Cape Ann. In addition, Circeo will have to pay any loan interest fees, attorneys' fees and other related costs.

A.C. Cruise Lines began operating out of Boston Harbor in 1976 and is the largest boat in Circeo's fleet.

Circeo vows to fight back and says he has every intention of staying in business.

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