The Wild West on Our Waters: Exposing the “Bareboat Lie” of the Illegal Charter Fleet
I view the water through a specific set of lenses, honed over a lifetime of service and passion. I see it through the eyes of a U.S. Coast Guard Aviation Survivalman / Rescue Swimmer (RS#69), knowing intimately how quickly a “fun day” turns into a survival test when the elements turn against you. I also see it as a former USCG-licensed captain and Marina Harbormaster, understanding the rigorous standards required to keep passengers safe and operations legal.
For 34 years, I have called Lake Tahoe home. Even in my downtime, when I’m at the helm of my own 27’ Cal sailboat, I am constantly scanning the horizon.
But lately, when I look out at Lake Tahoe—and waterways across the nation—I see a different, darker reality. We are watching a dangerous gamble play out every single day. We are facing an infestation of illegal charters that threatens the safety of our families and undercuts the viability of legitimate, tax-paying, rule-abiding maritime businesses.
It is time to stop looking the other way. It is time to expose the “Ghost Fleet” and the parasitic schemes they use to operate.
The Data of Danger
Let’s look at the hard numbers we pulled here locally. On Lake Tahoe alone, data and observations from local enforcement indicate that between 100 and 150 illegal boat rentals and charters operate during peak season.
Contrast that with the roughly 30 legitimate, licensed, and insured commercial operators in our area. That means for every one legitimate business following the rules and hiring professionals, there are up to five illegal operators skirting the law.
These aren’t just neighbors helping neighbors with gas money. These are shadow businesses unregulated by the USCG. They are hauling your children and your friends out onto vast, dynamic bodies of water with zero oversight.
The Core Deception: The “Bareboat Lie”
How do they get away with it? They use a loophole known in the industry as a “requirement avoidance scheme,” most commonly the “Bareboat Charter” lie. This is where they skirt federal maritime law, specifically the Passenger Vessel Safety Act.
Here is how the scam works:
Federal law dictates that if an owner provides both a vessel and a crew for passengers, that vessel is carrying “passengers for hire.” If they carry more than six passengers, that vessel must undergo rigorous USCG inspections to earn a Certificate of Inspection (COI)—checking hull integrity, firefighting systems, and lifesaving gear.
To dodge this expense and oversight, illegal operators pretend to do a “bareboat” rental—meaning you are just renting the hull, like a rental car. They then “suggest” or provide a captain from a pre-selected list.
It’s a sham. The owner retains control, fuels the boat, and dictates the terms, but on paper, they claim you are the temporary owner to avoid federal safety standards. If you sign a bareboat contract, but the owner is driving, or you are forced to hire their buddy, you are on an illegal charter.
Ignoring the “Rules of the Road”
The danger isn’t just paperwork; it’s practical application. Legitimate Captains have studied and been tested on the USCG Navigation Rules (the “Rules of the Road”).
Just as with driving a car, there are complex rules governing right-of-way, crossing situations, warning signals, and proper lighting at night. An unlicensed operator often doesn’t know a “crossing situation” from a “overtaking situation,” or what five short blasts of a horn mean (danger).
When you hire an illegal operator uneducated in these rules, they aren’t just endangering you; they are a chaotic variable endangering everyone else on the water.
Visualizing the Red Flags
We must starve these operations of business through education. If you are a visitor booking a trip, imagine a bright red warning light flashing if you see these signs.
FLAG 1: The Credential Dodge. You ask to see the Captain’s USCG Merchant Mariner Credential, and they make an excuse, show you a state boater card instead, or get defensive.
Action: WALK AWAY.
FLAG 2: The “Over 6” Rule. The boat is taking out 7, 8, or 12 people, but there is no USCG Certificate of Inspection (COI) sticker visible on the hull.
Action: DO NOT BOARD. It is uninspected.
FLAG 3: The Marina Bypass. Instead of meeting at a legitimate marina slip, they ask you to meet at a random public dock, wade out from a beach, or get picked up by a dinghy to be ferried to the main boat.
Action: CANCEL. They are hiding from harbormasters.
FLAG 4: No Paperwork/Cash Only. There is no professional contract, no liability waiver, and they demand cash or Venmo under the table.
Action: RUN. You have zero insurance protection.
The Vision: Doing It Right
We need to support the small businesses doing it right—the ones investing in safety, training, and insurance.
When you choose a legal charter, you are buying peace of mind.
Picture the perfect day on Big Blue: You walk down a sturdy dock in a permitted marina to a gleaming vessel. The Captain, wearing a professional uniform, greets you with a handshake and readily shows their USCG credentials. The boat is immaculate, with life jackets clearly stowed and safety gear visible.
As you head out of the Keys, the Captain navigates the channel traffic with practiced ease, knowing the rules of the road instinctively. You aren’t anxiously watching the weather or wondering if the bilge pump works. You are relaxing on the bow with your family, laughing, soaking in the Sierra sun, knowing that a true professional has the helm.
That is the experience our visitors deserve. That is the standard our lakes require. Let’s close the doors on the illegal operators and drive our business to the Captains who have earned the title.
Here is the contact list for our local and regional maritime law enforcement.
Pro Tip: If you suspect an illegal charter operation, the most effective route is to contact the USCG Sector San Francisco Command Center, as they handle the investigations for Northern California and Nevada waterways.
Maritime Law Enforcement Contact List
United States Coast Guard – Station Lake Tahoe
Role: Primary federal maritime law enforcement and Search & Rescue for Lake Tahoe.
Station Phone: (530) 583-4433
Emergency: VHF Channel 16 or 911
US Coast Guard Sector San Francisco (Command Center)
Role: The regional command center handling investigations into illegal charter operations (Northern CA/NV).
Report Illegal Charters: (415) 399-3547
Email (Investigations): SectorSanFranciscoInvestigations@uscg.mil
El Dorado County Sheriff’s Office – Boating Safety Unit
Role: Enforces state boating laws and county ordinances on the lake.
South Lake Tahoe Office: (530) 573-3000
Non-Emergency Dispatch: (530) 626-4911
Website: edcgov.us/Government/Sheriff
South Lake Tahoe Police Department – Marine Unit
Role: Enforces laws within the City of South Lake Tahoe jurisdiction (Keys, Ski Run, Timber Cove).
Non-Emergency Dispatch: (530) 542-6100
Website: cityofslt.us/Police
Note: For immediate life-threatening emergencies on the water, always use VHF Channel 16 or dial 911.
Stay’n Thirsty for the Truth,
Coop
#SemparParatus #SoOthersMayLive
