Cayman authorities are considering prosecuting Paul Allen after his superyacht Tatoosh was linked to extensive coral reef damage in the Caribbean

Microsoft co-founder Paul Allen could find himself in hot water with the Cayman Islands authorities, who are currently investigating damage done to a 14,000ft2 stretch of coral reef.

Mr Allen?s 303ft superyacht Tatoosh (pictured above) was anchored close to the Doc Poulson wreck and The Knife dive site when the coral reef damage occurred.

Officials from the local Department of Environment told the Cayman News Service that more than 80% of the coral in the area had been damaged by the superyacht?s anchor chain.

A spokesperson told the local news provider: ?In addition to assessing the damage and determining the cause of this incident, we are also paying close attention to lessons learned so that we can more effectively prevent these accidents while still hosting visiting yachts.?

However, a statement from Mr Allen?s communications team suggests that he is not taking responsibility and argues that his crew were simply following orders from the local port authority when choosing this anchorage.

It would appear that prevailing winds required the superyacht to change position and the crew took evasive action to avoid any further damage.

Although fines can be levied against owners for coral reef damage, the Cayman News Service cites two recent examples of cruise ships causing damage and avoiding prosecution by making a donation to local conservation efforts.

Whether Mr Allen chooses to go down this route remains to be seen, with further evidence from dive teams due to be delivered next week.

The smaller of Paul Allen?s two superyachts, Tatoosh was launched in June 2000 by German yard Nobiskrug and was bought by the technology mogul in 2001 at a reported cost of $100m.