RedactedNarrative: UNIT 1 HAD REPAIRS MADE TO A STUFFING BOX BEFORE DEPARTURE.  THE STUFFING BOX BEGAN LEAKING WHILE UNDERWAY.  THE OPERATOR WAS DISTRACTED TRYING TO STOP WATER FROM COMING IN THE VESSEL AND RAN AGROUND EGG BANK.  UNIT 1 CONTINUED TAKING ON WATER AND CAPSIZED.  USCG RESPONDED AND RESCUED ALL THREE PASSENGERS.