Hays Gorey, Jr. is a partner in the Washington, D.C. office. He represents clients in antitrust and white collar criminal defense matters, government investigations, corporate compliance, internal investigations, qui tam and whistleblower litigation and a variety of civil litigation.
Hays Gorey, Jr. spent his public career with the U.S. Department of Justice, serving in the Antitrust and Criminal Divisions. During this time, he represented the United States in major criminal and civil cases. On detail to the Department of State, he also represented the United States in a dispute with the United Kingdom under the bi-lateral air services agreement between the two countries. In the mid-1990s, as the Soviet Union was disintegrating, Mr. Gorey served as an adviser on competition policy to competition authorities in Eastern Europe. Mr. Gorey retired from the Department of Justice in 2011. A selection of the cases and investigations handled by Mr. Gorey during his public career are described below:
Led successful investigations into bid-rigging by electrical construction contractors on major electrical construction projects, including projects at nuclear and fossil-fuel electric generating stations, water treatment plants, automobile assembly plants and steel mills. Served as lead prosecutor in three major criminal trials — United States v. Sargent Electric Co., 785 F.2d 1123 (3d Cir. 1986); United States v. Dynalectric Co., 859 F.2d 1559 (11th Cir. 1988), cert. denied, 490 U.S. 1006 (1989); and United States v. MMR Corp., 954 F.2d 1040 (5th Cir. 1992). Tried a number of cases arising out of investigations, including United States v. Keys, Crim. No. 88-418 (E.D. La.) (a case involving false statements and obstruction of justice); United States v. Paxson, Crim. No. 87-000 (D.D.C.) (a case involving perjury and conspiracy allegations).
Headed successful investigation into conspiracies among marine contractors to suppress and eliminate competition for heavy-lift derrick barge services. See United States v. HeereMac, v.o.f. and Jan Meek, 97 CR 869 (N.D.Ill., filed Dec. 22, 1997) (corporate defendant, a Dutch-American joint venture, pleaded guilty and was fined $49 million; individual defendant pleaded guilty and was sentenced to a $250,000 fine).
Led major, successful investigation into conspiracy among twenty-four leading market-makers in Nasdaq stocks, including Goldman, Sachs & Co. and J. P. Morgan Securities, Inc. The central goal of the conspiracy was to maintain spreads between buying and selling prices of Nasdaq stocks. See United States v. Alex. Brown & Sons, Inc. (Nasdaq market-maker antitrust litigation), 96 Civ. 5313 (S.D.N.Y., filed July 17, 1996), decided at 963 F.Supp. 235 (S.D.N.Y. 1997). The case was resolved with a court order requiring the defendants, among other things: (a) not to agree with other market makers to fix, raise, lower or maintain quotes or prices for any Nasdaq security; (b) not to agree with other market makers to fix, increase, decrease or maintain any dealer spread, inside spread or the size of any quote increment for any Nasdaq security; and (c) not to agree with other market makers to adhere to any quoting convention to maintain spreads between buying and selling prices of Nasdaq stocks.
Investment Bank and Hedge Funds
Initiated cases involving a conspiracy among Salomon Bros. Inc. and two hedge funds, Caxton Corporation and Steinhardt Partners, L.P., to limit the supply of two-year Treasury notes. The effect of the conspiracy was to increase the cost to short sellers of borrowing the notes in the “repo,” or “repurchase agreement,” market. To resolve the charges, Salomon Bros. paid $190 million (plus $100 million for a victims’ compensation fund). See United States v. Salomon Bros. Inc., 93 Civ. 3700 (S.D.N.Y., filed May 20, 1993). The hedge fund defendants paid a total of $75 million. See United States v. Steinhardt Management Co., Inc. and Caxton Corp., 94 Civ. 9044 (S.D.N.Y., filed Dec. 16, 1994)
U.S.-U.K. Arbitration Concerning Heathrow Airport User Charges
Served as co-agent (deputy representative) of the United States for the U.S.-U.K. Arbitration Concerning Heathrow Airport User Charges while on detail to Office of the Legal Adviser, U.S. Department of State. The arbitration concerned legitimacy of user charges imposed on U.S. air carriers using London’s Heathrow Airport. The arbitration panel awarded the U.S. government $29 million in damages and directed the British government to take steps to ensure compliance with the bilateral air services agreement between the two countries in the future.
Headed investigation into multiple global conspiracies among international freight forwarders. See http://www.justice.gov/opa/pr/2010/September/10-at-1104.html (“Six International Freight Forwarding Companies Agree to Plead Guilty to Price- Fixing Charges”) (Sept. 30, 2010).
Headed multiple successful investigations into road construction bid-rigging. Prosecuted some 40 criminal cases, including United States v. Portsmouth Paving Corp., 694 F.2d 312 (4th Cir. 1982), against road builders.
Civil merger and non-merger cases
Litigated a variety of civil merger and non-merger cases, including United States v. Studiengesellschaft Kohle, m.b.H., 670 F.2d 1122 (D.C. Cir. 1981) (patent licensing scheme); United States v. Texas State Board of Public Accountancy, 592 F.2d 919 (5th Cir. 1979) (professional rules limiting competition among accountants); United States v. Halliburton Co., No. 73 Civ. 1806 (S.D.N.Y.) (acquisition of competitor that eliminated competition); United States v. Texaco, Inc., No. 73 Civ. 2608 (S.D.N.Y.) (acquisition of independent oil refiner that eliminated competition); United States v. National Gypsum Co., Crim. No. 72-140 (W.D. Pa.) (contempt); United States v. The Gillette Co., Civil No. 68-141 (D. Mass.) (unlawful acquisition).
Non-antitrust criminal cases
While with the Criminal Division, Mr. Gorey tried a variety of organized crime and racketeering cases ranging from multiple prosecutions of United Mine Worker Union officials for theft of union funds used to pay for the murder of a political opponent of the union president, to charging the mayor of a New Jersey town for taking bribes in connection with the permitting of a tank farm at the terminus point of a major Gulf Coast to East Coast pipeline.