Tag Archives: Antitrust Division’s Citizen Complaint Center

Former Denso Corp. Executive Agrees to Plead Guilty to Obstructing Automotive Parts Investigation

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A former executive of Japan-based Denso Corp. has agreed to plead guilty to obstruction of justice charges in connection with the Antitrust Division’s investigation into a conspiracy to fix the prices of heater control panels installed in cars sold in the United States and elsewhere, the Department of Justice announced today.  The executive has also agreed to serve one year and one day in a U.S. prison.

A one-count felony charge was filed today in U.S. District Court for the Eastern District of Michigan in Detroit against Kazuaki Fujitani, a former director of Denso Corp. in Japan.  According to the charge, Fujitani, who was general manager of the Toyota Sales Division at the time of the offense, deleted numerous e-mails and electronic documents in February and March 2010 upon learning that the FBI had executed a search warrant on Denso’s U.S. subsidiary.  The deleted documents contained communications between Denso and one or more of its competitors regarding requests for price quotation made by Toyota for heater control panels for the Toyota Avalon.  The plea agreement is subject to court approval.

“Today’s charge demonstrates the Antitrust Division’s commitment to protecting the integrity of grand jury investigations,” said Brent Snyder, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program.  “The division will vigorously prosecute individuals who destroy evidence in an attempt to conceal their participation in illegal conspiracies.”

In March 2012, Denso pleaded guilty and was sentenced to pay a $78 million criminal fine for its role in conspiracies to fix the prices of heater control panels and electronic control units.

Including Fujitani, 29 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry.  Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of over $2.25 billion in fines.

Fujitani is charged with obstruction of justice, which carries a maximum penalty of 20 years in prison and a criminal fine of $250,000 for individuals.

Today’s charge arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charge was brought by the National Criminal Enforcement Section and the San Francisco Office of the Antitrust Division, with the assistance of the Detroit Field Office of the FBI.  Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit  www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.

Bridgestone Corp. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. Cars

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WASHINGTON — Bridgestone Corp., a Tokyo, Japan-based company, has agreed to plead guilty and to pay a $425  million criminal fine for its role in a conspiracy to fix prices of automotive  anti-vibration rubber parts installed in cars sold in the United States and  elsewhere, the Department of Justice announced today.

According to a  one-count felony charge filed today in U.S. District Court for the Northern  District of Ohio in Toledo, Bridgestone engaged in a conspiracy to allocate  sales of, to rig bids for and to fix, raise and maintain the prices of automotive  anti-vibration rubber parts it sold to Toyota Motor Corp., Nissan Motor Corp.,  Fuji Heavy Industries Ltd., Suzuki Motor Corp., Isuzu Motors Ltd. and certain  of their subsidiaries, affiliates and suppliers, in the United States and  elsewhere.  In addition to the criminal  fine, Bridgestone also has agreed to cooperate with the department’s ongoing  auto parts investigations.  The plea  agreement is subject to court approval.

In October 2011,  Bridgestone pleaded guilty and paid a $28 million fine for price-fixing and  Foreign Corrupt Practices Act violations in the marine hose industry, but did  not disclose at the time of the plea that it had also participated in the  anti-vibration rubber parts conspiracy.  Bridgestone’s  failure to disclose this conspiracy was a factor in determining the $425  million fine.

“The Antitrust Division will take a hard line when repeat offenders  fail to disclose additional anticompetitive behavior,” said Brent Snyder, Deputy  Assistant Attorney General for the Antitrust Division’s criminal enforcement  program.  “Today’s significant fine  reaffirms the division’s commitment to holding companies accountable for  conduct that harms U.S. consumers.”

According to the  charges, Bridgestone and its co-conspirators carried out the conspiracy through  meetings and conversations in which they discussed and agreed upon bids, prices  and allocating sales of certain automotive anti-vibration rubber products.  After exchanging this information with its  co-conspirators, Bridgestone submitted bids and prices in accordance with those  agreements and sold and accepted payments for automotive anti-vibration rubber  parts at collusive and noncompetitive prices.  Bridgestone’s involvement in the conspiracy to  fix prices of anti-vibration rubber parts lasted from at least January 2001  until at least December 2008.

“The Cleveland  Division of the FBI is committed to aggressively investigating price-fixing and  other antitrust violations,” said Special Agent in Charge Stephen D. Anthony.  “The illegal activity in this case threatened  the basic tenet of free competition.  We  are pleased with the acceptance of responsibility along with the significant  penalty which will be paid by Bridgestone for this conspiracy to fix prices.  Together with our partners in the Department  of Justice’s Antitrust Division, we will continue to combat illegal practices  which threaten consumers across the United States.”

Bridgestone manufactures and sells a variety of  automotive parts, including anti-vibration  rubber parts, which are comprised primarily of rubber and metal, and are  installed in suspension systems and engine mounts as well as other parts of an  automobile.  They are installed in  automobiles for the purpose of reducing road and engine vibration.

Including  Bridgestone, 26 companies have pleaded guilty or agreed to plead guilty in the department’s  ongoing investigation into price fixing and bid rigging in the automotive parts  industry.  The companies have agreed to  pay a total of more than $2 billion in criminal fines.  Additionally, 28 individuals have been  charged.

Bridgestone is  charged with price fixing in violation of the Sherman Act, which carries  maximum penalties of a $100 million criminal fine for corporations.  The maximum fine may be increased to twice the  gain derived from the crime or twice the loss suffered by the victims of the  crime, if either of those amounts is greater than the statutory maximum fine.

Today’s  prosecution is the result of an ongoing federal antitrust investigation into  price fixing, bid rigging and other anticompetitive conduct in the automotive  parts industry, which is being conducted by each of the Antitrust Division’s  criminal enforcement sections and the FBI.  Today’s charge was brought by the Antitrust  Division’s Chicago Office and the FBI’s Cleveland Field Office, with the  assistance of the FBI headquarters’ International Corruption Unit and the U.S.  Attorney’s Office for the Northern District of Ohio.  Anyone with information concerning this investigation  should contact the Antitrust Division’s Citizen Complaint Center at  1–888–647–3258, visit www.justice.gov/atr/contact/newcase.html or call the  FBI’s Cleveland Field Office at 216-522-1400.

AISAN INDUSTRY CO. LTD. AGREES TO PLEAD GUILTY TO PRICE FIXING ON AUTOMOBILE PARTS INSTALLED IN U.S. CARS

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WASHINGTON — Aisan Industry Co. Ltd., an Obu, Japan-based company, has agreed to  plead guilty and to pay a criminal fine of $6.86 million for its role in a  price-fixing conspiracy involving electronic  throttle bodies sold in the United States and elsewhere, the Department of  Justice announced today.

According to a one-count felony charge filed  today in U.S. District Court for the Eastern District of Michigan in Detroit, Aisan engaged in a  conspiracy to rig bids for, and to fix, stabilize and maintain the prices of  electronic throttle bodies sold to Nissan Motor Co. Ltd. and certain of its  subsidiaries in the United States and elsewhere.  In addition to the criminal fine, Aisan has also agreed to  cooperate with the department’s ongoing auto parts investigations. The plea agreement is  subject to court approval.
“The Antitrust Division will continue to hold companies accountable for  anticompetitive conduct that impacts the automobile industry in the United  States,” said Brent Snyder, Deputy Assistant Attorney General of the Antitrust  Division’s criminal enforcement program.  “To date, 25 companies have been charged as  part of the Antitrust Division’s ongoing auto parts investigation.”

According to the charges, Aisan and its co-conspirators carried out the price-fixing conspiracy  through meetings and conversations in which they discussed and agreed upon bids  and price quotations for electronic throttle bodies.  Aisan’s  involvement in the conspiracy to fix prices of electronic  throttle bodies lasted from at least as early as October 2003 until at  least February 2010.

Aisan manufactures and sells automotive electronic throttle bodies,  which are part of the air intake system in an engine that controls the amount  of air flowing into an engine’s combustion chamber.  By controlling air flow within an engine, the  electronic throttle body controls engine speed.

Including Aisan, 25 corporations have pleaded guilty or agreed to plead  guilty in the department’s investigation into price fixing and bid rigging in  the auto parts industry.  The companies  have agreed to pay a total of more than $1.8 billion in fines.  Additionally, 28 individuals have been charged.

Aisan is charged with price fixing in violation of the Sherman Act,  which carries a maximum penalty of a $100 million criminal fine for  corporations.  The maximum fine may be  increased to twice the gain derived from the crime or twice the loss suffered  by the victims of the crime, if either of those amounts is greater than the  statutory maximum fine.

Today’s prosecution arose from an ongoing federal antitrust  investigation into price fixing, bid rigging and other anticompetitive conduct  in the automotive parts industry, which is being conducted by each of the  Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charges were brought by the San  Francisco Office of the Antitrust Division with assistance provided by the  National Criminal Enforcement Section of the Antitrust Division, the Detroit  Field Office of the FBI, and the FBI headquarters’ National Criminal Enforcement Section.  Anyone with information concerning  this investigation should contact the Antitrust Division’s Citizen Complaint  Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html  or call the Detroit Field Office of the FBI at  313-965-2323.

Stanley Electric Co. Ltd. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.s. Cars; Company Agrees to Pay $1.44 Million Criminal Fine

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Stanley Electric Co. Ltd., a Tokyo-based company, has agreed to plead guilty and to pay a $1.44 million criminal fine for its participation in a conspiracy to fix prices of lamp ballasts installed in cars sold in the United States and elsewhere, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Stanley Electric engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, automotive high-intensity discharge (HID) lamp ballasts sold to automakers in the United States and elsewhere.  Stanley Electric has also agreed to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.

The department said that Stanley Electric and its co-conspirators sold or supplied the ballasts at noncompetitive prices to automakers in the United States and elsewhere.  Stanley Electric’s involvement in the conspiracy to fix prices of automotive HID lamp ballasts lasted from as early as July 1998 until at least February 2010.

Stanley Electric manufactures and sells automotive HID headlamps, which contain automotive HID lamp ballasts.  An automotive HID lamp ballast is an electrical device that is essential for the operation of an HID headlamp.  It regulates the electrical current used to ignite and control the electrical arc that generates the intensely bright light emitted by an automotive HID headlamp fixture.

The department said the company and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids, price quotations and price adjustments and agreed to allocate among the companies certain sales of HID lamp ballasts sold to automobile and component manufacturers.

Including Stanley, 23 corporations have been charged in the department’s investigation into price fixing and bid rigging in the auto parts industry.  Those companies have agreed to pay a total of over $1.8 billion in fines.  Additionally, 26 individuals have been charged.

Stanley Electric Co. Ltd. is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charges were brought by the National Criminal Enforcement Section, with the assistance of the Detroit, Michigan Field Office of the FBI and the FBI headquarters’ International Corruption Unit.  Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit  www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.