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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA



UNITED STATES OF AMERICA,
                 

                  v.

ACE SCHIFFLI EMBROIDERY CO., INC.,

                        Defendant.


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Criminal No.: 95-00540

Filed: [9/27/95]

15 U.S.C. 1

Judge Newcomer

   
                        INFORMATION
     The United States of America, acting through its attorneys,
charges:
                                I
               DEFENDANT AND CO-CONSPIRATORS
     1.   ACTION EMBROIDERY CORPORATION (ACTION) is hereby made a
defendant on the charge stated below.  ACTION is a corporation
organized and existing under the laws of the State of California,
with its principal place of business in Ontario, California. 
During the period covered by this information, ACTION
manufactured embroidered insignia which it sold to the Army Air
Force Exchange Service (AAFES) for resale to United States
military personnel.
     2.   Various individuals and companies, not made defendants
herein, participated as co-conspirators in the offense charged
herein and performed acts and made statements in furtherance
thereof.
     3.   Wherever in this information reference is made to any
act, deed or transaction of a corporation, the allegation means


                                                   Page 2

that the corporation engaged in the act, deed or transaction by or through its officers, directors, agents, employees or representatives while they were actively engaged in the management, direction, control or transaction of its business or affairs. II BACKGROUND 4. AAFES operates over 3,000 retail facilities and clothing stores on military installations worldwide at which embroidered military insignia are offered for sale to military personnel. Military insignia are accessories attached to a soldier's uniform to designate branch of service, unit, rank, and also identify the wearer's years of service, campaigns served, training completed and meritorious and heroic conduct performed. Embroidered insignia are manufactured and sold to AAFES by the defendant and co-conspirator companies. 5. AAFES procures embroidered insignia through competitively bid individual bulk contracts with awards made to the qualified bidder offering the lowest price. During the period covered by this information, ACTION and its co-conspirator companies supplied AAFES with embroidered insignia under competitively bid individual bulk contracts. III OFFENSE CHARGED 6. Beginning at least as early as January 1990 and continuing at least until December 1993, the exact dates being


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unknown to the United States, the defendant and co-conspirators entered into and participated in a combination and conspiracy to suppress and eliminate competition in unreasonable restraint of interstate and foreign trade and commerce. 7. The charged conspiracy consisted of a continuing agreement, understanding and concert of action among the defendant and co-conspirators, the substantial terms of which were to submit collusive, noncompetitive and rigged bids for certain bulk embroidered insignia contracts with AAFES. 8. For the purpose of forming and carrying out the charged conspiracy, the defendant and co-conspirators did those things which they combined and conspired to do, including, among other things: (a) discussing among themselves the submission of prospective bids on individual bulk embroidered insignia contracts; (b) agreeing among themselves which company would be the low bidder for the aforementioned contracts; and (c) submitting collusive, noncompetitive and rigged bids for the aforementioned contracts. IV TRADE AND COMMERCE 9. During the period covered by this information, a substantial quantity of the embroidered insignia items manufactured by the defendant and co-conspirators were shipped across state lines and overseas to military facilities throughout the United States and abroad.


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10. During the period covered by this information, the activities of the defendant and co-conspirators, which are the subject of this information, were within the flow of, and substantially affected, interstate and foreign trade and commerce. V. JURISDICTION AND VENUE 11. The combination and conspiracy charged in this information was formed and carried out, in part, within the Eastern District of Pennsylvania, within the five years preceding the filing of this Information. ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1.

Dated:

_______________"/s/"________________
JOEL I. KLEIN
Acting Assistant Attorney General

_______________"/s/"________________
GARY R. SPRATLING
Deputy Assistant Attorney General

_______________"/s/"________________
ROBERT E. CONNOLLY
Attorneys, Antitrust Division
U.S. Department of Justice

_______________"/s/"________________
MICHAEL R. STILES
United States Attorney
Eastern District of Pennsylvania

                

_______________"/s/"________________
WILLARD S. SMITH

_______________"/s/"________________
BRADFORD L. GEYER

Attorneys, Antitrust Division
U.S. Department of Justice
Middle Atlantic Office
The Curtis Center, Suite 650W
7th and Walnut Streets
Philadelphia, Pennsylvania 19106
Tel.: (215) 597-7401