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





       UNITED STATES OF AMERICA ) Crim. No.: 96-40013NMG
       )  
       v. ) Violations:
       ) 15 U.S.C. 1
       AMCEL CORP., ) 18 U.S.C. 2
       DISPOZ-O PLASTICS, INC., )
       LLOYD GORDON, and ) Filed: [6/26/96]
       PETER IACOVELLI, )  
       ) Judge: Brody
       Defendants. )  

                              INDICTMENT

        The Grand Jury charges:
             1.   AMCEL CORP., DISPOZ-O PLASTICS, INC., LLOYD GORDON, and PETER
        IACOVELLI are indicted and made defendants on the charge stated below.
                        DESCRIPTION OF THE OFFENSE
             2.   Beginning at least as early as November 1991 and continuing at least until April,
        1992, the exact dates being unknown to the Grand Jury, the defendants and co-conspirators
        entered into and engaged in a combination and conspiracy to fix prices of certain disposable
        plastic cutlery products sold throughout the United States. The combination and conspiracy
        unreasonably restrained interstate trade and commerce in violation of Title 15, United States
        Code, Section 1, commonly known as the Sherman Antitrust Act.


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             3.   The charged conspiracy consisted of a continuing agreement, understanding, and
        concert of action among the defendants and co-conspirators, the substantial term of which was to
        fix the price of certain disposable plastic cutlery products by establishing and implementing price
        increases for those products.
                     DEFENDANTS AND CO-CONSPIRATORS
             4.   Defendant AMCEL CORP. ("AMCEL") is a corporation organized and existing
        under the laws of the Commonwealth of Massachusetts with its principle place of business in
        Watertown, Massachusetts. During the period covered by this Indictment, defendant AMCEL
        manufactured and sold disposable plastic cutlery throughout the United States.
             5.   During the period covered by this Indictment, defendant LLOYD GORDON
        ("GORDON") was the president and owner of defendant AMCEL.
             6.   Defendant DISPOZ-O PLASTICS, INC. ("DISPOZO") is a corporation organized
        and existing under the laws of the State of South Carolina with its principle place of business in
        Fountain Inn, South Carolina. During the period covered by this Indictment, defendant
        DISPOZO manufactured and sold disposable plastic cutlery throughout the United States.
             7.   During the period covered by this Indictment, defendant PETER IACOVELLI
        ("IACOVELLI") was the president and owner of defendant DISPOZO.


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             8.   Various corporations and individuals, not named as defendants in this Indictment,
        participated as co-conspirators in the offense charged and performed acts and made statements in
        furtherance of it.
                      THE PLASTIC CUTLERY INDUSTRY
             9.   Defendants AMCEL and DISPOZO manufacture, among other things, plastic
        cutlery, including knives, forks, spoons and sporks. Plastic cutlery is manufactured using either
        polypropylene or polystyrene resin purchased from petrochemical companies. Polypropylene
        cutlery is flexible and generally less expensive than polystyrene cutlery, which is rigid and
        considered a more upscale product. In addition, plastic cutlery is sold in different weights (e.g.,
        light-, medium- and heavy-weight). Medium-weight polypropylene cutlery is one of the most
        popular and best selling types of plastic cutlery.
             10.  The defendant corporations sell plastic cutlery nationwide to distributors and
        end-users in the food service industry, however, defendants AMCEL's and DISPOZO's sales are
        strongest in the eastern part of the United States. Each of the defendant corporations sells
        medium-weight polypropylene cutlery. Sales of plastic cutlery may be at list prices or, much
        more frequently, on the basis of some negotiated discount off of list prices.


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                      BACKGROUND OF THE CONSPIRACY
             11.  Since at least 1990 defendants GORDON and IACOVELLI have discussed cutlery
        pricing with various individuals employed by competing cutlery manufacturers. These
        discussions often occurred around the time of industry-wide plastic cutlery price increases.
             12.  Most of the major cutlery manufacturers in the U.S. announced price increases in
        October and November 1990, and again in May 1991. Before both price increases, defendant
        GORDON had contacts with Andrew Liebmann ("Liebmann"), an executive of Polar Plastics
        ("Polar"), during which defendant GORDON asked Liebmann to agree to increase Polar's prices
        on certain cutlery items. In addition, around the time of the May 1991 price increase
        announcement, defendant GORDON called defendant IACOVELLI to discuss pricing of plastic
        cutlery.
                    MEANS AND METHODS OF THE CONSPIRACY
             13.  For the purpose of forming and carrying out the charged conspiracy, the
        defendants and co-conspirators, among other things:
             a.   met at an industry trade show in October 1991 to discuss the need for a price
                increase;
             b.   held a secret meeting at the LaGuardia Airport in New York on November 25,
                1991 to discuss and agree upon price increases for certain plastic cutlery products;


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             c.   reached agreements during the LaGuardia Airport meeting to raise prices of
                certain plastic cutlery products;
             d.   agreed to implement the price-fixing scheme by announcing floor prices for
                certain plastic cutlery products;
             e.   discussed and agreed during the LaGuardia Airport meeting that Polar would be
                the first conspirator to announce the agreed upon floor prices to its customers;
             f.   issued price increase announcements establishing floor prices consistent with the
                price-fixing agreement reached during the LaGuardia Airport meeting;
             g.   contacted each other by telephone or otherwise to implement, monitor and police
                the agreement; and
             h.   attempted to conceal the conspiracy by, among other things, taking steps to leave
                no record of their attendance at the LaGuardia Airport meeting.
                            TRADE AND COMMERCE
             14.  During the period covered by this Indictment, the defendants and co-conspirators
        sold and shipped plastic cutlery in a continuous and uninterrupted flow of interstate commerce to
        customers located in states other than the states in which the defendants and co-conspirators
        produced the plastic cutlery.
             15.  The business activities of the defendants and co-conspirators that are the subject
        of this Indictment were within the flow of, and substantially affected, interstate trade and
        commerce.
                           JURISDICTION AND VENUE
             16.  The combination and conspiracy charged in this Indictment was carried out, in


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        part, within the Eastern District of Pennsylvania within the five years preceding the return of this
        Indictment.
             ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1, AND
        TITLE 18, UNITED STATES CODE, SECTION 2.

        A TRUE BILL

        Dated:


        ____________"/s/"________________
        FOREPERSON



        ____________"/s/"________________ __________"/s/"_____________
        Anne K. Bingaman               J. Brady Dugan
        Assistant Attorney General



        ____________"/s/"________________ ___________"/s/"____________
        Gary R. Spratling                Scott D. Hammond
        Deputy Assistant Attorney General



        ____________"/s/"________________    ___________"/s/"____________
        Anthony Nanni                      Peter J. Levitas

                                       Attorneys, Antitrust Division
                                       U.S. Department of Justice
        ____________"/s/"________________    1401 H Street, N.W.
        David Blotner                       Washington, D.C. 20530
                                       (202) 307-6579
        Attorneys, Antitrust Division
        U.S. Department of Justice




        ____________"s/"________________
        Michael R. Stiles


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        United States Attorney
        Eastern District of Pennsylvania