NORTHERN DISTRICT OF ILLINOIS
The SPECIAL JANUARY 1996 Grand Jury charges:
1. The following individuals are hereby indicted and made defendants on the charge stated below:
2. Beginning in or about June 1992 and continuing until approximately June 27, 1995, the exact dates being unknown to the Grand Jury, the defendants and co-conspirators, Ajinomoto Co., Inc., Archer Daniels Midland Company, Kyowa Hakko Kogyo Co. Ltd., Sewon America, Inc., and other corporations and individuals, entered into and engaged in a combination and conspiracy to suppress and eliminate competition by fixing the price and allocating the sales volumes of lysine offered for sale to customers in the United States and other countries (a geographic area referred to hereafter as "worldwide"). The combination and conspiracy, engaged in by the defendants and co-conspirators, is an unreasonable restraint of interstate and foreign trade and commerce in violation of Section 1 of the Sherman Act (15 U.S.C. § 1).
3. The charged combination and conspiracy consisted of a continuing agreement, understanding, and concert of action among the defendants and co-conspirators, the substantial terms of which were:
4. For the purpose of forming and carrying out the charged combination and conspiracy, the defendants and co-conspirators did those things that they combined and conspired to do, including, among other things:
5. During the period covered by this Indictment, defendant MICHAEL D. ANDREAS was the Vice Chairman of the Board of Directors and Executive Vice President of Archer Daniels Midland ("ADM"). ADM is a corporation organized and existing under the laws of Delaware with its principal place of business in Decatur, Illinois. MICHAEL D. ANDREAS supervised all of ADM's operations, including ADM's BioProducts Division which was responsible for the production, sale, and distribution of lysine. During the period covered by this Indictment, ADM produced lysine at its plant located in Decatur, Illinois and sold and distributed lysine to customers worldwide.
6. During the period covered by this Indictment, TERRANCE S. WILSON was an ADM Group Vice President and the President of ADM's Corn Processing Division and reported to MICHAEL D. ANDREAS.
7. During the period covered by this Indictment, MARK E. WHITACRE was an ADM Corporate Vice President and the President of ADM's BioProducts Division and reported to MICHAEL D. ANDREAS.
8. During the period covered by this Indictment, KAZUTOSHI YAMADA was the Managing Director of Ajinomoto Co., Inc. ("Ajinomoto"). Ajinomoto is a corporation organized and existing under the laws of Japan with its principal place of business in Tokyo, Japan. Ajinomoto operates a wholly owned United States subsidiary, Heartland Lysine, Inc., which has headquarters in Chicago, Illinois. Ajinomoto, through Heartland Lysine, sells and distributes lysine in the United States produced at Heartland Lysine's plant located in Eddyville, Iowa. During the period covered by this Indictment, Ajinomoto produced, sold, and distributed lysine to customers worldwide.
9. Various corporations and individuals, not made defendants in this Indictment, participated as co-conspirators in the offense charged herein and performed acts and made statements in furtherance of it.
10. Whenever in this Indictment reference is made to any act, deed, or transaction of any corporation, the allegation means that the corporation engaged in the act, deed, or transaction by or through its officers, directors, employees, agents, or other representatives while they were actively engaged in the management, direction, control, or transaction of its business or affairs.
11. Lysine is an amino acid produced through a fermentation process and used primarily as a protein additive in swine and poultry feed. Lysine is used by swine and poultry farmers to supplement a diet of corn and thereby ensure proper growth of swine and poultry.
12. During the period covered by this Indictment, the defendants and co-conspirators produced virtually all of the lysine produced worldwide. Total worldwide sales of lysine by ADM during the period covered by this Indictment was approximately $454 million, of which approximately $197 million was sales to customers in the United States.
13. During the period covered by this Indictment, the defendants and co-conspirators sold and distributed lysine in a continuous and uninterrupted flow of interstate and foreign commerce to customers located in states and countries other than the states and countries in which the defendants and co-conspirators produced lysine.
14. In particular, during the period covered by this Indictment, ADM manufactured lysine in Decatur, Illinois, and sold and distributed lysine to customers in states other than Illinois and countries other than the United States.
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 and foreign trade and commerce.
JURISDICTION AND VENUE
16. The combination and conspiracy charged in this Indictment was carried out, in part, in the Northern District of Illinois, Eastern Division, within the five years preceding the return of this Indictment.
ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1.
A TRUE BILL