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MCGREGOR W. SCOTT
United States Attorney
BENJAMIN B. WAGNER
SEAN C. FLYNN
Assistant U.S. Attorneys
501 "I" Street, Suite 10-100
Sacramento, California 95814
Telephone: (916) 554-2700

DEBORAH A. GARZA
Acting Assistant Attorney General
BARBARA NELSON
RICHARD COHEN
LARA KROOP
Trial Attorneys
U.S. Department of Justice
Antitrust Division
450 Golden Gate Avenue, Room 10-0101
San Francisco, CA 94102
Telephone: (415) 436-6660

  
ORIGINAL
FILED

DEC 10 2008

CLERK, U.S. DISTRICT COURT
EASTERN DISTRICT OF CALIFORNIA
By _______________________________
DEPUTY CLERK


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



UNITED STATES OF AMERICA,    

                  Plaintiff,

                  v.

RANDALL LEE RAHAL,

                  Defendant.


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No. 2 - 08 - CR - 566

VIOLATIONS: 18 U.S.C. § 1962(d)

— Conspiring to Conduct the
Affairs of an Enterprise
Through a Pattern of
Racketeering Activity; 18
U.S.C. § 1957 - Money
Laundering; 15 U.S.C. § 1
— Price Fixing, and 18 U.S.C. § 2
— Aiding and Abetting



INFORMATION

COUNT ONE: [18 U.S.C. § 1962(d) - Conspiring to Conduct the Affairs of an Enterprise Through a Pattern of Racketeering Activity]

The United States Attorney charges:

RANDALL LEE RAHAL

defendant herein, as follows:

The Enterprise

1. At all times relevant to this Information, SK Foods, L.P. was a limited partnership, with principal places of business in Monterey, Williams, Ripon, and Lemoore, California. SK Foods, L.P. and its related corporate entities ("SK Foods") is a grower and processor of tomato products and other food products for sale to food product manufacturers, food service distributors and marketers, and retail outlets. For purposes of this Information, "processed tomato products" includes, among other things, bulk tomato paste and diced tomatoes.

2. SK Foods, including its leaders, employees and associates, constituted an "enterprise" as defined in Title 18, United States Code, Section 1961(4) (hereinafter "the enterprise"), that is a legal entity that was engaged in, and whose activities affected, interstate and foreign commerce.

3. At all times relevant to this Information, Intramark USA, Inc. ("Intramark"), was a New Jersey-based company holding itself out as a wholesaler of food ingredients, including processed tomato products, and an importer of juice concentrates. In that capacity, Intramark acted on behalf of itself and others in selling processed tomato products to customers.

4. At all times relevant to this Information, Intramark was owned and operated by defendant RANDALL LEE RAHAL ("RAHAL") . Through Intramark, RAHAL worked on behalf of SK Foods as a sales broker. In that capacity, RAHAL oversaw among other things the negotiation and execution of contracts between SK Foods and many of its customer companies. Through Intramark, RAHAL also acted as an advisor and director of SK Foods, giving direction to and receiving periodic reports regarding various aspects of SK Foods' business from SK Foods employees, including certain co-conspirators.

5. At various times relevant to this Information, RAHAL, and others known and unknown were leaders, employees and associates of SK Foods, an enterprise whose leaders, employees and associates engaged in acts of mail fraud, wire fraud and bribery, and which operated principally in the Eastern District of California, the Northern District of California and the District of New Jersey.

Purposes of the Defendants

6. The purposes of the defendant and other leaders, employees and associates of the enterprise included the following:

  1. providing SK Foods and its leaders, employees and associates with an expanding base of corporate customers for processed tomato products and other food products;
  2. preserving and protecting SK Foods' profits and customer base through acts of mail fraud, wire fraud and bribery;
  3. causing the purchasing agents and others employed by SK Foods' customers to act in contravention of the customers' interests, and depriving the customers of their rights to their employees' honest services;
  4. promoting and enhancing the enterprise and its leaders, employees and associates' activities;
  5. enriching the leaders, employees and associates of the enterprise; and
  6. concealing and otherwise protecting the conspiracy and its participants from detection and prosecution.

Means and Methods of the Defendants

7. Among the means and methods by which the defendant and other leaders, employees and associates of the enterprise conducted and participated in the conduct of the affairs of the enterprise were the following:

  1. RAHAL and other leaders, employees and associates of the enterprise engaged in a scheme to defraud and deprive various SK Foods customers of their respective rights to the honest services of certain of their own employees through acts involving bribery, which were intended to: (1) ensure that those customers purchased processed tomato products and other products from SK Foods rather than from its competitors; (2) ensure those customers paid an inflated price for such products; and (3) induce the purchasing agents to disclose bidding and other proprietary information of certain of SK Foods' competitors.
  2. Bribery payments to the purchasing agents of SK Foods' customers were made with the knowledge and at the direction of SK Foods' owners, leaders, employees and associates.
  3. RAHAL, assisted by other leaders, employees and associates of the enterprise, constructed and transmitted to SK Foods' customers fraudulent financial and business information to induce the enterprise's customers to do business with, and release funds to the enterprise.
  4. RAHAL, assisted by other leaders, employees and associates of the enterprise, knowingly and routinely directed the sale of processed tomato products to SK Foods' customers, which did not meet the specifications outlined in those customers' contracts. In order to conceal, the fact that the product was noncompliant with contractual requirements, and to induce the enterprise's customers to do business with, and to release funds to the enterprise, RAHAL, assisted by other leaders, employees and associates of the enterprise, knowingly and routinely directed the falsification of both internal documentation, and customer-bound product labels, invoices, bills of lading, and Certificates of Analysis ("COA"), in order to make it appear as if the quality and content of the processed tomato products shipped to customers satisfied contractual requirements.

The Racketeering Conspiracy

8. Beginning in or about January 2004, and continuing through about April 2008, within the Eastern District of California and elsewhere, defendant RANDALL LEE RAHAL, together with others, being persons employed by and associated with SK Foods, an enterprise, which engaged in, and the activities of which affected interstate and foreign commerce, knowingly and intentionally conspired to violate 18 U.S.C. § 1962(c), that is, to conduct and participate, directly and indirectly, in the conduct of the affairs of SK Foods through a pattern of racketeering activity, as that terra is defined in Sections 1961(1) and 1961(5) of Title 18, United States Code, consisting of multiple acts indictable under the following provisions of federal law: 18 U.S.C. §§ 1341 and 1346 (honest services mail fraud) ; 18 U.S.C. § 1341 (mail fraud); and 18 U.S.C. § 1343 (wire fraud), and multiple acts involving bribery chargeable under the following provisions of state law: N.J. Stat. Ann. § 2C:21-10 (2008) ; Cal. Penal Code § 641.3 (2008) ; and Tex. Penal Code § 32.43 (2008).

9. It was a further part of the conspiracy that RAHAL agreed that a conspirator would commit at least two acts of racketeering activity in the conduct of the affairs of the enterprise.

All in violation of Title 18, United States Code, Section 1962(d).

COUNT TWO: [18 U.S.C. § 1957 - Money Laundering]

The United States Attorney further charges: THAT

RANDALL LEE RAHAL

defendant herein, on or about April 16, 2007, in District of New Jersey, did knowingly engage and attempt to engage in a monetary transaction, by, through and to a financial institution, affecting interstate and foreign commerce, in criminally derived property of a value greater than $10,000, that is, a withdrawal in the amount of $12,896 by way of a check drawn on Sun National Bank account number XXXXXX5624, in the name of Intramark USA, such property having been derived from a specified unlawful activity to wit; a scheme to defraud in violation of 18 U.S.C. §§ 1341, 1343 and 1346. All in violation of Title 18, United States Code, Sections 1957 and 2.

COUNT THREE: [15 U.S.C. § 1 - Price Fixing, and 18 U.S.C. § 2 -Aiding and Abetting]

The United States Attorney further charges:

RANDALL LEE RAHAL

defendant herein, as follows:

1. The allegations contained in paragraphs 1 through 6 of Count One of this Information are realleged and incorporated herein as if fully set forth.

2. Beginning at least as early as February 2006 and continuing until approximately April 2008, the defendant RANDALL LEE RAHAL and co-conspirators entered into and engaged in a combination and conspiracy to suppress and restrain competition for processed tomato products sold in the United States, in unreasonable restraint of interstate trade and commerce, in violation of the Sherman Act, Title 15, United States Code, Section 1.

3. The charged combination and conspiracy consisted of a continuing agreement, understanding, and concert of action among the defendant and co-conspirators, the substantial terms of which were:

  1. to allocate among the defendant and conspirators contracts for the sale of processed tomato products;
  2. to fix prices for, and submit collusive, noncompetitive, and rigged bids for contracts for the sale of processed tomato products; and
  3. to provide product and receive payment from customers as a result of the allocation and collusive bidding.

4. For the purpose of forming and carrying out the charged combination and conspiracy, the defendant and co-conspirators did those things that they combined and conspired to do, including, among other things:

  1. participating in meetings, conversations, and communications to discuss the prices of processed tomato products;
  2. agreeing, during those meetings, conversations, and communications, to fix prices of processed tomato products to charge to customers located in the United States; and
  3. issuing price quotations in accordance with the agreements reached.

5. Various corporations and individuals, not made defendants in this Information, participated as co-conspirators in the offense charged in this Information and performed acts and made statements in furtherance of it.

6. During the period covered by this Information, defendant RAHAL and co-conspirators sold and distributed processed tomato products in a continuous and uninterrupted flow of interstate trade and commerce to customers located in states other than the states in which the co-conspirators produced processed tomato products.

7. The business activities of defendant RAHAL and coconspirators that are the subject of this Information were within the flow of, and substantially affected, interstate and foreign trade and commerce.

8. The defendant, RANDALL LEE RAHAL, aided, abetted, counseled, commanded, induced, and procured the combination and conspiracy charged in this Count and willfully caused others to perform acts and make statements in furtherance of the charged combination and conspiracy, in violation of Title 18, United States Code, Section 2.

Dated: December 10, 2008 Respectfully Submitted,


    McGregor W. Scott
United States Attorney


By: _______________/s/________________
BENJAMIN B. WAGNER
SEAN C. FLYNN
Assistant U.S. Attorneys


DEBORAH A. GARZA
Acting Asst. Attorney General


By: _______________/s/________________
BARBARA NELSON
RICHARD COHEN
LARA KROOP
Trial Attorneys
U.S. Department of Justice
Antitrust Division