| FOR IMMEDIATE RELEASE
WEDNESDAY, JUNE 26, 1996
TDD (202) 514-1888
WASHINGTON, D.C. A Philadelphia federal grand jury returned an indictment today against two disposable plastic dinnerware companiesone based in Massachusetts and the other in South Carolinaand their two presidents, for conspiring to fix prices in the disposable plastic dinnerware industry, said the Department of Justice.
This is the Department's fifth case in its ongoing antitrust investigation into price fixing in the disposable plastic dinnerware industry. To date, the government has convicted three corporations and seven individuals. The companies were fined in excess of $8 million and the individuals received jail sentences ranging from eight to 21 months.
The one-count indictment, filed in U.S. District Court in Philadelphia, charged Amcel Corporation of Watertown, Massachusetts, and its president, Lloyd Gordon, Dispoz-O Plastics Inc. of Fountain Inn, South Carolina, and its president Peter Iacovelli, with conspiring to fix the price of plastic cutlery products sold throughout the United States between November 1991 and April 1992.
During that time, the conspirators telephoned and met secretly with each other to carry out the conspiracy. In 1994, a third plastic cutlery manufacturer, Polar Plastics, and two of its executives pleaded guilty to conspiring to fix the price of plastic cutlery between November 1991 and April 1992.
The Department's investigation began in the Minnesota Attorney General's office and has involved cooperation between U.S. and Canadian authorities.
This matter is being handled by the Antitrust Division's Litigation I Section with the assistance of the Federal Bureau of Investigation in Lansdale, Pennsylvania.
The maximum penalty for a corporation convicted under the Sherman Act is a fine of $10 million, twice the pecuniary gain the corporation derived from the crime, or twice the pecuniary loss caused to the victims of the crime, whichever is greater.
The maximum penalty for an individual convicted under the Sherman Act is three years in prison and a fine of $350,000, twice the pecuniary gain the individual derived from the crime, or twice and the pecuniary loss caused to the victims of the crime, whichever is greater.