Information
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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA
THE UNITED STATES OF AMERICA, THROUGH ITS ATTORNEYS, CHARGES THAT: DESCRIPTION OF THE OFFENSE 1. Beginning at least as early as June 2000 and continuing until as late as August 2005, the exact dates being unknown to the United States, the defendant and co-conspirators entered into and engaged in a combination and conspiracy to suppress and eliminate competition by allocating customers and rigging bids for contracts of foam-filled marine fenders and buoys in the United States and elsewhere. The combination and conspiracy engaged in by the defendant and co-conspirators was in unreasonable restraint of interstate and foreign trade and commerce in violation of Section 1 of the Sherman Act (15 U.S.C. § 1). 2. 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 to allocate customers and rig bids for contracts of foam-filled marine fenders and buoys in the United States and elsewhere. The victims of this conspiracy included the U.S. Coast Guard and elements of the Department of Defense, including the U.S. Navy, as well as private companies. 3. 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:
4. During the entire period covered by this Information, the defendant was president of a firm located in Clearbrook, Virginia that is engaged in the manufacture and sale of marine products, including foam-filled marine fenders and buoys, and plastic marine pilings. In December 2002, that firm was purchased by a corporation whose ultimate parent entity is located in Trelleborg, Sweden. 5. Various corporations and individuals, not made defendants in this Information, participated as co-conspirators in the offense charged herein and performed acts and made statements in furtherance thereof. 6. Foam-filled marine fenders are used as a cushion between ships and either fixed structures such as docks or piers, or floating structures such as other ships. Foam-filled buoys are used in a variety of applications including as channel markers and navigational aids. Foam-filled marine fenders and buoys are constructed of an elastomer shell filled with closed-cell polyethylene foam. During the period covered by this Information, the defendant's firm manufactured and sold foam-filled marine fenders and buoys in the United States and elsewhere. 7. During the period covered by this Information, foam-filled marine fenders and buoys sold by one or more of the conspirator firms, and equipment and supplies necessary to the production and distribution of foam-filled marine fenders and buoys, as well as payments for foam-filled marine fenders and buoys, traveled in interstate and foreign commerce. 8. During the period covered by this Information, the business activities of defendant and his co-conspirators in connection with the production and sale of foam-filled marine fenders and buoys that are the subject of this Information were within the flow of, and substantially affected, interstate and foreign trade and commerce. JURISDICTION AND VENUE 9. The combination and conspiracy charged in Count One of this Information was carried out, in part, within the Eastern District of Virginia within the five years preceding the filing of this Information. (All in violation of Title 15, United States Code, Section 1). THE UNITED STATES OF AMERICA, THROUGH ITS ATTORNEYS, FURTHER CHARGES THAT: DESCRIPTION OF THE OFFENSE 1. Beginning at least as early as December 2000 and continuing until as late as May 2003, the exact dates being unknown to the United States, the defendant and co-conspirators entered into and engaged in a combination and conspiracy to suppress and eliminate competition by allocating customers and rigging bids for contracts of plastic marine pilings in the United States and elsewhere. The combination and conspiracy engaged in by the defendant and co-conspirators was in unreasonable restraint of interstate and foreign trade and commerce in violation of Section 1 of the Sherman Act (15 U.S.C. § 1). 2. The charged combination and conspiracy consisted of continuing agreements, understandings, and concerts of action among the defendant and co-conspirators, the substantial terms of which were to allocate customers and rig bids for contracts of plastic marine pilings in the United States and elsewhere. The victims of this conspiracy included the Department of Defense, including the U.S. Navy, as well as private companies. 3. 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:
4. Each and every allegation contained in Paragraphs 4-5 of Count One of this Information is here realleged as if fully set forth in this Count. 5. Plastic marine pilings are reinforced synthetic pilings, resembling telephone poles, used in commercial dock and pier construction. Plastic marine pilings are substitutes for traditional wood timber pilings. They are often used in port and pier construction projects with foam-filled marine fenders, which are used as cushions between ships and either fixed structures, such as docks or piers, or floating structures, such as other ships. During the relevant period, the defendant's firm manufactured and sold plastic marine pilings in the United States and elsewhere. 6. During the relevant period, plastic marine pilings sold by one or more of the conspirator firms, and equipment and supplies necessary to the production and distribution of plastic marine pilings, as well as payments for plastic marine pilings, traveled in interstate and foreign commerce. 7. During the relevant period, the business activities of defendant and his co-conspirators in connection with the production and sale of plastic marine pilings that are the subject of this Information were within the flow of, and substantially affected, interstate and foreign trade and commerce. JURISDICTION AND VENUE 8. The combination and conspiracy charged in Count Two of this Information was carried out, in part, within the Eastern District of Virginia within the five years preceding the filing of this Information. (All in violation of Title 15, United States Code, Section 1). THE UNITED STATES OF AMERICA, THROUGH ITS ATTORNEYS, FURTHER CHARGES THAT: 1. Each and every allegation contained in Paragraphs 4-5 of Count One of this Information is here realleged as if fully set forth in this Count. 2. Each and every allegation contained in Paragraph 6 of Count Two of this Information is here realleged as if fully set forth in this Count. DESCRIPTION OF THE OFFENSE 3. Beginning at least as early as January 2000 and continuing until at least December 2002, the exact dates being unknown to the United States, the defendant and co-conspirators willfully combined, conspired, and agreed with each other to commit an offense against the United States, to wit:
4. It was an object of the conspiracy that the defendant and co-conspirators corruptly give, offer, or agree to give money with the intent to influence an employee of the New York City Department of Citywide Administrative Services ("DCAS"), an agency of the government of New York City, which local government receives federal assistance in excess of $10,000 in any one year period, in the awarding of contracts, purchase orders, and/or change orders for plastic marine pilings on a project known as the Reconstruction of Pier 86 in the Borough of Manhattan, New York. The value of the contracts, purchase orders, and/or change orders for plastic marine pilings on the Reconstruction of Pier 86 exceeded $5,000. MANNER AND MEANS OF THE CONSPIRACY 5. It was a part of the conspiracy that the defendant and co-conspirators added a "special commission" of ten percent to the price charged by the defendant's firm for work on the Reconstruction of Pier 86. 6. It was further part of the conspiracy that defendant and co-conspirators agreed to pay and did pay the "special commission" to a DCAS employee in order to influence the DCAS employee to use his position to direct purchase orders and/or change orders for work on the Reconstruction of Pier 86 to the defendant's firm. OVERT ACTS 7. In furtherance of the conspiracy, and to effect the illegal objects thereof, the defendant and co-conspirators committed overt acts between January 2000 and December 2002, including the following:
JURISDICTION AND VENUE 8. The combination and conspiracy charged in Count Three of this Information was carried out, in part, within the Eastern District of Virginia within the five years preceding the filing of this Information. (All in violation of Title 18, United States Code, Section 371). Dated:
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