BUNKER HOSE CARTEL GUILTY PLEAS

[proud_ionian]

source: MGN

AN Italian marine hose manufacturer and the former president of its former US subsidiary have agreed to plead guilty and pay more than $2 million in criminal fines for participating in a conspiracy to rig bids, fix prices, and allocate market shares of marine hose sold in the US and elsewhere, according to the US Department of Justice. The former president has agreed to serve jail time. Additionally, an Italian executive of another marine hose manufacturer located in Veniano, Italy, has also agreed to plead guilty for participating in the same conspiracy.

A one-count felony charge has been filed in Florida against Manuli Rubber Industries and Robert Furness, the former president of Manuli's former US-based subsidiary. Under the terms of the plea agreements, which are subject to court approval, Manuli has agreed to pay a criminal fine of US$2m, and Furness has agreed to serve 14 months in prison and pay a US$75,000 criminal fine. Both Manuli and Mr Furness have also agreed to cooperate fully in the Department’s ongoing antitrust investigation.

Separately Giovanni Scodeggio, an Italian citizen who is the manager of Parker ITR’s Oil & Gas Business Unit, which is responsible for the sale of marine hose, was charged in a separate one-count felony information today in U.S. District Court in Houston. Under the terms of his plea agreement, which is subject to court approval, Mr Scodeggio has agreed to let the court determine his sentence, to pay a $20,000 criminal fine, and to cooperate with the Department’s ongoing antitrust investigation. Scodeggio was arrested and first charged by a criminal complaint in May 2007.

Eight foreign executives, including Mr Scaglia and Mr Scodeggio, were arrested on May 2, 2007, in Houston and San Francisco and charged for their role in the marine hose cartel, following a cartel meeting in Houston. Two UK-based executives Bryan Allison and David Brammar, of Dunlop Oil & Marine Ltd., a manufacturer of marine hose located in Grimsby, UK, pleaded guilty to participating in the marine hose conspiracy. Under the terms of their plea agreements, Allison was sentenced to pay a $100,000 criminal fine and agreed to serve 24 months in prison and Brammar was sentenced to pay a $75,000 criminal fine and agreed to serve 20 months in prison. Another arrested executive, Peter Whittle, formerly a Dunlop employee and now the sole proprietor of PW Consulting (Oil & Marine) Ltd., pleaded guilty for his leadership role in the conspiracy in December 2007, was sentenced to pay a $100,000 criminal fine, and agreed to serve 30 months in prison. However the three men were convicted in the UK on similar charges and sentenced to longer sentences than the US-imposed ones. Consequently they will not have to serve time in a US jail.