Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Alleged marine hose cartel participant extradited to face charges in U.S., (Apr 4, 2014)

By Jeffrey May, J.D.

An Italian national who was charged by the Department of Justice Antitrust Division with participating in a conspiracy to rig bids, fix prices, and allocate market shares for sales of marine hose was scheduled to appear in the federal district court in Ft. Lauderdale today after his extradition from Germany, the Justice Department has announced. The extradition of Romano Pisciotti marks the first successfully litigated extradition on an antitrust charge (U.S. v. Pisciotti, Case No. 10-60232).

According to a one-count felony indictment filed under seal on August 26, 2010, and ordered unsealed on August 5, 2013, Pisciotti—a former executive with marine hose manufacturer Parker ITR Srl—carried out the conspiracy by agreeing during meetings, conversations, and communications to allocate shares of the marine hose market among the conspirators; to use a price list for marine hose in order to implement the conspiracy; and to not compete for customers with other marine hose sellers either by not submitting prices or bids or by submitting intentionally high prices or bids.

Parker ITR Srl was among the five companies that have pleaded guilty to U.S. charges that it participated in the conspiracy. In addition, nine individuals have admitted to their role in the scheme. Marine hose is a flexible rubber hose used to transfer oil between tankers and storage facilities.

In 2010, Parker agreed to pay a $2.29 million fine to end the U.S. criminal case against it. The European Commission (EC) also found that Parker and other companies participated in a marine hose cartel. The EC fined Parker, but that fine was later reduced from €25.61 million to €6.40 million.

Pisciotti was arrested in Germany in June 2013. He arrived in the United States yesterday.

“This first of its kind extradition on an antitrust charge allows the department to bring an alleged price fixer to the United States to face charges of participating in a worldwide conspiracy,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice Antitrust Division. “This marks a significant step forward in our ongoing efforts to work with our international antitrust colleagues to ensure that those who seek to subvert U.S. law are brought to justice.”

According to the Justice Department, the government’s investigation into anticompetitive conduct in the marine hose industry is ongoing.

Companies: Parker ITR Srl

News: Antitrust AntitrustDivisionNews