Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Japanese auto parts executives sentenced in U.S. price fixing investigation, (Mar 13, 2014)

By Jeffrey May, J.D.

Two former executives of Diamond Electric Mfg. Co. Ltd., a Japanese automobile parts manufacturer, have been sentenced to serve prison time and pay fines after pleading guilty to U.S. charges that they participated in a conspiracy to fix prices for automobile ignition coils. On January 31, the Department of Justice announced separate felony charges against the former company president—Shigehiko Ikenaga—and the former company vice-president—Tatsuo Ikenaga. Judgments in these cases were entered on March 11 (U.S. v. Shigehiko Ikenaga, Criminal No. 2:14-cr-20045; U.S. v. Tatsuo Ikenaga, Criminal No. 2:14-cr-20046).

The federal district court in Detroit on March 10 sentenced Shigehiko Ikenaga to 16 months in a U.S. prison and Tatsuo Ikenaga to 13 months in a U.S. prison. In addition, each defendant was ordered to pay a $5,000 fine.

Between 2003 and 2010, Tatsuo Ikenaga and Shigehiko Ikenaga participated in the conspiracy as executives at Diamond Electric, it was charged. According to the government, Shigehiko Ikenaga was the company president, and Tatsuo Ikenaga was a managing director, and then vice president, and simultaneously served as president of Diamond Electric’s U.S. subsidiary during the relevant period.

Diamond Electric pleaded guilty in September 2013 for its involvement in the conspiracy involving ignition coils. Ignition coils are part of a car’s fuel ignition system and release electric energy suddenly to ignite a fuel mixture.

Attorneys: James A. Backstrom (James A. Backstrom Counsellor at Law) for Shigehiko Ikenaga. Roxann E. Henry (Morrison & Foerster LLP) for Tatsuo Ikenaga.

Companies: Diamond Electric Mfg. Co. Ltd.

News: Antitrust AntitrustDivisionNews