Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Third Japanese shipping executive sentenced in U.S. price fixing investigation, (Mar 11, 2015)
Organizations Mentioned:Compania Sud Americana de Vapores S.A. | Kawasaki Kisen Kaisha, Ltd. | Nippon Yusen Kabushiki Kaisha
By Jeffrey May, J.D.
A former executive of Nippon Yusen Kabushiki Kaisha, Ltd. (NYK), who was charged earlier this year by the Department of Justice Antitrust Division with conspiring to fix prices, allocate customers, and rig bids of “international ocean shipping services for roll-on, roll-off cargo,” has been sentenced to serve 15 months in prison. The Justice Department announced yesterday that Susumu Tanaka, who had served as a manager in NYK’s car carrier division, pleaded guilty to participating in the conspiracy. In addition to imposing the 15-month prison term, the federal district court in Baltimore ordered Tanaka to pay a $20,000 criminal fine (U.S. v. Tanaka, Criminal No. 1:15-cr-00022-GLR).
A one-count felony charge was filed against Tanaka on January 16. According to the allegations, Tanaka participated in the conspiracy from approximately April 2004 until about September 2012. The charge against Tanaka followed NYK's agreement to plead guilty and to pay a $59.4 million criminal fine for its involvement in the conspiracy. The company was charged in late December. NYK admitted to participation in the conspiracy between February 1997 and September 2012. NYK has been cooperating with the Justice Department’s investigation since it commenced in September 2012.
Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel. Examples of this type of cargo include new and used cars and trucks and construction and agricultural equipment.
Tanaka is the third industry executive to be sentenced for his role in the conspiracy. Two former employees of Japanese shipping company Kawasaki Kisen Kaisha Ltd. (K-Line) also have been sentenced on guilty pleas. K-Line and a third company employee have agreed to plead guilty. Chilean shipping company Compania Sud Americana de Vapores S.A. was the first company charged in the conspiracy in early 2014.
Companies: Kawasaki Kisen Kaisha, Ltd.; Nippon Yusen Kabushiki Kaisha; Compania Sud Americana de Vapores S.A.
News: Antitrust AntitrustDivisionNews