Antitrust Law Daily Wrap Up, TOP STORY: Taiwan Firm, U.S. Subsidiary Sentenced in Auto Lights Cartel Probe, (Oct 17, 2012)

By Jeffrey May, J.D.

The Department of Justice announced on October 16 that Taiwan-based Eagle Eyes Traffic Industrial Co. Ltd., and its U.S. subsidiary, E-Lite Automotive Inc., were sentenced to pay a total of $5 million in criminal fines after pleading guilty to participating in a seven-year, international conspiracy to fix the prices of aftermarket auto lights (U.S. v. Eagle Eyes Traffic Industrial Co., Ltd., E-Lite Automotive, Inc., Homy Hong-Ming Hsu, and Yu-Chu Lin aka David Lin, NDCal., Case No. 11-0488 RS, October 16, 2012, Seeborg, R.).

The companies and two highest-ranking officers of Eagle Eyes—its chairman and vice chairman--were indicted in 2011. According to the charge, Eagle Eyes and E-Lite conspired with others to suppress and eliminate competition by fixing the prices of aftermarket auto lights. Eagle Eyes participated in the conspiracy from about July 2001 until about September 2008, and E-Lite participated from about March 2006 until about September 2008. The company's chairman, who resides in Taiwan, remains a fugitive. The vice chairman, who was arrested at Los Angeles International Airport over a year ago, pleaded guilty on September 25, 2012. He is scheduled to be sentenced in January 2013.

“The conspirators engaged in an international price-fixing scheme that undermined competition in the aftermarket auto lights industry,” said Joseph Wayland, Acting Assistant Attorney General in charge of the Department of Justice Antitrust Division, announcing the sentencing. “As a result of the division’s vigorous enforcement efforts, four corporations and five executives have been charged.”

Two other U.S. distributors of aftermarket auto lights—Maxzone Vehicle Lighting Corporation and Sabry Lee (U.S.A.) Inc.—as well as three other industry executives have also pleaded guilty to participating in the conspiracy.

The investigation is being conducted by the Department of Justice Antitrust Division San Francisco Office and the FBI in San Francisco.

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