The material in this paper draws heavily, and often verbatim, from materials
developed and prepared by my predecessor, Gary R. Spratling.
It was Mr. Spratling,
working closely with James H. Mutchnik, formerly of the Division’s Chicago Field
Office, Scott D. Hammond, the Division’s Director of Criminal Enforcement, and
myself, who first developed an International Anti-Cartel Enforcement Educational
Program based on the lysine tapes.
Mr. Spratling conducted numerous programs
based on these materials primarily for our sister foreign law enforcement agencies.
Mr. Spratling and I had planned to make these materials publicly available at an
international antitrust workshop, but he left the Division before that could be
It is with sincere gratitude to
Mr. Spratling that the Division makes these materials available to the public today.
Copies of the tape shown today, as well as additional copies of this
accompanying booklet containing transcripts of the tape segments, are available at
Please mail or fax (202-616-4529) your request to the United States
Department of Justice, Antitrust Division, Freedom of Information Act Unit, 325
Seventh Street, N.W., Suite 200, Washington, D.C., 20530.
You should receive your
copy within two weeks.
AN INSIDE LOOK AT A CARTEL AT WORK:
COMMON CHARACTERISTICS OF INTERNATIONAL CARTELS
I would like to talk to you this afternoon about some of the common
characteristics of international cartels -- how cartels are initiated; how they operate;
and how they attempt to conceal their activity from law enforcement.
In order to do
this, I am going to rely on some audio and video tapes of actual meetings involving
members of the lysine cartel.
These tapes were, of course, made covertly by the FBI
with the consent and assistance of a cooperating witness.
They were first shown
publicly at the trial of three former top executives from Archer Daniels Midland
ADM and its co-conspirators from Europe and Asia conspired to
fix prices and allocate sales volumes of the food additive citric acid and the feed
ADM pled guilty before trial and was sentenced to pay a $100
million fine - which at the time was nearly seven times larger than the previous
record fine in an antitrust case in the United States.
The ADM executives were
convicted at trial and were recently sentenced to fines of up to $350,000 and lengthy
prison sentences ranging from 24 to 30 months.