An Inside Look At A Cartel At Work

An Inside Look At A Cartel At Work - U.S. DEPARTMENT OF...

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U.S. DEPARTMENT OF JUSTICE American Bar Association Section of Antitrust Law 48 Annual Spring Meeting th An Inside Look At A Cartel At Work: Common Characteristics Of International Cartels By James M. Griffin Deputy Assistant Attorney General Antitrust Division U.S. Department of Justice Presented at Omni Shoreham Hotel Washington, D.C. April 6, 2000
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The material in this paper draws heavily, and often verbatim, from materials 1 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 accomplished. 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 2 accompanying booklet containing transcripts of the tape segments, are available at no charge. 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. -1- AN INSIDE LOOK AT A CARTEL AT WORK: COMMON CHARACTERISTICS OF INTERNATIONAL CARTELS 1 I. Introduction 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 2 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 Company (“ADM”). 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 additive lysine. 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.
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-2- The lysine tapes offer a rare bird’s eye view of the inner workings of an international cartel. You will see executives from multi-national firms reaching
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An Inside Look At A Cartel At Work - U.S. DEPARTMENT OF...

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