THREE PLEAD GUILTY IN ONGOING ELECTROLYTIC CAPACITOR PRICE FIXING INVESTIGATION

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, August 22, 2016

Three Companies Agree to Plead Guilty for Fixing Prices of Electrolytic Capacitors

Rubycon, Elna and Holy Stone Are Latest Companies to Plead Guilty in Ongoing Investigation

Rubycon Corporation, Elna Co., Ltd. and Holy Stone Holdings Co., Ltd. will plead guilty for their roles in a conspiracy to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.

“The Antitrust Division has now charged five companies and one individual for their participation in this international price-fixing conspiracy,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.  “The electrolytic capacitors conspiracy affected millions of American consumers who use electronic devices containing capacitors every day.”

Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.

The division filed one-count felony charges against each of the three companies in U.S. District Court in San Francisco today.  In addition to pleading guilty to the charges against them, each company has agreed to pay a criminal fine and cooperate with the division’s ongoing investigation.  The plea agreements are subject to court approval.

Previously, NEC TOKIN Corp. and Hitachi Chemical Co. Ltd. pleaded guilty to participating in the same worldwide conspiracy.  NEC TOKIN was sentenced to pay a fine of $13.8 million in January 2016, and Hitachi Chemical was sentenced to pay a fine of $3.8 million in June 2016.  On March 12, 2015, a grand jury indicted Takuro Isawa, a former Global Sales General Manager for one of the capacitor manufacturers, for his alleged participation in the conspiracy.

The charges today results from an ongoing federal antitrust investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry.

DOJ ANNOUNCES HARLEY-DAVIDSON TO STOP SALES OF ILLEGAL DEVICES TO INCREASE AIR POLLUTION

FROM:  U.S. JUSTICE DEPARTMENT

 Department of Justice

Office of Public Affairs

FOR IMMEDIATE RELEASE

Thursday, August 18, 2016

Harley-Davidson to Stop Sales of Illegal Devices That Increased Air Pollution from the Company’s Motorcycles

The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Harley-Davidson Inc., Harley-Davidson Motor Company Group LLC, Harley-Davidson Motorcycle Company Inc. and Harley-Davidson Motor Company Operations Inc. (collectively Harley-Davidson), that requires the companies to stop selling and to buy back and destroy illegal devices that increase air pollution from their motorcycles and to sell only models of these devices that are certified to meet Clean Air Act emissions standards.  Harley-Davidson will also pay a $12 million civil penalty and spend $3 million to mitigate air pollution through a project to replace conventional woodstoves with cleaner-burning stoves in local communities.

The government’s complaint, filed today along with the settlement, alleges that Harley-Davidson manufactured and sold approximately 340,000 illegal devices, known as “super tuners,” that, once installed, caused motorcycles to emit higher amounts of certain air pollutants than what the company certified to EPA.  Aftermarket defeat devices like these super tuners alter a motor vehicle’s emissions controls and are prohibited under the Clean Air Act for use on vehicles that have been certified to meet EPA emissions standards.  Harley-Davidson also made and sold more than 12,000 motorcycles that were not covered by an EPA certification that ensures a vehicle meets federal clean air standards.

“Given Harley-Davidson’s prominence in the industry, this is a very significant step toward our goal of stopping the sale of illegal aftermarket defeat devices that cause harmful pollution on our roads and in our communities,” said Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division.  “Anyone else who manufactures, sells, or installs these types of illegal products should take heed of Harley-Davidson’s corrective actions and immediately stop violating the law.”

“This settlement immediately stops the sale of illegal aftermarket defeat devices used on public roads that threaten the air we breathe,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance.  “Harley-Davidson is taking important steps to buy back the ‘super tuners’ from their dealers and destroy them, while funding projects to mitigate the pollution they caused.”

Since January 2008, Harley-Davidson has manufactured and sold two types of tuners, which when hooked up to Harley-Davidson motorcycles, allow users to modify certain aspects of a motorcycles’ emissions control system.  These modified settings increase power and performance, but also increase the motorcycles’ emissions of hydrocarbons and nitrogen oxides (NOx).  These tuners have been sold at Harley-Davidson dealerships across the country.

The Clean Air Act requires motor vehicle manufacturers to certify to EPA that their vehicles will meet applicable federal emissions standards to control air pollution and every motor vehicle sold in the U.S. must be covered by an EPA-issued certificate of conformity.  The Clean Air Act prohibits manufacturers from making and selling devices that bypass, defeat, or render inoperative a motor vehicle’s EPA-certified emissions control system.  The act also prohibits any person from removing or rendering inoperative a motor vehicle’s certified emissions control system and from causing such tampering.  The complaint alleges violations of both these provisions.

Under the settlement, Harley-Davidson will stop selling the illegal aftermarket defeat devices in the United States by August 23.  Harley-Davidson will also offer to buy back all such tuners in stock at Harley-Davidson dealerships across the country and destroy them.  The settlement requires the company to obtain a certification from the California Air Resources Board (CARB) for any tuners it sells in the United States in the future.  The CARB certification will demonstrate that the CARB-certified tuners do not cause Harley-Davidson’s motorcycles to exceed the EPA-certified emissions limits.  Harley-Davidson will also conduct tests on motorcycles that have been tuned with the CARB-certified tuners and provide the results to EPA to ensure that its motorcycles remain in compliance with EPA emissions requirements.  In addition, for any super tuners that Harley-Davidson sells outside the United States in the future, it must label them as not for use in the United States.

The complaint also alleges that Harley-Davidson made and sold more than 12,000 motorcycles from model years 2006, 2007 and 2008 that were not covered by an EPA certificate of conformity.  A certificate of conformity covers only the motorcycle models that were included in the certification application and that are listed on the certificate.  These 12,000 motorcycles were models that were not included in Harley-Davidson’s applications and that were not listed as covered by the relevant certificate.  Under the consent decree, Harley-Davidson will ensure that all of its future motorcycle models intended for sale in the United States are fully certified by EPA.

Hydrocarbon and NOx emissions contribute to harmful ground-level ozone and NOx also contributes to fine particulate matter pollution. Exposure to these pollutants has been linked with a range of serious health effects, including increased asthma attacks and other respiratory illnesses.  Exposure to ozone and particulate matter has also been associated with premature death due to respiratory-related or cardiovascular-related effects.  Children, the elderly and people with pre-existing respiratory disease are particularly at risk of health effects from exposure to these pollutants.  The woodstove project, which Harley-Davidson will undertake in conjunction with an independent third party, will eliminate excess air pollution caused by using the illegal tuners by providing cleaner-burning stoves to designated local communities, thereby assuring better air quality in the future.

EPA discovered the violations through a routine inspection and information Harley-Davidson submitted after subsequent agency information requests.

The settlement, a proposed consent decree lodged in the U.S. District Court for the District of Columbia, is subject to a 30-day public comment period before it can be entered by the court as final judgment.

DOJ ANNOUNCES CEMENT MAKER TO REDUCE AIR POLLUTION UNDER SETTLEMENT

FROM:  U.S. JUSTICE DEPARTMENT 

AIR POLLUTION, EPA, 

Wednesday, July 27, 2016

Cement Manufacturer Cemex to Reduce Harmful Air Pollution from Five Plants under Settlement with EPA and Justice Department

The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Cemex Inc., under which the company will invest approximately $10 million to cut emissions of harmful air pollution at five of its cement manufacturing plants in Alabama, Kentucky, Tennessee and Texas to resolve alleged violations of the Clean Air Act.  Under the consent decree lodged in the U.S. District Court for the Eastern District of Tennessee, Cemex will also pay a $1.69 million civil penalty, conduct energy audits at the five plants, and spend $150,000 on energy efficiency projects to mitigate the effects of past excess emissions of nitrogen oxides (NOx)from its facilities.

“The cement sector is a significant source of air pollution posing real health risks to the communities where they reside, including vulnerable communities across the U.S. who deserve better air quality than they have gotten over the years,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement will require Cemex to pay a penalty and install important pollution controls to achieve reductions in harmful air emissions, thereby making  Cemex a better neighbor to local residents.”

“This settlement requires Cemex to use state of the art technology to reduce harmful air pollution, improving public health in vulnerable communities across the South and Southeast,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance.  “EPA is committed to tackling clean air violations at the largest sources, cutting the pollutants that cause respiratory illnesses like asthma.”

The five Cemex facilities produce Portland cement, a key ingredient in concrete, mortar, and stucco are located in Demopolis, Alabama, Louisville, Kentucky, Knoxville, Tennessee, and New Braunfels and Odessa, Texas.  The Knox County, Tennessee, and Louisville air pollution control authorities participated in this settlement.

Cemex is required to install pollution control technology that will reduce emissions of  NOx and establish strict limits for sulfur dioxide (SO2) emissions, which will improve air quality in local communities.  Cemex will install and continuously operate a selective non-catalytic reduction system for controlling NOx at the five plants and meet emission limits that are consistent with the current best available control technology for NOx.  EPA estimates this will result in NOx emissions reductions of over 4,000 tons per year.  Each facility will also be subject to strict SO2 emission limits.

NOx and SO2, two key pollutants emitted from cement plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze.  The pollutants are converted in the air into fine particles of particulate matter that can cause severe respiratory and cardiovascular impacts and premature death.  Reducing these harmful air pollutants will benefit the communities located near the Cemex plants, particularly communities disproportionately impacted by environmental risks and vulnerable populations, including children.

This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes cement manufacturing plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements.  The total combined SO2 and NOx emission reductions secured from cement plant settlements under this initiative will exceed 75,000 tons each year once all the required pollution controls have been installed and implemented.

US Labor Department sues Enterprise Rent-A-Car of Baltimore for racial discrimination against applicants for management trainee - United States Department of Labor

US Labor Department sues Enterprise Rent-A-Car of Baltimore for racial discrimination against applicants for management trainee - United States Department of Labor: BALTIMORE – Enterprise RAC Company of Baltimore, LLC, a subsidiary of one of the world’s largest vehicle rental companies and a federal contractor, is discriminating against African-American applicants pursuing entry-level management trainee positions, the U.S. Department of Labor alleges in a lawsuit filed recently.

Subsidiary of Ashland Inc., leading chemical company, settles charges of hiring discrimination with US Labor Department - United States Department of Labor

Subsidiary of Ashland Inc., leading chemical company, settles charges of hiring discrimination with US Labor Department - United States Department of Labor: RICHMOND, Va. – A subsidiary of one of the world’s leading specialty chemical companies has entered into a conciliation agreement with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs to resolve allegations of race-based hiring discrimination.

NATIONAL CONSULTING COMPANY TO PAY $11 MILLION RESOLVING FALSE CLAIMS ALLEGATIONS

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, May 31, 2016

Deloitte Consulting LLP Agrees to Pay $11 Million for Alleged False Claims Related to General Services Administration Contract

The Department of Justice announced today that Deloitte Consulting LLP (Deloitte) has agreed to pay $11.38 million to resolve allegations under the False Claims Act that it submitted false claims under a General Services Administration (GSA) contract.  Deloitte is a nationwide consulting company headquartered in New York City.

“Contractors are expected to deal fairly with federal agencies when receiving taxpayer funds,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “As this settlement demonstrates, we will take action against those who knowingly fail to live up to the terms of their government contracts.”  

In 2000, GSA awarded Deloitte a contract for the provision of information technology services.  The contract required Deloitte to reduce the prices it charged the government if it offered lower prices to specific commercial customers during the course of the contract.  This settlement resolves allegations that between 2006 and 2012, Deloitte failed to comply with the price reductions clause in its contract, resulting in government customers paying more for Deloitte’s services than comparable commercial customers.

“American taxpayers deserve fair deals and prices from GSA contractors,” said GSA Inspector General Carol Fortine Ochoa.  “I appreciate the hard work and dedication that led to this significant recovery.”

This case was handled by the Civil Division’s Commercial Litigation Branch and the GSA Office of Inspector General.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

CORNING INTERNATIONAL K.K. WILL PAY $66.5 MILLION FOR PRICE FIXING

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, May 16, 2016

Corning International Kabushiki Kaisha to Pay $66.5 Million for Fixing Prices of Automotive Parts

Corning International Kabushiki Kaisha (Corning International K.K.) has agreed to plead guilty and pay a $66.5 million criminal fine for conspiring to fix prices, rig bids and allocate the market for ceramic substrates sold in the United States and elsewhere, and used in catalytic converters supplied to automobile manufacturers in the United States and elsewhere, the Justice Department announced today.

According to the felony charge filed today in U.S. District Court for the Eastern District of Michigan, Corning International K.K., based in Tokyo, conspired to fix prices, rig bids and allocate the market for ceramic substrates, from at least as early as July 1999 until on or about July 2011.  The products were installed in automotive emissions control systems and supplied to automobile manufacturers including Ford Motor Company, General Motors LLC, Honda Motor Company Ltd., and certain of their subsidiaries, affiliates, and suppliers in the United States and elsewhere.  Corning International K.K. agreed to cooperate in the department’s ongoing investigation.  The plea agreement will be subject to court approval.

“Corning International K.K. – and Nobuhiko Niwa, its former executive, who was indicted last week – spent more than a decade colluding on sales of an important component of emissions systems for use in cars made and sold in the United States and elsewhere,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.  “But they have now been held accountable for the competitive harm they caused.”

“Corning International K.K.'s conspiracy to rig bids and fix prices brought the company increased revenues at a cost to auto manufacturers, suppliers, and ultimately, consumers,” said Special Agent in Charge David P. Gelios of the FBI’s Detroit Division.  “Attempts to thwart the free market system are damaging to our economy, and thereby its consumers, and will be actively investigated and prosecuted.”

Including Corning International K.K., 40 companies have been charged in connection with this investigation and have agreed to pay more than $2.7 billion in criminal fines.  In addition, 59 individuals have been charged, including a former executive of Corning International K.K.  On May 11, 2016, a federal grand jury in the Eastern District of Michigan returned an indictment against Nobuhiko Niwa, a Japanese national, for his role in the conspiracy.  Niwa was charged with participating in the conspiracy from at least as early as July 1999 until on or about July 2011.

This charge results from an ongoing investigation conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Division with the assistance of the FBI Headquarters’ International Corruption Unit.