The following excerpt is from the Department of Justice website:
DECEMBER 8, 2011
“WASHINGTON — Two executives of Luxembourg-based Cargolux Airlines International S.A. have each pleaded guilty and agreed to serve 13 months in prison for participating in a conspiracy to fix cargo rates for international air shipments, the Department of Justice announced.
Ulrich Ogiermann, the former president and CEO, and current employee of Cargolux, and Robert Van de Weg, the senior vice president of sales and marketing for Cargolux, pleaded guilty today to the charges contained in an indictment filed on Oct. 28, 2010, in U.S. District Court in West Palm Beach, Fla. Ogiermann and Van de Weg pleaded guilty to conspiring with others to suppress and eliminate competition by fixing and coordinating certain surcharges, including security and fuel surcharges, charged to customers located in the United States and elsewhere for air cargo shipments including shipments to and from the United States. According to the indictment, Ogiermann participated in the conspiracy from at least as early as October 2001 until at least February 2006, and Van de Weg participated in the conspiracy from at least as early December 2003 until at least February 2006. Under the plea agreements, Ogiermann and Van de Weg have also each agreed to pay a $20,000 criminal fine and to cooperate with the department's ongoing investigation.
Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.
Including Ogiermann and Van de Weg, a total of 22 airlines and 21 executives have been charged in the Justice Department's ongoing investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time.
Ogiermann and Van de Weg are charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $1 million and up to 10 years in prison. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.”
Showing posts with label AIR CARGO PRICE FIXING. Show all posts
Showing posts with label AIR CARGO PRICE FIXING. Show all posts
Saturday, December 10, 2011
Saturday, December 3, 2011
PRICE FIXING FUEL SURCHARGE RATES DURING HURRICANES GET GUILTY PLEA FROM FORMER AIRLINE EXECUTIVE
The following excerpt is from the Department of Justice website:
Wednesday, November 30, 2011
“Former Executive of Peruvian Airline Pleads Guilty to Fixing Fuel Surcharge Rates on Air Cargo Shipments Following Hurricanes Katrina and Rita
WASHINGTON — A former executive of a Peruvian airline pleaded guilty today for his role in a conspiracy to fix surcharges on air cargo shipments from the United States to South and Central America following Hurricanes Katrina and Rita, the Department of Justice announced.
George Gonzalez, former chief commercial officer of Cielos Airlines, a Peruvian air cargo carrier, pleaded guilty today in the Southern District of Florida to a one count charge of price fixing. On Oct. 28, 2010, Gonzalez and three other former airline executives were charged in Miami with conspiring to suppress and eliminate competition by agreeing to impose an increase to their fuel surcharges on air cargo shipped from the United States to locations in South and Central America. The indictment charged the executives with participating in the conspiracy beginning in or around late September 2005 until at least November 2005.
Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.
On Sept. 19, 2011, two of the other indicted former airline executives pleaded guilty to the charge. Guillermo “Willy” Cabeza, former president of Arrow Air, a Miami-based air cargo carrier, and Luis Juan Soto, former president of South Winds Cargo, a Miami-based air cargo carrier, pleaded guilty to the charge and are awaiting sentencing. In connection with their pleas, Gonzalez, Cabeza and Soto have each agreed to cooperate with the department in its investigation and to pay a criminal fine.
Gonzalez, Cabeza and Soto pleaded guilty to price fixing in violation of the Sherman Act, which carries a maximum $1 million fine and up to 10 years in prison. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
A total of 22 airlines and 21 executives, including Gonzalez, Cabeza and Soto, have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time.
Today’s guilty plea arose from an ongoing joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section and the Chicago Field Office, the FBI’s field offices in Miami and Washington, D.C., the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General.”
Wednesday, November 30, 2011
“Former Executive of Peruvian Airline Pleads Guilty to Fixing Fuel Surcharge Rates on Air Cargo Shipments Following Hurricanes Katrina and Rita
WASHINGTON — A former executive of a Peruvian airline pleaded guilty today for his role in a conspiracy to fix surcharges on air cargo shipments from the United States to South and Central America following Hurricanes Katrina and Rita, the Department of Justice announced.
George Gonzalez, former chief commercial officer of Cielos Airlines, a Peruvian air cargo carrier, pleaded guilty today in the Southern District of Florida to a one count charge of price fixing. On Oct. 28, 2010, Gonzalez and three other former airline executives were charged in Miami with conspiring to suppress and eliminate competition by agreeing to impose an increase to their fuel surcharges on air cargo shipped from the United States to locations in South and Central America. The indictment charged the executives with participating in the conspiracy beginning in or around late September 2005 until at least November 2005.
Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.
On Sept. 19, 2011, two of the other indicted former airline executives pleaded guilty to the charge. Guillermo “Willy” Cabeza, former president of Arrow Air, a Miami-based air cargo carrier, and Luis Juan Soto, former president of South Winds Cargo, a Miami-based air cargo carrier, pleaded guilty to the charge and are awaiting sentencing. In connection with their pleas, Gonzalez, Cabeza and Soto have each agreed to cooperate with the department in its investigation and to pay a criminal fine.
Gonzalez, Cabeza and Soto pleaded guilty to price fixing in violation of the Sherman Act, which carries a maximum $1 million fine and up to 10 years in prison. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
A total of 22 airlines and 21 executives, including Gonzalez, Cabeza and Soto, have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time.
Today’s guilty plea arose from an ongoing joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section and the Chicago Field Office, the FBI’s field offices in Miami and Washington, D.C., the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General.”
Sunday, May 15, 2011
FORMER AIR FRANCE EXECUTIVES INDICTED FOR CONSPIRACY
Price fixing is an activity that undermines a free and fair economy. The following case involves price fixing in the air cargo business. The following is from the Department of Justice web site:
" WASHINGTON — A Chicago grand jury returned an indictment today against two former executives of Paris-based Société Air France (Air France), for participating in a conspiracy to fix and coordinate surcharges on air cargo shipments to and from the United States and elsewhere and air cargo service rates to certain locations in the United States and elsewhere, the Department of Justice announced today. The indictment further alleges that the former executives along with co-conspirators also agreed to refuse to pay their customers commissions on surcharges for air cargo shipments to and from the United States and elsewhere.
The indictment, returned today in U.S. District Court in Chicago, charges Marc Boudier, former executive vice president of the cargo division of Air France, and Jean Charles Foucault, former vice president of the cargo division of sales and marketing of Air France, with conspiring with other air cargo carriers and their officials to suppress and restrain competition for international air cargo services. The department said that Boudier and Foucault carried out a conspiracy by fixing and coordinatingrates on air cargo shipments to certain U.S. locations and elsewhere and surcharges on air cargo shipments to and from the United States and elsewhere, and refusing to pay their customers commissions on surcharges for air cargo shipments to and from the United States and elsewhere. According to the indictment, Boudier and Foucault participated in the conspiracy from at least as early as August 2004 until at least February 2006.
Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.
According to the indictment, Boudier, Foucault and co-conspirators carried out the conspiracy by participating in or directing the participation of subordinate employees in meetings, conversations and communications to discuss rates for air cargo shipments to certain U.S. locations and elsewhere and surcharges for air cargo shipments to and from the United States and elsewhere. The department said, in accordance with the agreement and understanding reached by Boudier, Foucault and co-conspirators, they issued announcements of increases on surcharges and rates.
Boudier and Foucault are charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
A total of 21 airlines and 21 executives, including Boudier and Foucault, have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against the remaining 17 executives, including Boudier and Foucault.
Today’s charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section and Cleveland Field Office, the FBI’s Atlanta and Washington Field Offices, the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General."
" WASHINGTON — A Chicago grand jury returned an indictment today against two former executives of Paris-based Société Air France (Air France), for participating in a conspiracy to fix and coordinate surcharges on air cargo shipments to and from the United States and elsewhere and air cargo service rates to certain locations in the United States and elsewhere, the Department of Justice announced today. The indictment further alleges that the former executives along with co-conspirators also agreed to refuse to pay their customers commissions on surcharges for air cargo shipments to and from the United States and elsewhere.
The indictment, returned today in U.S. District Court in Chicago, charges Marc Boudier, former executive vice president of the cargo division of Air France, and Jean Charles Foucault, former vice president of the cargo division of sales and marketing of Air France, with conspiring with other air cargo carriers and their officials to suppress and restrain competition for international air cargo services. The department said that Boudier and Foucault carried out a conspiracy by fixing and coordinatingrates on air cargo shipments to certain U.S. locations and elsewhere and surcharges on air cargo shipments to and from the United States and elsewhere, and refusing to pay their customers commissions on surcharges for air cargo shipments to and from the United States and elsewhere. According to the indictment, Boudier and Foucault participated in the conspiracy from at least as early as August 2004 until at least February 2006.
Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.
According to the indictment, Boudier, Foucault and co-conspirators carried out the conspiracy by participating in or directing the participation of subordinate employees in meetings, conversations and communications to discuss rates for air cargo shipments to certain U.S. locations and elsewhere and surcharges for air cargo shipments to and from the United States and elsewhere. The department said, in accordance with the agreement and understanding reached by Boudier, Foucault and co-conspirators, they issued announcements of increases on surcharges and rates.
Boudier and Foucault are charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
A total of 21 airlines and 21 executives, including Boudier and Foucault, have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against the remaining 17 executives, including Boudier and Foucault.
Today’s charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section and Cleveland Field Office, the FBI’s Atlanta and Washington Field Offices, the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General."
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