frozo
10-01-06, 08:29 AM
What do J.A. Jones, Harbert, and American International Contractors (AICI) have in common?
They were caught bid-rigging on an USAID contract.
Enjoy the read:
Link: http://www.usdoj.gov/atr/cases/f7100/7112.htm
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ALABAMA
SOUTHERN DIVISION
___________________________________
)
UNITED STATES OF AMERICA )
) Criminal No. CR-00-N-0298-S
v. )
) Filed: 9/6/00 Under Seal; Seal Lifted
AMERICAN INTERNATIONAL ) 9/7/00
CONTRACTORS, INC., )
) Violation: 15 U.S.C. § 1
Defendant. )
___________________________________ )
STATUTE VIOLATED
A. The Sherman Act
The Information charges AICI with one count of bid rigging in violation of
the Sherman Act, 15 U.S.C. § 1. Section One of Title 15, United States Code,
provides:
Every contract, combination in the form of trust or otherwise, or
conspiracy, in restraint of trade or commerce among the several
States, or with foreign nations, is declared to be illegal. Every
person who shall make any contract or engage in any
combination or conspiracy hereby declared illegal shall be
deemed guilty of a felony, and, on conviction thereof, shall be
punished by a fine not exceeding $10,000,000 if a corporation,
or, if any other person, $350,000, or by imprisonment not
exceeding three years, or by both said punishments, in the
discretion of the court.
The Information charges that beginning at least as early as June 1988 and
continuing until at least January 1995, AICI and others entered into and engaged
in a conspiracy to suppress and eliminate competition by rigging the bids on certain
wastewater construction contracts funded by the United States Agency for
International Development (“USAID”) and performed in the Arab Republic of
Egypt.
3
B. Elements of the Offense
The elements of a Sherman Act offense, each of which the United States must
prove beyond a reasonable doubt, are:
(1) the conspiracy charged was formed, and it was in existence at or about
the time alleged;
(2) the defendant knowingly formed or participated in that conspiracy;
and
(3) the activity that was the object of the conspiracy was within the flow
of, or substantially affected, interstate or foreign commerce.
C. Maximum Penalty
The maximum penalty AICI may receive upon its conviction in this case is a
fine in an amount equal to the largest of: (a) ten million dollars; (b) twice the gross
pecuniary gain derived from the crime; or (c) twice the gross pecuniary loss caused
to the victims of the crime.
II
FACTUAL BASIS
This statement of facts is intended to be used as a factual basis for the guilty
plea of AICI. It is not intended to present all details surrounding the charged
conspiracy.
4
A. Background
As a result of the Camp David Peace Accords in the late 1970s, the United
States and other Western countries committed to fund extensive rehabilitation
work on the water treatment and disposal facilities in the Arab Republic of Egypt.
Pursuant to this commitment, USAID, an agency of the United States government,
funded nearly $1 billion in work by U.S. construction companies during the 1980s
and early 1990s. The USAID-funded contracts were awarded to prequalified
United States contractors on the basis of competitive sealed bids. AICI’s conduct in
this case affected Contract 20A, a $107 million contract awarded to a joint venture
between two United States contractors: Harbert International, Inc. and J.A. Jones
Construction Company (“Harbert-Jones”). Harbert International, Inc. is based in
Birmingham, Alabama, and the joint venture operated out of and received
payments into Harbert’s Birmingham offices.
B. The Conspiracy
Beginning at least as early as June 1988 and continuing until at least
January 1995, several competitors for the USAID-funded contracts in Egypt
entered into and participated in a combination and conspiracy to suppress and
eliminate competition by rigging the bids on certain of these USAID-funded
contracts.
The conspiracy consisted of a continuing agreement, understanding, and
concert of action among the conspirators to rig the bids on certain USAID-funded
5
contracts to ensure that the Harbert-Jones joint venture won those contracts. In
particular, AICI and its parent company participated in an agreement to rig the
bids on Contract 20A, which ultimately was awarded to the Harbert-Jones joint
venture. AICI and its parent company agreed that AICI would protect Harbert-
Jones’ bid by not bidding on Contract 20A in exchange for payment of $3 million
from Philipp Holzmann AG, J.A. Jones’ parent company.
For the purpose of forming and carrying out the charged combination and
conspiracy, AICI and other co-conspirators did those things that they combined and
conspired to do, ...
They were caught bid-rigging on an USAID contract.
Enjoy the read:
Link: http://www.usdoj.gov/atr/cases/f7100/7112.htm
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ALABAMA
SOUTHERN DIVISION
___________________________________
)
UNITED STATES OF AMERICA )
) Criminal No. CR-00-N-0298-S
v. )
) Filed: 9/6/00 Under Seal; Seal Lifted
AMERICAN INTERNATIONAL ) 9/7/00
CONTRACTORS, INC., )
) Violation: 15 U.S.C. § 1
Defendant. )
___________________________________ )
STATUTE VIOLATED
A. The Sherman Act
The Information charges AICI with one count of bid rigging in violation of
the Sherman Act, 15 U.S.C. § 1. Section One of Title 15, United States Code,
provides:
Every contract, combination in the form of trust or otherwise, or
conspiracy, in restraint of trade or commerce among the several
States, or with foreign nations, is declared to be illegal. Every
person who shall make any contract or engage in any
combination or conspiracy hereby declared illegal shall be
deemed guilty of a felony, and, on conviction thereof, shall be
punished by a fine not exceeding $10,000,000 if a corporation,
or, if any other person, $350,000, or by imprisonment not
exceeding three years, or by both said punishments, in the
discretion of the court.
The Information charges that beginning at least as early as June 1988 and
continuing until at least January 1995, AICI and others entered into and engaged
in a conspiracy to suppress and eliminate competition by rigging the bids on certain
wastewater construction contracts funded by the United States Agency for
International Development (“USAID”) and performed in the Arab Republic of
Egypt.
3
B. Elements of the Offense
The elements of a Sherman Act offense, each of which the United States must
prove beyond a reasonable doubt, are:
(1) the conspiracy charged was formed, and it was in existence at or about
the time alleged;
(2) the defendant knowingly formed or participated in that conspiracy;
and
(3) the activity that was the object of the conspiracy was within the flow
of, or substantially affected, interstate or foreign commerce.
C. Maximum Penalty
The maximum penalty AICI may receive upon its conviction in this case is a
fine in an amount equal to the largest of: (a) ten million dollars; (b) twice the gross
pecuniary gain derived from the crime; or (c) twice the gross pecuniary loss caused
to the victims of the crime.
II
FACTUAL BASIS
This statement of facts is intended to be used as a factual basis for the guilty
plea of AICI. It is not intended to present all details surrounding the charged
conspiracy.
4
A. Background
As a result of the Camp David Peace Accords in the late 1970s, the United
States and other Western countries committed to fund extensive rehabilitation
work on the water treatment and disposal facilities in the Arab Republic of Egypt.
Pursuant to this commitment, USAID, an agency of the United States government,
funded nearly $1 billion in work by U.S. construction companies during the 1980s
and early 1990s. The USAID-funded contracts were awarded to prequalified
United States contractors on the basis of competitive sealed bids. AICI’s conduct in
this case affected Contract 20A, a $107 million contract awarded to a joint venture
between two United States contractors: Harbert International, Inc. and J.A. Jones
Construction Company (“Harbert-Jones”). Harbert International, Inc. is based in
Birmingham, Alabama, and the joint venture operated out of and received
payments into Harbert’s Birmingham offices.
B. The Conspiracy
Beginning at least as early as June 1988 and continuing until at least
January 1995, several competitors for the USAID-funded contracts in Egypt
entered into and participated in a combination and conspiracy to suppress and
eliminate competition by rigging the bids on certain of these USAID-funded
contracts.
The conspiracy consisted of a continuing agreement, understanding, and
concert of action among the conspirators to rig the bids on certain USAID-funded
5
contracts to ensure that the Harbert-Jones joint venture won those contracts. In
particular, AICI and its parent company participated in an agreement to rig the
bids on Contract 20A, which ultimately was awarded to the Harbert-Jones joint
venture. AICI and its parent company agreed that AICI would protect Harbert-
Jones’ bid by not bidding on Contract 20A in exchange for payment of $3 million
from Philipp Holzmann AG, J.A. Jones’ parent company.
For the purpose of forming and carrying out the charged combination and
conspiracy, AICI and other co-conspirators did those things that they combined and
conspired to do, ...