May 2008 :: Antitrust Lawyer Blog
Squeezed On: May 30, 2008

ANOTHER PECK & HALE, LLC EXECUTIVE PLEADS GUILTY TO CHARGES OF BID RIGGING AND TAKING KICKBACKS ON DOD CONTRACTS

On May 30, 2008, as a part of their ongoing investigation into the military restraints industry, the DOJ reached a plea agreement with Wilson Freire, a former government contracts manager at Peck & Hale LLC. Mr. Freire pled guilty to two separate conspiracies of bid rigging and taking kickbacks on contracts taken in connection with various equipment sold to the U.S. Department of Defense (“DOD”).

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Squeezed On: May 29, 2008

FORMER EMPLOYEE CHARGED WITH DEFRAUDING HOME DEPOT IN VENDOR KICKBACK SCHEME AND TAX EVASION

On May 29, 2008, Anthony M. Tesvich, a former employee of Home Depot, was charged with three counts of tax evasion and one count of conspiracy to commit wire fraud.

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Squeezed On: May 28, 2008

DOJ ALLOWS CENGAGE TO ACQUIRE HM COLLEGE

On May 28, 2008, the Department of Justice blocked a proposed $750 million acquisition of Houghton Mifflin Harcourt Publishing Company's College Division (“HM College”) by Cengage Learning, Inc (“Cengage”). The DOJ required the divestiture of Cengage’s assets related to the textbooks and education materials of 14 of its college level courses. The textbooks ranged from topics on foreign languages to business.

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Squeezed On: May 27, 2008

DOJ SETTLES WITH NATIONAL REALTORS ASSOCIATION

On May 27, 2008, the Department of Justice (“DOJ”) reached a settlement with the National Realtors Association (“NAR”) that requires NAR to allow internet-based real estate brokers to compete with traditional real estate brokers. NAR is a trade association of 1.2 million real estate members.

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Squeezed On: May 16, 2008

U.S COURT OF APPEALS FOR THE FIFTH CIRCUIT AFFIRMS FTC DECISION THAT THE NORTH TEXAS SPECIALTY PHYSICIANS ENGAGED IN ANTICOMPETITIVE PRACTICES

On May 16, 2008, in a unanimous opinion, the U.S. Court of Appeals for the Fifth Circuit affirmed a 2006 Federal Trade Commission (“FTC”) decision that found the North Texas Specialty Physicians (“NTSP”), based in Fort Worth, TX, participated in horizontal price fixing activities.

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Squeezed On: May 15, 2008

TWO INDIVIDUALS CHARGED WITH CONSPIRING TO COMMIT BRIBERY IN CONNECTION WITH A U.S. ARMY CORPS OF ENGINEERS NEW ORLEANS LEVEE RECONSTRUCTION PROJECT

On May 15, 2008, Durwanda Elizabeth Morgan Heinrich, a dirt, sand, and gravel subcontractor, and Kern Carver Bernard Wilson, a former contract employee of the U.S. Army Corps of Engineers, were each charged with one count of conspiring to commit bribery. Additionally, Heinrich was charged with two counts of offering a bribe to a public official and Wilson was charged with one count of demanding and agreeing to accept a bribe as a public official.

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Squeezed On: May 8, 2008

FIRST FORMER AIRLINE EXECUTIVE PLEADS GUILTY TO

On May 8, 2008, Bruce McCaffrey, Quantas Airways’ Vice President of Freight for the Americas, pled guilty and agreed to serve eight months in jail as well as pay a criminal fine of $20,000 for his role in a conspiracy to fix rates for international cargo shipments.

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Squeezed On: May 6, 2008

FTC MODIFIES ORDER PROHIBITING NINE WEST GROUP, INC. FROM FIXING RETAIL PRICES WITH DEALERS

On May 6, 2008 the Federal Trade Commission (“FTC”) modified its previous order in 2000 prohibiting Nine West Group, Inc. from fixing retail prices with dealers. The FTC modified the order by granting Nine West permission to engage in resale price maintenance (RPM) with a caveat that the company would have to provide periodic reports detailing the effects of these agreements on competition in the industry.

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Squeezed On: May 5, 2008

FTC ENTERS INTO SETTLEMENT AGREEMENT IN A MERGER WITHOUT A SECOND REQUEST

On May 5, 2008, in 4-0 vote, the Federal Trade Commission (“FTC”) entered into a settlement agreement that allowed Agrium, Inc. to buy UAP Holding Corporation (“UAP”) for $2.5 billion, making UAP a wholly owned subsidiary of Agrium.

Agrium is required to sell five UAP farm stores in Michigan and two Agrium stores in Maryland and Virginia within 180 days of the acquisition. The order requires the divestiture of Agrium’s store in Keller, VA, and that it is sold as a unit with Agrium’s Pocomoke/Girdletree, Maryland store, because the store in Virginia supplies the store in the Maryland region. The order also contains an Order to Hold Separate and Maintain Assets that requires the companies to maintain the assets to be divested pending their sale and provides for the appointment of an interim monitor to oversee the assets to be sold in the relevant markets.

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Squeezed On: May 2, 2008

DOJ FILES LAWSUIT AGAINST CONSOLIDATED MULTIPLE LISTING SERVICES CHARGING THAT ITS RULES ARE ANTICOMPETITIVE

On May 2, 2008, the Department of Justice (“DOJ”) filed a civil antitrust lawsuit against the Consolidated Multiple Listing Services (“CMLS”) of Columbia, SC. The lawsuit, filed at the U.S. District Court in Columbia, SC, alleges that the CMLS’s rules regarding who can be a member and how those brokers must conduct their business stifles competition. These rules prevent local real estate brokers as well as rival brokers from outside of Columbia from providing innovative options that would provide better services to consumers.

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