TWO EXECUTIVES ACQUITTED IN DOJ INVESTIGATION IN MARINE HOSE INDUSTRY
On November 10, 2008, Val M. Northcutt, an executive at Manuli Rubber Industries SpA (“Manuli”) and Francesco Scaglia, , an Italian National employed as a product manager for marine hoses for Manuli’s factory, were each found not guilty by a twelve member jury sitting in the United States District Court for the Southern District of Florida.
On September 13, a Fort Lauderdale, Florida federal grand jury returned an indictment charging Mr. Northcutt and Mr. Scaglia with participating in a conspiracy to suppress and eliminate competition by rigging bids, fixing prices, and allocating market shares for sales of marine hose in the United States and abroad.
Marine hose is a flexible rubber hose used to transfer oil between tankers and storage facilities. The cartel manipulated prices for hundreds of millions of dollars worth of marine hose worldwide.
Michael S. Pasano, Paul A. Calli , and Marissel Descalzo, of the Miami office of Carlton Fields represented Mr. Northcutt. David O. Markus of Miami, Florida and David Gerger of Houston, Texas represented Mr. Scaglia.
On June 11, 2008, Peter Whittle and David Brammar, two executives of Dunlop, and Bryan Allison, who acted as an independent consultant to Dunlop, pled guilty for running a cartel in UK’s first criminal prosecution for rigging bids for the supply of marine hose and related equipment in the UK. Mr. Allison and Mr. Whittle were both sentenced to three years in prison while Mr. Brammar received a two and a half year sentence. Mr. Allison also had to pay a fine of £25,000.
On April 17, 2008, Charles J. Gillespie, a former executive of Italy based Manuli Rubbers Industries SpA, pled guilty to participating in a conspiracy to rig bids, fix prices, and allocate market shares of marine hose in the United States. Mr. Gillespie also agreed to serve 12 months and one day in jail and pay a criminal fine of $20,000.
Andre Barlow
(202) 589-1834
abarlow@dbmlawgroup.com
