On December 1, 2008, Dunlop Oil & Marine Ltd (“Dunlop”), located in Grimsby, England, pled guilty to rigging bids, fixing prices and allocating market shares of marine hose sold in the United States. Dunlop also agreed to pay a $4.54 million criminal fine and cooperate with the DOJ’s ongoing antitrust investigation.

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.

Dunlop is the second company charged in this investigation. On June 28, 2008, Manuli Rubber Industries SpA (“Manuli”), an Italian marine hose manufacturer, and Robert L. Furness, the former president of Manuli’s subsidiary Plantation, pled guilty for their role in a worldwide conspiracy to rig bids, fix prices, and allocate market share in the marine hose industry.

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. Since May 2007, there have been eight other foreign executives arrested in Houston and San Francisco and charged for their role in the marine hose cartel.

Andre Barlow
(202) 589-1834
abarlow@dbmlawgroup.com