On December 10, 2008, Misao Hioki, general manager of International Engineered Products, pled guilty to his role in a conspiracy to rig bids, fix prices and allocate market shares of marine hose in the United States. He also pled guilty for his role in another conspiracy to violate the Foreign Corrupt Practices Act (“FCPA”) by making corrupt payments to government officials in Latin America and elsewhere to obtain and retain business. He has agreed to serve two years in jail, pay a criminal fine of $80,000 and help in the Department of Justice’s (“DOJ”) investigation.

Although he is the ninth individual to be charged in this investigation, he is the first charged in the FCPA conspiracy. Both conspiracies took place from January 2004 to May 2007. 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.

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 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.

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