On February 6, 2008, Ohio-based Alliance National Limited Partnership, which does business as DeMilta Iron & Metal Ltd. (“DeMilta Iron”), and its owner, Francis DeMilta, were indicted by a federal grand jury for conspiring to allocate scrap metal suppliers in Northeast Ohio.
The indictment charges Mr. DeMilta and the company with participating in a conspiracy to restrain competition by allocating scrap metal suppliers. Scrap metal suppliers sell scrap to scrap metal processors such as DeMilta Iron. The alleged conspiracy took place from at least as early as August 1997 and continued to at least March 2003. The indictment also charges that DeMilta Iron’s vice president, Ronald Vaughn made false statements when he testified before a federal grand jury, and obstructed justice.
The indictment demonstrates the Antitrust Division’s resolve to prosecute owners and company for illegally allocating suppliers. To date, seven individuals and six companies have been convicted as a result of the ongoing antitrust investigation into the scrap metal industry. Criminal fines and restitution totaling more than $15.5 million have been imposed thus far as the result of this investigation.