IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
ALEXANDRIA DIVISION
UNITED STATES OF AMERICA
v.
DONALD M. KOTOWICZ,
Defendant.
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CRIMINAL NO. 95-414-A
VIOLATION: 15 U.S.C. § 1
(Bid Rigging)
FILED: [SEPTEMBER 27, 1995]
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INFORMATION
THE UNITED STATES CHARGES THAT:
1. From approximately September 1991 through approximately April 1995, in the
Eastern District of Virginia and elsewhere,
DONALD M. KOTOWICZ,
defendant herein, and others entered into and engaged in a combination and conspiracy to rig
bids at certain public real estate auctions in the Eastern District of Virginia.
2. The charged combination and conspiracy consisted of a continuing agreement,
understanding and concert of action among the defendant and co-conspirators, the substantial
terms of which were:
- to suppress competition by agreeing to refrain from full competitive bidding
against each other at certain public real estate auctions, and
- to conduct second, secret auctions at which the conspirators rebid the properties
they won at the public auctions, and divided among themselves the difference
between the public and secret auction prices.
The proceeds of the secret auctions were distributed as payoffs to the conspirators in return for
suppressing competition at certain public real estate auctions.
3. For the purpose of forming and carrying out the charged combination and
conspiracy, the defendant and co-conspirators did the following, among other things:
- designated, in various ways, a bidder to bid at the public auction for the group of
conspirators;
- held secret auctions, open only to members of the conspiracy, to rebid the property
won by the designated bidder at the public auction;
- awarded the property to the conspirator who submitted the highest bid at the secret
auction, and
- distributed the proceeds of the secret auction as payoffs based on a predetermined
formula agreed upon by the members of the conspiracy.
4. The business activities of the defendant and his co-conspirators that are the
subject of this Information were within the flow of, and substantially affected, interstate trade and
commerce.
(A violation of Title 15, United States Code, Section 1.)
HELEN F. FAHEY
UNITED STATES ATTORNEY
By: | _______________/s/________________
Justin W. Williams
Chief, Criminal Division |
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Anne K. Bingaman
Assistant Attorney General
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Gary R. Spratling
Deputy Assistant Attorney General
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Anthony V. Nanni
Chief, Litigation I Section
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James T. Clancy
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Joseph A. Capone
Trial Attorneys
Antitrust Division
United States Department of Justice
1401 H Street, N.W., Ste. 4000
Washington, DC 20530
202-307-5785
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