IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
UNITED STATES OF AMERICA,
v.
DANIEL T. ROSE,
Defendant.
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Criminal No. 3-03CR-189-D
Filed: JUN-4 2003
Violation: 15 U.S.C. § 1
Judge
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INDICTMENT
The Grand Jury charges:
I
DESCRIPTION OF THE OFFENSE
- Daniel T. Rose is hereby made a defendant on the charge stated below.
- In or about August, 1997 and continuing until at least September
29, 1998, the exact dates being unknown to the Grand Jury, the defendant
entered into and participated in a combination and conspiracy to suppress
and eliminate competition by fixing the price, rigging bids, and allocating
customers for choline chloride sold in the United States. The combination
and conspiracy engaged in by the defendant and co-conspirators was
in unreasonable restraint of interstate trade and commerce in violation
of Section 1 of the Sherman Act (15 U.S.C. § 1).
- 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 agree to fix, increase, and maintain prices and to coordinate
price increases for the sale of choline chloride in the United States;
- to agree to allocate among the corporate conspirators the volume
of sales of choline chloride in the United States;
- to agree to allocate among the corporate conspirators customers
of choline chloride in the United States;
- to allocate among the corporate conspirators all or part of certain
contracts to supply choline chloride to various customers located
throughout the United States;
- to refrain from submitting bids, or to submit collusive, non-competitive,
and rigged bids to supply choline chloride to various customers located
in the United States; and
- to supply choline chloride to various customers located throughout
the United States at non-competitive prices and receive compensation
therefor.
- For the purpose of forming and carrying out the charged combination
and conspiracy, the defendant and co-conspirators did those things
that they combined and conspired to do, including, among other things:
- participating in meetings and conversations in the United States
to discuss the prices and volume of choline chloride sold in the
United States;
- agreeing, during those meetings and conversations, to charge
prices at specified levels and otherwise to fix, increase, and
maintain prices of choline chloride sold in the United States;
- agreeing, during those meetings and conversations, to allocate
among the corporate conspirators the approximate volume of choline
chloride to be sold by each corporate conspirator in the United
States;
- agreeing, during those meetings and conversations, to allocate
among the corporate conspirators customers of choline chloride
in the United States;
- exchanging sales and customer information for the purpose of
monitoring and enforcing adherence to the above-described agreement;
- issuing price announcements and price quotations in accordance
with the agreements reached;
- discussing among co-conspirators the submission of prospective
bids to supply choline chloride to customers located throughout
the United States;
- designating which corporate conspirator would be the designated
low bidder for contracts to supply choline chloride to customers
located throughout the United States;
- discussing and agreeing upon prices to be contained within
the bids for contracts to supply choline chloride to customers
in the United States;
- refraining from bidding or submitting intentionally high, complementary
bids for the contracts to supply choline chloride to customers
in the United States; and
- supplying choline chloride to various customers in the United
States at non-competitive prices and receiving compensation therefor.
II
BACKGROUND
- Choline chloride is a vitamin of the B-complex group. Choline chloride,
also known as vitamin B4, is sold by manufacturers and resellers to
customers in the animal nutrition industry. Choline chloride is an ingredient
necessary for the proper growth and development of animals.
III
DEFENDANT AND CO-CONSPIRATORS
- Beginning as early as August, 1997, Daniel T. Rose was employed
as the President of DuCoa, L.P., a limited partnership existing under
the laws of Delaware with its principal place of business in Highland,
Illinois. DuCoa, L.P. was engaged in the manufacture and sale of choline
chloride to customers in the United States and elsewhere. In his role
as President of DuCoa, L.P., Daniel T. Rose was engaged in the manufacture
and sale of choline chloride to customers in the United States and elsewhere.
- Various corporations and individuals not made defendants herein
participated as co-conspirators in the offense charged herein and
performed acts and made statements in furtherance thereof.
- Wherever in this Indictment reference is made to any act, deed,
or transaction of a corporation or other business entity, the allegation
means that the corporation or other business entity engaged in the
act, deed, or transaction by or through its officers, directors, agents,
employees, or representatives while they were actively engaged in
the management, direction, control, or transaction of its business
or affairs.
IV
TRADE AND COMMERCE
- During the period covered by this Indictment, the defendant and
co-conspirators sold and distributed a substantial quantity of choline
chloride in a continuous and uninterrupted flow of interstate commerce
to customers located in states other than the states in which the
choline chloride was produced.
- During the period covered by this Indictment, the activities of
the defendant and co-conspirators that are the subject of this Indictment
were within the flow of, and substantially affected, interstate trade
and commerce.
V
JURISDICTION AND VENUE
- The combination and conspiracy charged in this Indictment was carried
out, in part, within the Northern District of Texas within the five
years preceding the filing of this Indictment.
ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1.
DATED this 4 day of June, 2003.
A TRUE BILL
_______________/s/________________
FOREPERSON |
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_______________/s/________________
R. HEWITT PATE
Acting Assistant Attorney General
_______________/s/________________
James M. GRIFFIN
Deputy Assistant Attorney General
_______________/s/________________
SCOTT D. HAMMOND
Director of Criminal Enforcement
Antitrust Division
U.S. Department of Justice
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_______________/s/________________
DUNCAN S. CURRIE
Chief, Dallas Field Office
Antitrust Division
_______________/s/________________
DAVID B. SHAPIRO
A. JENNIFER BRAY
JUAN G. RODRIGUEZ
Attorneys, Antitrust Division
U.S. Department of Justice
Dallas Field Office
Thanksgiving Tower
1601 Elm Street, Suite 4950
Dallas, Texas 75201-4717
Tel.: (214) 880-9401
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