IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
UNITED STATES OF AMERICA,
Plaintiff,
v.
LINDELL HILLING,
Defendant.
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Criminal No.: 399-CR-065-R
Filed: 03/02/1999
Violation: 15 U.S.C. § 1
Chief Judge Buchmeyer
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INFORMATION
The United States of America, acting through its attorneys, charges:
I
DESCRIPTION OF THE OFFENSE
1. Lindell Hilling is hereby made a defendant on the charge stated below.
2. Beginning at least as early as January 1988 and continuing until
at least September 29, 1998, the exact dates being unknown to the United
States, the defendant and co-conspirators entered into and participated
in a combination and conspiracy to suppress and eliminate competition
by fixing the price of, allocating customers for, and the volume of,
choline chloride sold in the United States and elsewhere. The combination
and conspiracy engaged in by the defendant and co-conspirators was in
unreasonable restraint of interstate and foreign trade and commerce
in violation of Section 1 of the Sherman Act (15 U.S.C. § 1).
3. 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 and maintain prices and to coordinate price
increases for the sale of choline chloride in the United States and
elsewhere;
- to agree to allocate among the corporate conspirators the volume
of sales of choline chloride in the United States and elsewhere;
- to agree to allocate among the corporate conspirators customers of
choline chloride in the United States and elsewhere;
- 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 therefore.
4. 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
and elsewhere to discuss the prices and volume of choline chloride
sold in the United States and elsewhere;
- agreeing, during those meetings and conversations, to charge
prices at specified levels and otherwise to increase and maintain
prices of choline chloride sold in the United States and elsewhere;
- 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 and elsewhere;
- agreeing, during those meetings and conversations, to allocate
among the corporate conspirators customers of choline chloride in
the United States and elsewhere;
- agreeing, during those meetings and conversations, to divide
markets worldwide for choline chloride among the corporate
conspirators;
- agreeing, during those meetings and conversations, to restrict
choline chloride producing capacity among the corporate
conspirators;
- 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
therefore.
II
BACKGROUND
5. Choline chloride is a vitamin of the B-complex group. Choline chloride,
or 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
6. During the relevant period, Lindell Hilling was the President of
DuCoa, L.P., a United States joint venture between DuPont de Nemours and
Company (DuPont), a United States corporation with its principal place of business
in Wilmington, Delaware, and ConAgra, Inc., a United States corporation with its
principal place of business in Omaha, Nebraska. DuCoa, L.P.'s principal place of
business is in Highland, Illinios. DuCoa, L.P. manufactures choline chloride in
Highland, Illinois and is engaged in the sale of choline chloride throughout the
United States and elsewhere.
7. 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.
8. Wherever in this Information reference is made to any act, deed, or
transaction of a corporation, the allegation means that the corporation 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
9. During the period covered by this Information, the defendant and
co-conspirators sold and distributed a substantial quantity of choline chloride in a
continuous and uninterrupted flow of interstate and foreign trade and commerce to
customers located in states or countries other than the states or countries in which
the choline chloride was produced.
10. During the period covered by this Information, the activities of the
defendant and co-conspirators that are the subject of this Information were within
the flow of, and substantially affected, interstate and foreign trade and commerce.
V
JURISDICTION AND VENUE
11. The combination and conspiracy charged in this Information was
carried out, in part, within the Northern District of Texas within the five years
preceding the filing of this Information.
ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1.
Dated:
______________"/s/"_______________
JOEL I. KLEIN
Assistant Attorney General
______________"/s/"_______________
GARY R. SPRATLING
Deputy Assistant Attorney General
______________"/s/"_______________
JAMES M. GRIFFIN
Director of Criminal Enforcement
Antitrust Division
U.S. Department of Justice
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______________"/s/"_______________
ALAN A. PASON
Chief, Dallas Office
______________"/s/"_______________
GREGORY S. GLOFF
MITCHELL R. CHITWOOD
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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