Corning International K.K. Plead Guilty $66.5M for Fixing Prices of Automotive Parts
Corning International K.K. Guilty $66.5M Fixing Prices (Corning International K.K.) has agreed to criminal fine for conspiring to fix prices, rig bids and allocate the market for ceramic substrates sold in the United States and elsewhere, and used in catalytic converters supplied to automobile manufacturers in the United States and elsewhere, the Justice Department announced today.
According to the felony charge filed today in U.S. District Court for the Eastern District of Michigan, Corning International K.K., based in Tokyo, conspired to fix prices, rig bids and allocate the market for ceramic substrates, from at least as early as July 1999 until on or about July 2011. The products were installed in automotive emissions control systems and supplied to automobile manufacturers including Ford Motor Company, General Motors LLC, Honda Motor Company Ltd., and certain of their subsidiaries, affiliates, and suppliers in the United States and elsewhere. Corning International K.K. agreed to cooperate in the department’s ongoing investigation. The plea agreement will be subject to court approval.
“Corning International K.K. – and Nobuhiko Niwa, its former executive, who was indicted last week – spent more than a decade colluding on sales of an important component of emissions systems for use in cars made and sold in the United States and elsewhere,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “But they have now been held accountable for the competitive harm they caused.”
“Corning International K.K.’s conspiracy to rig bids and fix prices brought the company increased revenues at a cost to auto manufacturers, suppliers, and ultimately, consumers,” said Special Agent in Charge David P. Gelios of the FBI’s Detroit Division. “Attempts to thwart the free market system are damaging to our economy, and thereby its consumers, and will be actively investigated and prosecuted.”
Including Corning International K.K., 40 companies have been charged in connection with this investigation and have agreed to pay more than $2.7 billion in criminal fines. In addition, 59 individuals have been charged, including a former executive of Corning International K.K. On May 11, 2016, a federal grand jury in the Eastern District of Michigan returned an indictment against Nobuhiko Niwa, a Japanese national, for his role in the conspiracy. Niwa was charged with participating in the conspiracy from at least as early as July 1999 until on or about July 2011.
This charge results from an ongoing investigation conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Division with the assistance of the FBI Headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Corning Japanese Unit Pleads Guilty in U.S. Car-Parts Probe
By Maria Armental
Corning Inc.’s Japanese unit has agreed to plead guilty to conspiring to fix prices and pay a fine of $66.5 million, as part of a long-running, industry-wide federal crackdown on the auto-parts industry. Under the settlement, subject to court approval, Corning admitted to the civil violation, saying a former employee ” acted secretly and alone” in fixing the market for ceramic substrates, used in catalytic converters for cars sold in the U.S. by Ford Motor Co., General Motors Co. and Honda Motor Co. The Justice Department’s auto-parts probe has focused on price-fixing in an array of products, from instrument panels to air bags and steering wheels. To date, the U.S. investigation has produced more than $2.6 billion in criminal fines.
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires 05-16-161528ET Copyright (c) 2016 Dow Jones & Company, Inc.
Corning International, Kabushiki Kaisha, a Japanese subsidiary of Corning Incorporated, announced that it has reached a definitive agreement with the U.S. Department of Justice to resolve an investigation into the pricing of certain automotive products. Under the resolution, CIKK will plead guilty to a single antitrust violation; admit that, acting through a single former CIKK employee, it engaged in a conspiracy to fix prices and rig bids for ceramic substrates sold to a Japanese automotive company; and pay a fine of $66.5M (equivalent of JPY 7.2B). This former CIKK employee acted secretly and alone, and he was indicted by the DOJ on May 11. The DOJ has agreed that it will not pursue further criminal prosecution of CIKK for any conduct involving the sales of such automotive products. Corning did not engage in any illegal activities, and the DOJ has agreed not to prosecute Corning. CIKK’s agreement with the DOJ will be submitted to the U.S. District Court for the Eastern District of Michigan for approval. CIKK and Corning have cooperated with the DOJ investigation since it was brought to the companies’ attention by the DOJ in March 2012.
Read more at: http://thefly.com/landingPageNews.php?id=2375803
Corning International K.K. operates as a subsidiary of Corning Inc.
Akasaka Intercity: 7th floor
Minato-ku Tokyo, 107-0052 Japan
Phone: 81 3 3586 5002
Fax: 81 3 3224 1405
Key Executives for Corning International K.K.
Corning International K.K. does not have any Key Executives recorded.
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