Former Shipping Executive Gets Fine, Prison Time for Freight Services Price Fixing
The Department of Justice announced Dec. 6 that the former president of a U.S. ocean freight carrier has been sentenced to serve five years in prison and pay a $25,000 criminal fine for his participation in a conspiracy to fix rates and surcharges for freight transported by water between the continental United States and Puerto Rico. The man pleaded guilty to conspiring with others to fix, stabilize and maintain those rates and surcharges, to allocate customers of Puerto Rico freight services between and among the conspirators and to rig bids submitted to customers of Puerto Rico freight services.
The DOJ states that as a result of its ongoing investigation into anticompetitive conduct in the coastal water freight transportation industry, the three largest carriers serving routes between the continental U.S. and Puerto Rico have pleaded guilty and been ordered to pay more than $46 million in criminal fines. In addition, a total of six individuals have been ordered to serve prison sentences ranging from seven months to five years.