South Korea-based company Jier Shin Korea Co. Ltd., and its
president, Sang Joo Lee, have agreed to pay $2 million to the United States for
civil antitrust and False Claims Act violations for their involvement in a
bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military
bases in South Korea, the Department of Justice announced today.
The United States previously reached civil settlements
totaling over $205 million relating to the conspiracy with GS Caltex
Corporation, Hanjin Transportation Co. Ltd., Hyundai Oilbank Co. Ltd., SK
Energy Co. Ltd., and S-Oil Corporation.
As with the prior civil settlements, this settlement reflects the
important role of both Section 4A of the Clayton Act and the False Claims Act
to ensure that the United States is compensated when it is the victim of
anticompetitive conduct.
“Today’s settlement represents the final chapter of our
efforts to use Section 4A of the Clayton Act to ensure that the companies
involved in this conspiracy compensate American taxpayers for their
anticompetitive activity,” said Assistant Attorney General Makan Delrahim of
the Antitrust Division. “Together, these
are the largest Section 4A settlements in American history, and we will
continue to use this important enforcement tool when taxpayers are harmed by
cartels.”
“This is the sixth False Claims Act settlement arising from
the bid rigging of contracts to supply fuel to U.S. military bases in South
Korea,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will pursue and hold accountable those
who seek to defraud the American taxpayers, including those who conspire with
others to do so.”
“You will pay the price if you rig bids and especially if
you target our military bases while doing so,” said U.S. Attorney David M.
DeVillers for the Southern District of Ohio.
“Today’s settlement shows that we will not stop until we hold
accountable all responsible parties.”
The Department’s Antitrust Division today filed a civil
antitrust complaint in the U.S. District Court for the Southern District of
Ohio and, at the same time, filed a proposed settlement that, if approved by
the court, would resolve the lawsuit against Jier Shin Korea and Mr. Lee for
their anticompetitive conduct targeting the U.S. military in South Korea. The proposed settlement requires that Jier
Shin Korea and Mr. Lee pay $2 million to the United States to resolve the civil
antitrust violations. In addition, Jier
Shin Korea and Mr. Lee have agreed to continue to cooperate with the United
States’ civil investigations and to abide by an antitrust compliance program. The amount to be paid by Jier Shin Korea and
Mr. Lee reflects the value of their cooperation, limitations on their ability
to pay, and cost savings realized by avoiding extended litigation. The settlement further provides that the
United States, if it discovers any material misrepresentations in the financial
statements provided by Jier Shin Korea and Mr. Lee regarding their ability to
pay, may recover the full amount by which Jier Shin Korea or Mr. Lee
understated that ability.
The payment will also resolve civil claims that the United
States has under the False Claims Act against Jier Shin Korea and Mr. Lee for
making false statements to the government in connection with their agreement
not to compete. The Civil Division has
entered into a separate settlement agreement with Jier Shin Korea and Mr. Lee
to resolve these claims.
The civil settlement was handled by the Antitrust Division’s
Transportation, Energy, and Agriculture Section, by the Civil Division, and by
the Civil Fraud Section of the United States Attorney’s Office in the Southern
District of Ohio.
The United States’ civil investigation resulted from a
whistleblower lawsuit filed under the qui tam provisions of the False Claims
Act. Those provisions allow for private
parties to sue on behalf of the United States and to share in any recovery.
The proposed civil antitrust settlement, along with the
Antitrust Division’s competitive impact statement, will be published in the
Federal Register, as required by the Antitrust Procedures and Penalties
Act. Any person may submit written
comments concerning the proposed settlement within 60 days of its publication
to Robert Lepore, Chief, Transportation, Energy, and Agriculture Section,
Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite
8000, Washington, D.C. 20530. At the
conclusion of the 60-day comment period, the court may enter the civil
antitrust settlement upon a finding that it serves the public interest.
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