The first team I can remember rooting for was the 1962 Mets. They went 40–120 (.250) and finished last in the National League, 60 1⁄2 games behind the NL Champion San Francisco Giants. The statistics for criminal cases filed by the Antitrust Division for the 2018 Fiscal Year that closed on September 30, 2018 were pretty close to being that bad. There were 14 case filings naming 18 defendants; 8 of the cases were real estate foreclosure auctions. By contrast, a high water mark was FY 2011 when 90 cases were filed against 109 Defendants.
Before anyone thinks, “Well it’s the Republicans” or somehow Makan Delrahim isn’t doing a good job, recall that the 1962 Mets were skippered by Casey Stengel—a Hall of Fame manager. Stengel’s Yankees won the World Series five consecutive times (1949–1953). Stengel remarked about the 1962 Mets “Can’t anyone here play this game?” Delrahim may have quipped: “Didn’t they (the prior administration) leave me any cases in the pipeline?” The investigation period for a criminal antitrust case is lengthy. To a large extent, a new administration is bringing charges stemming from investigations that began under the previous administration. So, don’t shoot the current Sheriff.
The next Cartel Capers post will explore some of the reasons the Antitrust Division’s case have tailed off so dramatically. Also, I’d like to talk about some ways to get the pipeline full again (perhaps it is but its not yet apparent). I welcome any reader comments about why case filings–particularly international cartel cases– may be down (other than it’s a cyclical business and auto parts and financial crime cases ran their course). Are there ideas out there about what the Antitrust Division could be doing to generate a more robust criminal enforcement program?
Below are my very unofficial statistics for Antitrust Division criminal case filings for Fiscal 2018. I have not compiled fines, but I believe the only “substantial fine” is the $90 million imposed on BP Paribas in a currency manipulation case.
PS. I was a Casey Stengel fan even later in life. When I was Chief of the Antitrust Division’s Philadelphia Field Office I always followed Casey’s advice on being a successful manager: “The secret of successful managing is to keep the five guys who hate you away from the four guys who haven’t made up their minds.” And, like Casey, I was eventually canned; when my office got whacked in 2013.
Antitrust Division Fiscal 2018 Cases (unofficial)
Criminal Cases Filed: 14
Indictments: 6
Informations: 8
Total Defendants: 18
Corporate Defendants: 3
Individuals: 15
Cases by Subject Matter
Foreclosure auction -8
Seafood -1
Financial services – 2
Construction -2
Capacitors -1
1) August 20, 2018 U.S. v. Detloff Marketing and Asset Management, Inc. et al. District of Minnesota
https://www.justice.gov/atr/case/us-v-detloff-marketing-and-asset-management-inc-et-al; press release at:
2) June 8, 2018 U.S. v. Ivan Spinner Mississippi, Southern District
https://www.justice.gov/atr/case/us-v-ivan-spinner (real estate foreclosure auctions)(SD Miss.)(no press release)
3) May 16, 2018 U.S. v. Christopher Lischewski California, Northern District
https://www.justice.gov/atr/case/us-v-christopher-lischewski; (ND. Cal.)press release: https://www.justice.gov/opa/pr/bumble-bee-ceo-indicted-price-fixing
4) May 10, 2018 U.S. v. Akshay Aiyer New York, Southern District
https://www.justice.gov/atr/case/us-v-akshay-aiyer(currency exchange, S.D. NY);press release:
https://www.justice.gov/opa/pr/former-currency-trader-indicted-participating-antitrust-conspiracy
5) April 10, 2018 U.S. v. Chad Nichols Mississippi, Southern District
https://www.justice.gov/atr/case/us-v-chad-nichols (real estate foreclosure auction bid rigging)(SD Mississippi)(no press release)
6) April 3, 2018 U.S. v. Kevin Moore Mississippi, Southern District
https://www.justice.gov/atr/case/us-v-kevin-moore (real estate foreclosure auction bid rigging)(no press release)
7) April 3, 2018 U.S. v. Terry Tolar Mississippi, Southern District
https://www.justice.gov/atr/case/us-terry-tolar (real estate foreclosure auctions bid rigging) (no press release)
8) February 1, 2018 U.S. v. Jason Boykin Mississippi, Southern District
https://www.justice.gov/atr/case/us-v-jason-boykin (real estate foreclosure bid rigging) (no press release)
9) Feb 1, 2018 U.S. v. Shannon Boykin Mississippi, Southern District
https://www.justice.gov/atr/case/us-v-shannon-boykin (real estate foreclosure bid rigging) (no press release)
10) January 25, 2018 U.S. v. BNP Paribas USA, INC. New York, Southern District ($90 million fine)
https://www.justice.gov/atr/case/us-v-bnp-paribas-usa-inc (price fixing currencies)(no press release)
11) November 2, 2017 U.S. v Avi Stern, Stuart Hankin, Christopher Graeve Florida, Southern District
https://www.justice.gov/opa/press-release/file/1008621/download(copy of Indictment); press release:
12) October 19, 2017 U.S. v. Kenneth Keyes and Leroy Weber
California, Eastern District
https://www.justice.gov/atr/case/us-v-kenneth-keyes-and-leroy-weber (Conspiracy to Defraud United States—commercial construction); press release; https://www.justice.gov/opa/pr/roofing-company-owner-and-former-facilities-manager-sierra-army-depot-indicted-conspiracy
13) October 18, 2017 U.S. v. Nippon Chemi-Con Corporation
California, Northern District
https://www.justice.gov/atr/case/us-v-nippon-chemi-con-corporation (capacitor price fixing), press release https://www.justice.gov/opa/pr/leading-electrolytic-capacitor-manufacturer-indicted-price-fixing
There is a sentencing hearing for Nippon Chemi-Con on October 3, 2018. The plea agreement calls for a fine of between $40 and $60 million. NCC may withdraw its plea if the Judge imposes a fine greater than that called for by the plea agreement. See Cartel Capers: https://cartelcapers.com/blog/will-antitrust-division-need-compliance-monitor/
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14* October 19, 2017 U.S. v. Yama Marifat [2018] E.D. Cal
Case No. 2:17-cr-00189
[This is an unusual case. The original Information was filed in 2011. The defendant pled guilty but later successfully withdrew his guilty plea. The Antitrust Division subsequently indicted him in 2017. I counted this Indictment in the statistics, though it was already counted in 2011.]
https://www.justice.gov/atr/case-document/file/502276/download (1/28/2011); press release
https://www.justice.gov/opa/pr/real-estate-investor-indicted-bid-rigging-eastern-district-california