DOJ Ices Arctic Glacier In Customer Allocation Plea Deal
A customer-allocation conspiracy has been put on ice by the U.S. Department of Justice in a plea deal reached in Cincinnati federal district court.
Arctic Glacier International, Inc., a packaged-ice company located in St. Paul, has agreed to plead guilty to violating the Sherman Act and to pay a $9 million fine for allocating customers in the Detroit area. Three former executives from the company have also pled guilty to charges related to the conspiracy, and Arctic Glacier has agreed to cooperate in the ongoing investigation.
This deal, along with the massive fine, underscores the perils and increasingly large penalties associated with antitrust violations. It also highlights the importance of seeking sound legal advice when undertaking joint business actions involving other companies. Maximum penalties for violations of the Sherman Antitrust Act can carry penalties of up to 10 years in jail, $1 million fines for individuals, and $100 million fines for corporations.
This investigation by the DOJ and the FBI has also frozen another company in its tracks for alleged participation in similar activities. Home City Ice Company pleaded guilty on June 17, 2008, to conspiring to allocate customers.
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