Three imprisoned in first OFT criminal prosecution for bid rigging

Three imprisoned in first OFT criminal prosecution for bid rigging

LONDON. June 11, 2008/3mnewswire.org/-- Three UK businessmen were today sentenced to imprisonment for between two and a half to three years for cartel offences. All three were also disqualified from acting as company directors for periods of between five and seven years. These are the first ever convictions for a cartel offence since criminal prosecution powers were given to the OFT under the Enterprise Act.

Peter Whittle, David Brammar and Bryan Allison pleaded guilty at Southwark Crown Court to dishonestly participating in a cartel to allocate markets and customers, restrict supplies, fix prices and rig bids for the supply of marine hose and ancillary equipment in the UK. Marine hose is used by the oil and defence industries for transporting oil between tankers and storage facilities.

Allison and Brammar were respectively the Managing Director and Sales Director of Dunlop Oil and Marine Limited, a manufacturer of marine hose based in Grimsby. Whittle traded as an independent consultant but in practice was employed full-time by the parties to the cartel to co-ordinate their activities around the world.

Officers of the OFT executed search warrants at Dunlop's offices and Whittle's home in May 2007 and seized extensive and compelling evidence of the cartel arrangements. At the same time, in an operation coordinated between the OFT and the US Department of Justice, the defendants were arrested in Houston, Texas, where a cartel meeting had taken place the previous day and was covertly recorded by the US authorities. A number of other suspects were also arrested by US authorities.

Whittle, Brammar and Allison were allowed to return to the UK and face charges as part of a plea agreement with the US DoJ. They returned to the UK in December 2007 and were arrested at Heathrow Airport by the Metropolitan Police.

The charges relate to the period between 20 June 2003, when the cartel offence came into force under the Enterprise Act, and 2 May 2007 when the men were arrested in the United States and the cartel arrangements brought to an end. The cartel was global in its scope and involved all the major manufacturers of marine hose worldwide.

John Fingleton, OFT Chief Executive said :

'This was a highly sophisticated and well-organised cartel, involving all the major manufacturers of marine hose worldwide over many years, where the cartel members secretly employed a full-time coordinator to allocate contracts and fix prices.

'This first criminal prosecution sends a clear message to individuals and companies about the seriousness with which UK law views cartel behaviour. The OFT will continue to investigate and prosecute cartels vigorously, with the aim of ensuring strong competition within the UK economy.'

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