CA Aftermarket Auto Lights Distributor Pleads Guilty to Price-Fixing
On August 30, 2011, the Justice Department announced that Sabry Lee Inc., a California aftermarket auto lights distributor for a Taiwan producer, has agreed to plead guilty for its participation in a global conspiracy to fix the prices of aftermarket auto lights.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
(Aftermarket auto lights are incorporated into an automobile after its original sale, often as repairs following a collision or as accessories and upgrades.)
Sabry Lee Inc. Conspired with Others to Suppress Competition by Fixing Prices
According to the one-count felony charge, from about September 2003 until about September 2005, Sabry Lee, Inc. conspired with others to suppress and eliminate competition by fixing the prices of aftermarket auto lights. The participants in the conspiracy met and agreed to charge prices of aftermarket auto lights at certain predetermined levels.
According to the court documents, the participants issued price announcements and price lists in accordance with the agreements reached, and collected and exchanged information on prices and sales of aftermarket auto lights for the purpose of monitoring and enforcing adherence to the agreed-upon prices. The Justice Department stated that the conspirators met in Taiwan, the U.S. and elsewhere for their discussions.
Sabry Lee Inc. Agreed to Pay $200K Criminal Fine, First Corporation to be Charged
Under Sabry Lee Inc.’s plea agreement, which is subject to court approval, the company has agreed to pay a $200,000 criminal fine and to assist the Justice Department in its ongoing investigation into the aftermarket auto lights industry. Sabry Lee Inc. is the first corporation to be charged in connection with the Justice Department’s ongoing investigation.
Three Individuals Have also Been Charged in Related Cases
The Justice Department notes that three individuals have also been charged in related cases. Earlier in 2011, Polo Shu-Sheng Hsu, the former president and chief executive officer of a U.S. distributor of aftermarket auto lights, was sentenced to serve 180 days in prison and to pay a $25,000 criminal fine. Chien Chung Chen, aka Andrew Chen, the former executive vice president of Sabry Lee Inc., pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced in December 2011. Homy Hong-Ming Hsu, the vice chairman and second highest-ranking officer of a Taiwan manufacturer of aftermarket auto lights, was indicted in July 2011.
(See ITT's Online Archives or 03/23/11 and 02/09/11 news, 11032312 and 11020929, for BP summaries of Chien Chung Chen and Polo Shu-Sheng Hsu agreeing to plead guilty for their participation in global price-fixing conspiracies.
See ITT's Online Archives or 07/20/11 news, 11072014, for BP summary of Homy Hong-Ming Hsu being indicted for his participation in a global price-fixing conspiracy.)