Taiwan & U.S. Co Indicted for Price-Fixing in Aftermarket Auto Lights
The Justice Department has announced that a Taiwan aftermarket auto lights manufacturer, its U.S.-based subsidiary distributor, and its chairman have been indicted for participating in an international conspiracy to fix the prices of aftermarket auto lights.
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Mnfr, U.S. Subsidiary, & Exec Conspired to Fix Prices in U.S. and Elsewhere
The indictment charges that Eagle Eyes Traffic Industrial Co. Ltd. (Taiwan) participated in a conspiracy to fix the prices of aftermarket auto lights in the U.S. and elsewhere from about July 2001 to about September 2008. The indictment also charges Eagle Eyes’ highest-ranking officer, Chairman Yu-Chu Lin, and Eagle Eyes’ U.S. subsidiary, E-Lite Automotive Inc., for their participation in the conspiracy.
This indictment also supersedes a July 2011 indictment against the second-highest-ranking officer of Eagle Eyes, Vice Chairman Homy Hong-Ming Hsu. (See ITT's Online Archives 11072014 for summary of Hsu's July 2011 indictment.)
Conspirators Met in U.S. and Taiwan for Their Discussions
Eagle Eyes, E-Lite, Lin, Hsu and co-conspirators participated in a conspiracy in which the participants met and agreed to charge prices of aftermarket auto lights according to jointly determined formulas. The participants in that conspiracy issued list price announcements to customers in accordance with the jointly determined price structure, and collected and exchanged information on prices for the purpose of monitoring and enforcing adherence to the conspiracy. According to DOJ, the conspirators met in Taiwan and the U.S. for their discussions.
Four Companies, Four Individuals Charged in DOJ's Ongoing Investigation
Including Eagle Eyes, E-Lite, and Lin, four companies and four individuals have been charged to date in connection with the DOJ's ongoing investigation into the aftermarket auto lights industry.
On November 15, 2011, Maxzone Vehicle Lighting Corp., a U.S. distributor of aftermarket auto lights, was sentenced to pay a $43 million criminal fine for its participation in the conspiracy. In March 2011, Polo Shu-Sheng Hsu, the former president and CEO of Maxzone, was sentenced to serve 180 days in prison and to pay a $25,000 criminal fine for his role in the conspiracy. (See ITT's Online Archives 11091312 and 11072014 for summaries.)
On October 4, 2011, Sabry Lee (U.S.A.) Inc., a U.S. distributor of aftermarket auto lights was sentenced to pay a $200,000 criminal fine for its participation in the conspiracy. Chien Chung Chen, the former executive vice president of Sabry Lee, pleaded guilty for his participation in the conspiracy in June 2011 and is scheduled to be sentenced in July 2012. (See ITT's Online Archives 11091312 and 11083105 for summaries.)