2 Cargolux Execs to Serve 13 Months for Fixing Int'l Air Cargo Rates
According to a December 8, 2011 Justice Department press release, two executives of Luxembourg-based Cargolux Airlines International S.A. have each pleaded guilty and agreed to serve 13 months in prison for participating in a conspiracy to fix cargo rates for international air shipments.
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Execs Conspired w/ Others to Suppress & Eliminate Competition by Fixing Prices
The former president and CEO and current employee of Cargolux, Ulrich Ogiermann, and the senior vice president of sales and marketing for Cargolux, Robert Van de Weg, pleaded guilty to conspiring with others to suppress and eliminate competition by fixing and coordinating certain surcharges, including security and fuel surcharges, charged to customers located in the U.S. and elsewhere for air cargo shipments, including shipments to and from the U.S.
According to the indictment, Ogiermann participated in the conspiracy from at least as early as October 2001 until at least February 2006, and Van de Weg participated in the conspiracy from at least as early December 2003 until at least February 2006.
Each Agreed to Pay a $20K Criminal Fine
Under the plea agreements, Ogiermann and Van de Weg have each agreed to pay a $20,000 criminal fine and to cooperate with the DOJ's ongoing investigation.
Total of 22 Airlines, 21 Execs Charged in DOJ's Ongoing Investigation
Including Ogiermann and Van de Weg, a total of 22 airlines and 21 executives have been charged in DOJ's ongoing investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time.
(See ITT's Online Archives 10102916 for summary of the two Cargolux executives' indictment charges.
See ITT's Online Archives 10111216 for summary of the European Union fining Cargolux and ten other airlines for operating a worldwide cartel which fixed prices on air cargo services in the EU.)