Thaindian News

LOS ANGELES, CALIFORNIA (BNO NEWS) – Over $15 million was paid by 14 different entities to the U.S. government to resolve civil allegations of fraudulently overbilling the Navy and other federal agencies, the Department of Justice said Friday.

Trelleborg AB, a Swedish manufacturer of marine fenders and marine hose, and 13 other corporations and individuals, have paid the government a total of $15,448,728 to resolve the issue that accused them of bid-rigging and price-fixing on sales of materials used on piers and other marine construction projects.

The lawsuit alleged that Trelleborg AB and four of its subsidiaries conspired to submit rigged bids, fix prices, and allocate market shares on marine fenders and plastic pilings purchased by the Navy and other federal departments and agencies from approximately June 2000 until August 2005.

Frank March, of Sevierville, Tennessee, and two Virginia corporations he formerly held a controlling interest in – SHI, Inc. and SII, Inc. – also allegedly participated in the conspiracy.

As a result, Trelleborg AB, and March paid $14 million and $1 million, respectively.

From approximately 1999 and May 2007, Bridgestone Corporation and Bridgestone Industrial Products America, Inc., the Yokohama Rubber Co., Ltd., Dunlop Oil & Marine, Ltd. and related companies Continental AG and Phoenix AG participated in the scheme as well.

Subsequently, Bridgestone has paid $178,108, Yokohama has paid $173,410, and Dunlop has paid $97,210.

Douglas Farrow filed his lawsuit on the behalf of the United States, the Justice Department’s Antitrust Division, commencing a parallel criminal investigation of the marine products industry, which has resulted in criminal convictions of nearly two dozen corporations and individuals. Mr. Farrow will receive between 15 percent and 25 percent of the recovery for it being a qui tam, or whistleblower, lawsuit.