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GE, Sony, Nvidia said to be part of Justice Dept. probe – The China Post

April 28, 2010 By Leave a Comment

The U.S. Justice Department has questioned General Electric Co., Sony Corp. and Nvidia Corp. as part of a probe into the technology industry’s recruiting and hiring practices, according to a person familiar with the matter.

Authorities are examining whether companies secretly agreed to not recruit or hire each other’s employees, an antitrust violation that could deprive workers of higher salaries, said the person, who requested anonymity.

The disclosure that officials at the three companies have been questioned indicates a wider investigation than was previously known publicly. The Wall Street Journal has reported that the investigation also involves Intel Corp., International Business Machines Corp., Google Inc., Apple Inc. and IAC/InteractiveCorp.

Collusion of this sort “would hurt the workers” and give consumers “fewer choices,” said Robert Lande, a law professor at the University of Baltimore. Besides depressing wages, such an agreement may stifle innovation, he said.

The Justice Department hasn’t determined whether any company violated the law, said the person familiar with the matter. Investigators are still following up on leads from their discussions with the firms and examining several time periods, the person said.

via GE, Sony, Nvidia said to be part of Justice Dept. probe – The China Post.

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How Altria Is Winnowing Out Fake Marlboros – BusinessWeek

April 12, 2010 By

Cigarette smuggling is booming, in part because New York and 21 other states have raised cigarette excise taxes in recent years. On top of that, the U.S. government increased the federal tax on cigarettes last year by 159%, to $1.01 per pack. A pack now typically sells for about $10 in New York City, more than double what it cost 10 years ago, and the state is considering yet another excise increase.

The high levies, meant to help close huge budget gaps and discourage smoking, have had the unintended side effect of spurring the illicit market. One passenger car filled with Marlboros bought in low-tax Virginia and driven up Interstate 95 to resell in New York can yield more than $30,000 in profit, says Crisanto Perez, a senior official with the U.S. Bureau of Alcohol, Tobacco, Firearms, & Explosives.

In Asia, Altria employees have begun to build an intelligence network to combat the counterfeiting problem. The company cites academic research estimating that factories in China manufacture 400 billion knock-off cigarettes a year. Altria has hired detectives to try to infiltrate the international distributors that sell Chinese fakes to mom-and-pop shops in the U.S. The company says it will funnel the information it gathers to government authorities.

Back in the U.S., Altria has 21 employees in its brand integrity unit, which it created in 2002. They are assisted by outside contractors hired nationwide. The company even has given nearly $2 million over the past eight years to cash-strapped public police departments in such places as Los Angeles and Suffolk County, N.Y., to help fund contraband investigations.

Tax collectors have their own concerns. New York currently loses $1 billion a year because of cigarette tax cheating, according to a 2009 study by the New York Association of Convenience Stores. Across the country, tobacco excise revenue lost annually to smuggling totals $5 billion, the U.S. Justice Dept.'s Inspector General concluded last year.

via How Altria Is Winnowing Out Fake Marlboros – BusinessWeek.

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Daimler agrees to settle Justice Department charges of bribing foreign officials – washingtonpost.com

March 24, 2010 By

Daimler has agreed to pay $185 million in fines and penalties to the U.S. government to settle charges that it violated federal bribery laws by paying tens of millions of dollars to officials in at least 22 countries to win lucrative contracts, according to a source familiar with the deal.

The proposed settlement would end a U.S. Justice Department investigation that concluded the German automaker had violated the Foreign Corrupt Practices Act (FCPA), which prohibits companies from bribing government officials to land business or receive favorable treatment.

In a 76-page filing in federal court on Tuesday, prosecutors said that Daimler made improper payments starting in 1998 to officials in countries that included China, Russia, Egypt, Greece and Nigeria. The charges against Daimler were made in a “criminal information filing” — a document that typically precedes a plea agreement.

via Daimler agrees to settle Justice Department charges of bribing foreign officials – washingtonpost.com.

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U.S. charges 22 with bribery involving arms sales | Reuters

January 19, 2010 By Leave a Comment

U.S. authorities accused 22 people, including an executive for Smith & Wesson Holding Corp (SWHC.O), with violating federal bribery laws involving the sale of various arms, the U.S. Justice Department said on Tuesday.

The indictments charged the individuals, including Smith & Wesson Vice President for Sales Amaro Goncalves, with violating the Foreign Corrupt Practices Act and conspiracy to commit money laundering involving the sale of items including guns and body armor.

Also charged was the chief executive of Protective Products of America Inc (PPA.TO), R. Patrick Caldwell, who previously worked for the U.S. Secret Service for 27 years and was the special agent in charge of the division for the vice president’s protection.

That company filed for bankruptcy protection last week and sought approval to be acquired by an affiliate of the private investment firm Sun Capital Partners Inc.

The indictments, filed in December, were unsealed by a U.S. judge on Tuesday and follow undercover operations last year. The individuals were arrested on Monday in Las Vegas and Miami.

via UPDATE 1-U.S. charges 22 with bribery involving arms sales | Reuters.

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