A Taiwan-based auto lights manufacturer and its aftermarket U.S. distributor have pleaded guilty for participating in a seven-year, international conspiracy to fix the prices of auto lights. Tainan County, Taiwan-based Eagle Eyes Traffic Industrial Company and its U.S. subsidiary, Chino, California-based E-Lite Automotive, were sentenced yesterday by U.S. Judge Richard Seeborg in the Northern District of California to pay a total of $5 million in criminal fines.
According to a one-count indictment filed on 30 November 2011, Eagle Eyes and E-Lite conspired with others to suppress and eliminate competition by fixing the prices of aftermarket lights. Eagle Eyes participated in the conspiracy from about July 2001 until about September 2008, and E-Lite participated from about March 2006 until about September 2008.
According to court documents, the conspiracy was carried out by the two highest-ranking officers of Eagle Eyes, its chairman, Yu-Chu Lin, and vice chairman, Homy Hong-Ming Hsu, who were both charged along with Eagle Eyes and E-Lite. (See Chairman of Taiwan Auto Light Maker Guilty of Price Fixing)
The executives met with other co-conspirators and agreed to charge prices of aftermarket auto lights according to jointly-determined formulas DOJ said. The conspirators issued 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.” The conspirators also took steps to conceal their actions throughout the duration of the conspiracy.
In addition to today’s pleas, two other corporations have also pleaded guilty. Earlier this month, Sabry Lee pleaded guilty and was sentenced to pay a $200,000 criminal fine. Last November, Maxzone pleaded guilty and was sentenced to pay a $43 million criminal fine. (In spite of Mitt Romney’s assertion that corporations are people, there is no known way to lock one up.)
Chairman Lin, who resides in Taiwan, remains a fugitive. Vice Chairman Hsu, who was arrested at Los Angeles International Airport more than a year ago, pleaded guilty last September. Hsu is scheduled to be sentenced next year, which on the surface seems to be in keeping with the inefficiencies and leisurely schedules of taxpayer financed U.S. Courts, but the delay could also be tied up in a plea deal and the turning in other offenders. U.S. prosecutors are entirely without any accountability to the taxpayers who fund them.
In addition to Homy Hsu, three individuals have also pleaded guilty:
- Shiu-Min Hsu, the former chairman of Depo Auto Parts Industrial Company, a Taiwan manufacturer of aftermarket auto lights, pleaded guilty last March and is scheduled to be sentenced next January.
- Chien Chung Chen, aka Andrew Chen, the former executive vice president of Sabry Lee (U.S.A.), a U.S. distributor of aftermarket auto lights, pleaded guilty all the way back in June of 2011. He is scheduled to be sentenced on 15 January 2013.
- Polo Shu-Sheng Hsu, the highest-ranking officer of Maxzone Vehicle Lighting Corporation, another U.S. distributor of aftermarket auto lights, pleaded guilty on 29 March 2011, served his sentence of 180 days in prison and paid a $25,000 criminal fine.
