Manuli Rubber Industries to pay $2 million fine in Marine Hose case

ERJ staff report (DS)

Washington, DC -- Manuli Rubber Industries SpA and the former president of its former U.S. subsidiary -- Robert Furness -- have agreed to plead guilty and pay more than $2 million in criminal fines for participating in a conspiracy to rig bids, fix prices, and allocate market shares of marine hose sold in the United States and elsewhere. Furness has agreed to serve jail time. Additionally, Giovanni Scodeggio, an Italian citizen who is the manager of Parker ITR S.r.l.'s Oil & Gas Business Unit located in Veniano, Italy has also agreed to plead guilty for participating in the same conspiracy.

Under the terms of the plea agreements, which are subject to court approval, Manuli has agreed to pay a criminal fine of $2 million (Euro 1.27 million), and Furness has agreed to serve 14 months in prison and pay a $75,000 criminal fine. Both Manuli and Furness have also agreed to cooperate fully in the Department's ongoing antitrust investigation. Manuli is the first corporation to be charged in the investigation.

Three other Manuli executives have already been charged for their roles in the conspiracy. Charles J. Gillespie, a former regional sales manager, pleaded guilty in May 2008 to a charge stemming from his role in the conspiracy. Gillespie has yet to be sentenced. Francesco Scaglia, the deputy manager of Manuli's Oil & Marine Division, and Val M. Northcutt, another regional sales manager, were indicted in September 2007 in the Southern District of Florida for their roles in the conspiracy. The case is currently set to go to trial in West Palm Beach, Florida, in October 2008.

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Press release from US Dept of Justice