24 Sep 2004
San Francisco, California-A second former Crompton Corp. executive, James Conway, has agreed to plead guilty to participating in an international conspiracy to fix prices in the rubber chemicals market, the Department of Justice said.
Conway, formerly executive vice president for performance chemicals and elastomers, was charged with fixing the prices of certain rubber chemicals sold in the U.S. during 2000 and 2001. Conway, who agreed to assist the government in its ongoing investigation, could face three years in prison and fines of up to $350 000 for the violations, the Justice Department said
Earlier, Joseph Eisenberg, also an executive vice president at Crompton/Uniroyal Chemical, agreed to plead guilty to identical charges. He faces similar sentencing provisions and also agreed to assist the government in its ongoing rubber chemicals investigation, the agency said.
Crompton pleaded guilty in March to price-fixing in the rubber chemicals market and agreed to pay fines of $50 million in the US and $7 million in Canada, to be paid over six years. Crompton reported $191 million in rubber additives sales in 2003. Bayer A.G. also is charged with participating in the same conspiracy. Bayer is awaiting sentencing, but has agreed to pay a $66 million criminal fine, the Justice Department said.
Crompton and Bayer still are being investigated by European authorities and face a number of civil suits from rubber processors in the U.S. and Canada seeking compensation for being overcharged during the investigation period.
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