Information
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IN THE UNITED STATES DISTRICT COURT
The United States of America, acting through its attorneys, charges: COUNT ONE 1. Morganite, Inc. (hereinafter "Morganite") is made a defendant on the charges contained in Count One of this Information. 2. Beginning at least as early as January 1990 and continuing until at least May 2000, the exact dates being unknown to the United States, the defendant and co-conspirators engaged in a combination and conspiracy to suppress and eliminate competition by fixing the prices of (a) current collectors sold to certain transit authorities and private customers; (b) carbon brushes sold to certain original equipment manufacturers for automotive applications; (c) carbon brushes sold to certain original equipment manufacturers for battery electric vehicle applications; and (d) carbon brushes sold to certain transit authorities (hereinafter collectively "relevant carbon products") sold in the United States and elsewhere. The combination and conspiracy engaged in by the defendant and co-conspirators was carried out in the United States for periods that varied by product market segment as set forth below:
The combination and conspiracy engaged in by the defendant and co-conspirators was in unreasonable restraint of interstate and foreign trade and commerce in violation of Section 1 of the Sherman Act (15 U.S.C. § 1). 3. The charged combination and conspiracy consisted of a continuing agreement, understanding, and concert of action among the defendant and co-conspirators, the substantial terms of which were to agree to fix and maintain prices and to coordinate pricing for the sale of relevant carbon products sold in the United States and elsewhere. 4. For purposes of forming and carrying out the charged combination and conspiracy, the defendant and co-conspirators did those things that they combined and conspired to do, including, among other things:
BACKGROUND 5. Carbon brushes are used to transfer electrical current in direct current motors by acting as the rubbing contacts for electrical connectors in the motors. Direct current motors are used in a variety of products including automobiles, battery electric vehicles, and public transit vehicles. Carbon collectors are used to transfer electrical current from wires or rails for use in vehicles that are not independently powered. DEFENDANT AND CO-CONSPIRATORS 6. During the period covered by this Information, defendant, Morganite, was a corporation organized and existing under the laws of the State of North Carolina with its principal place of business in Dunn, North Carolina. During the period set forth in Count One of this Information, the defendant, Morganite, was engaged in the sale and manufacture of relevant carbon products to customers in the United States. 7. Various corporations and individuals not made defendants herein participated as co-conspirators in the offense charged herein and performed acts and made statements in furtherance thereof. 8. Whenever in this Count reference is made to any act, deed or transaction of any corporation, it means that the corporation engaged in the act, deed or transaction by or through its officers, directors, agents, employees or other representatives while they were actively engaged in the management, direction, control or transaction of its business or affairs. TRADE AND COMMERCE 9. During the period covered by Count One of this Information, the defendant, Morganite, and co-conspirators sold a substantial quantity of relevant carbon products in a continuous and uninterrupted flow of interstate and foreign trade and commerce to customers located in states or countries other than the states or countries in which the relevant carbon products were produced. 10. During the period covered by this Information, the activities of the defendant, Morganite, and co-conspirators that are the subject of Count One of this Information were within the flow of, and substantially affected, interstate and foreign trade and commerce. JURISDICTION AND VENUE 11. The combination and conspiracy charged in Count One of this Information was carried out, in part, within the Eastern District of Pennsylvania within the five years preceding the filing of this Information. ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1. 12. The Morgan Crucible Company plc, (hereinafter "Morgan Crucible") is made a defendant on the charge stated in Count Two of this Information. 13. During the period covered by Count Two of this Information, defendant, Morgan Crucible, was a corporation organized and existing under the laws of the United Kingdom with its principal place of business in Windsor, England. 14. Whenever in Count Two of this Information reference is made to any act, deed, or transaction of a corporation, the allegation means that the corporation engaged in the act, deed, or transaction by or through its officers, directors, agents, employees, or representatives while they were actively engaged in the management, direction, control, or transaction of its business or affairs. 15. In or about April 1999, a federal grand jury sitting in the Eastern District of Pennsylvania and investigating a conspiracy to fix the price of various carbon products sold in the United States and elsewhere issued a subpoena duces tecum to Morganite Industries, Inc., a subsidiary of the defendant, Morgan Crucible. 16. Beginning in or about November 2000 and continuing thereafter until in or about February 2001, Morgan Crucible knowingly attempted to corruptly persuade persons, whose identities are known to the United States Department of Justice, Antitrust Division (hereinafter "Antitrust Division"), with intent to influence their testimony in official proceedings before the grand jury sitting in the Eastern District of Pennsylvania in that:
ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 1512(b)(1). 17. Each and every allegation contained in Paragraphs 12 through 14 of Count Two of this Information is here re-alleged with the same force and effect as though said paragraphs were set forth in full detail. 18. In or about April 1999 and in or about August 2001, a federal grand jury sitting in the Eastern District of Pennsylvania and investigating a conspiracy to fix the price of various carbon products sold in the United States and elsewhere issued subpoenas duces tecum to Morganite Industries, Inc., a subsidiary of the defendant, Morgan Crucible. The scope of the subpoenas included all divisions and affiliates of Morganite Industries, Inc. that were located in the United States. 19. Beginning in or about April 1999 and continuing thereafter to in or about August 2001, the defendant, Morgan Crucible, knowingly corruptly persuaded an employee of one of its United States subsidiaries, whose identity is known to the Antitrust Division, (hereinafter "CC-2") with intent to cause or induce that employee to destroy or conceal certain documents located within the United States in the custody and control of the defendant's subsidiary and with intent to impair the availability of those documents for use in official proceedings before the grand jury sitting in the Eastern District of Pennsylvania in that:
ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION 1512(b)(2)(B). Dated:
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