WASHINGTON,
Jan 10 (Reuters) – A Michigan machine tool company, its president, and two executives
linked to separate firms agreed to pay $US1.6 million in criminal fines for rigging
tool contract bids to General Motors Corp. , the Justice Department announced
Wednesday.
Frederick Watson Jr., president of Motorama Engineering Inc., of Farmington,
Michigan, pleaded guilty to using mail fraud to conspire to fix bids and will
pay a $US40,000 fine.
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Motorama itself entered a guilty plea to allocating contracts for tooling on
auto projects for GM and will pay a fine of $US1.1 million.
Theodore Sawchuk, who was president of SA-GO Industries, formerly of Fraser,
Michigan, which is now out of business, pleaded guilty to conspiring to eliminate
competition and will pay a fine of $US20,000.
The Justice Department announced that Sauger Industries Inc., of Troy, Michigan,
and its president, John A. Baker, have also been charged.
"These conspirators denied General Motors the benefits of competition
in its award of tooling contracts," A. Douglas Melamed, acting assistant
attorney general in charge of the antitrust division, said of those who have
pleaded guilty.
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By GlobalData"The antitrust division will vigorously prosecute corporations and business
executives who violate the antitrust laws through such bid ridding," he
said in a statement.
The indictments by a grand jury in Detroit were unsealed Wednesday, the government
said.
