South Korea-based company Jier Shin Korea Co. Ltd., and its president, Sang Joo Lee, have agreed to pay $2 million to the United States for civil antitrust and False Claims Act violations for their involvement in a bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea.

The United States previously reached civil settlements totaling over $205 million relating to the conspiracy with GS Caltex Corporation, Hanjin Transportation Co. Ltd., Hyundai Oilbank Co. Ltd., SK Energy Co. Ltd., and S-Oil Corporation. As with the prior civil settlements, this settlement reflects the important role of both Section 4A of the Clayton Act and the False Claims Act to ensure that the United States is compensated when it is the victim of anticompetitive conduct.

“Today’s settlement represents the final chapter of our efforts to use Section 4A of the Clayton Act to ensure that the companies involved in this conspiracy compensate American taxpayers for their anticompetitive activity,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “Together, these are the largest Section 4A settlements in American history, and we will continue to use this important enforcement tool when taxpayers are harmed by cartels.”

“This is the sixth False Claims Act settlement arising from the bid rigging of contracts to supply fuel to U.S. military bases in South Korea,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will pursue and hold accountable those who seek to defraud the American taxpayers, including those who conspire with others to do so.”

The Department’s Antitrust Division filed a civil antitrust complaint in the U.S. District Court for the Southern District of Ohio and, at the same time, filed a proposed settlement that, if approved by the court, would resolve the lawsuit against Jier Shin Korea and Mr. Lee for their anticompetitive conduct targeting the U.S. military in South Korea. The proposed settlement requires that Jier Shin Korea and Mr. Lee pay $2 million to the United States to resolve the civil antitrust violations. In addition, Jier Shin Korea and Mr. Lee have agreed to continue to cooperate with the United States’ civil investigations and to abide by an antitrust compliance program. The amount to be paid by Jier Shin Korea and Mr. Lee reflects the value of their cooperation, limitations on their ability to pay, and cost savings realized by avoiding extended litigation. The settlement further provides that the United States, if it discovers any material misrepresentations in the financial statements provided by Jier Shin Korea and Mr. Lee regarding their ability to pay, may recover the full amount by which Jier Shin Korea or Mr. Lee understated that ability.   back...