Two Cargolux executives indicted in conspiracy to fix surcharges on air cargo shipments

[News_Editor]

Two Cargolux executives indicted in conspiracy to fix surcharges on air cargo shipments

2010-10-29 06:21:09 GMT+7 (ICT)

WASHINGTON D.C. (BNO NEWS) -- Two executives of Cargolux Airlines International on Thursday were indicted for participating in a conspiracy to fix and coordinate certain surcharges on air cargo shipments to and from the United States.

Ulrich Ogiermann, president and CEO of Cargolux, and Robert Van de Weg, senior vice president of sales and marketing of Cargolux, were charged with conspiring with others to suppress and eliminate competition by fixing and coordinating certain surcharges, including security and fuel surcharges, charged to customers for air cargo shipments.

Ogiermann got involved in the fraudulent scheme since October 2001 while Van de Weg started participating in December 2003. Both executives continued in its criminal activity until February 2006.

Cargolux is one of the leading cargo airlines worldwide and operates scheduled and charter services on a network that covers all continents. They transport a variety of cargo shipments such as heavy equipment, perishable commodities and consumer goods to domestic and international destinations.

According to the indictment, the defendants agreed to fix and coordinate certain surcharges to be imposed on cargo shipments and not to pay commissions on those surcharges. As part of the conspiracy, Ogiermann and Van de Weg monitored the surcharges agreement and accepted payments at collusive and noncompetitive rates.

The price fixing violated the Sherman Act and such offense carries a maximum penalty of 10 years in prison and a $1 million fine. So far 18 airlines and 114 executives have been charged during the ongoing investigation led by the U.S. Justice Department.

To date, more than $1.6 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against 10 executives, including Ogiermann and Van de Weg.

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