Source: http://www.justice.gov/atr/cases/f232000/232079.htm
Timestamp: 2014-03-10 01:53:22
Document Index: 299076408

Matched Legal Cases: ['§ 1', '§1', '§ 3571', '§1', '§ 3571', '§ 3561', '§8', '§ 3563', '§ 3013', '§ 3553', '§ 3553', '§1', '§1', '§2', '§8', '§ 3612', '§5', '§ 3572', '§ 3553', '§6', '§ 1621', '§ 1623', '§ 401', '§ 1503', '§ 1621', '§ 1001', '§ 1503', '§8', '§2', '§8', '§8', '§8', '§8']

Plea Agreement : U.S. v. Peck & Hale, L.L.C.
UNITED STATES OF AMERICA, v. PECK & HALE, L.L.C.,
| Criminal No. 08CR123-1
2008 MAR 26 PM 12:28
E.D.N.Y. PLEA AGREEMENT
The United States of America and Peck & Hale, L.L.C., ("defendant"), a corporation
organized and existing under the laws of New York, hereby enter into the following Plea
(d)to have a trial by jury, at which it would be presumed not guilty of the charges and the United States would have to prove every essential element of the charged offenses beyond a reasonable doubt for it to be found guilty;
1(b)-(g) above. The defendant also knowingly and voluntarily waives the right to file any appeal,
Crim. P. 7(b), the defendant will waive indictment and plead guilty at arraignment to a two-count
Information to be filed in the United States District Court for the Eastern District of New York. Count I of the Information is based on the conduct of two former sales employees whose
employment was terminated in June 2005. It will charge the defendant with participating in a
conspiracy to suppress and eliminate competition by agreeing to rig bids on U.S. Navy contracts
for metal sling hoist assemblies, sold in the United States, between December of 2002 and
October of 2003, in violation of the Sherman Antitrust Act, 15 U.S.C. § 1. Count II of the
Information is based on the conduct of two former sales employees whose employment was
terminated in June 2005. It will charge the defendant with participating in a conspiracy to
suppress and eliminate competition by agreeing to rig bids submitted to the United States
Department of Defense for military tiedown equipment and cargo securing systems used to
secure container and cargo on vehicles, vessels, and aircraft, sold in the United States, between
November of 2001 and January of 2005, in violation of the Sherman Antitrust Act, 15 U.S.C.
§1. 3.	The defendant, pursuant to the terms of this Plea Agreement, will plead guilty to the
criminal charges described in Paragraph 2 above and will make a factual admission of guilt to the
Court in accordance with Fed. R. Crim. P. 11. POSSIBLE MAXIMUM SENTENCE
imposed against it upon conviction for Count I of the Information, a violation of Section One of
the Sherman Antitrust Act, is a fine in an amount equal to the greatest of:
(c)twice the gross pecuniary loss caused to the victims of the crime by the conspirators (18 U.S.C. § 3571(c) and (d)).
5.	The defendant understands that the statutory maximum penalty which may be imposed against it upon conviction for Count II of the Information, a violation of Section One of
(a)$100 million (15 U.S.C. §1); (b) twice the gross pecuniary gain the conspirators derived from the crime (18 U.S.C. § 3571(c) and (d)); or
6.	In addition, the defendant understands that: (a)pursuant to 18 U.S.C. § 3561(c)(1), the Court may impose a term of probation of at least one year, but not more than five years; (b) pursuant to §8B1.1 of the United States Sentencing Guidelines ("U.S.S.G.," "Sentencing Guidelines," or "Guidelines") or 18 U.S.C. § 3563(b)(2)
(c)pursuant to 18 U.S.C. § 3013(a)(2)(B), the Court is required to order the
defendant to pay a $400 special assessment upon conviction for the charged
7.	The defendant understands that the Sentencing Guidelines are advisory, not mandatory, but that the Court must consider the Guidelines in effect on the day of
sentencing, along with the other factors set forth in 18 U.S.C. § 3553(a), in determining
and imposing sentence. The defendant understands that the Guidelines determinations
will be made by the Court by a preponderance of the evidence standard. The defendant
understands that although the Court is not ultimately bound to impose a sentence within
the applicable Guidelines range, its sentence must be reasonable based upon
consideration of all relevant sentencing factors set forth in 18 U.S.C. § 3553(a). Pursuant
to U.S.S.G. §1B1.8, the United States agrees that self-incriminating information that the
defendant provides to the United States pursuant to this Plea Agreement will not be used
to increase the volume of affected commerce attributable to the defendant or in
U.S.S.G. §1B1.8(b).	8. The United States and the defendant agree that the affected volume of
commerce attributable to the defendant is $859,395.80, and that the base fine is 20% of
the volume of commerce, pursuant to U.S.S.G. §2R1.1(d)(1) and §8C2.4, as described in
the attached Guidelines calculation (Exhibit 1 to this Plea Agreement, and incorporated
by reference herein). SENTENCING AGREEMENT
9. Pursuant to Fed. R. Crim. P. 11(c)(1)(C), the United States and the defendant
agree that the appropriate disposition of this case is, and agree to recommend jointly that
the Court impose, a sentence within the applicable Guidelines range requiring the
defendant to pay to the United States a criminal fine of $275,000, payable in installments
as set forth below with interest accruing under 18 U.S.C. § 3612(f)(1)-(2) ("the
recommended sentence"). The parties agree that there exists no aggravating or mitigating
circumstance of a kind, or to a degree, not adequately taken into consideration by the U.S.
Sentencing Commission in formulating the Sentencing Guidelines justifying a departure
pursuant to U.S.S.G. §5K2.0. The parties agree not to seek or support any sentence
outside of the Guidelines range nor any Guidelines adjustment for any reason that is not
set forth in this Plea Agreement. The parties further agree that the recommended
sentence set forth in this Plea Agreement is reasonable. (a)	The United States and the defendant agree to recommend, in the interest of
justice pursuant to 18 U.S.C. § 3572(d)(1), that the fine be paid in the following
installments: within thirty (30) days of imposition of sentence -- $55,000 (plus any
accrued interest); at the one-year anniversary of imposition of sentence
("anniversary") -- $55,000 (plus any accrued interest); at the two-year anniversary --
$55,000 (plus any accrued interest); at the three-year anniversary -- $55,000 (plus
any accrued interest); at the four-year anniversary -- $55,000 (plus any accrued
interest); and at the five-year anniversary -- $55,000 (plus any accrued interest);
provided, however, that the defendant shall have the option at any time before the
five-year anniversary of prepaying the remaining balance (plus any accrued interest)
then owing on the fine.	(b)	The defendant understands that the Court will order it to pay a $400
imposed.	(c) Both parties will recommend that no term of probation be imposed, but the defendant understands that the Court's denial of this request will not void this Plea Agreement.
(d)	The United States and the defendant jointly submit that this Plea Agreement, together with the record that will be created by the United States and the
Paragraph 10, will provide sufficient information concerning the defendant, the crime charged in this case, and the defendant's role in the crime to enable the meaningful exercise of sentencing authority by the Court under 18 U.S.C. § 3553. The United States and defendant agree to request jointly that the Court accept the
defendant's guilty plea and impose sentence on an expedited schedule as early as the date of arraignment, based upon the record provided by the defendant and theUnited
States, under the provisions of Fed. R. Crim. P. 32(c)(1)(A)(ii) and U.S.S.G. §6A1.1. The Court's denial of the request to impose sentence on an expedited schedule will not void this Plea Agreement.	10.	Subject to the ongoing, full, and truthful cooperation of the defendant described in Paragraph 13 of this Plea Agreement, and before sentencing in the case, the
extent of the defendant's cooperation and its commitment to prospective cooperation with
the United States' investigation and prosecutions, all material facts relating to the
defendant's involvement in the charged offense, and all other relevant conduct.
11.	The United States and the defendant understand that the Court retains
complete discretion to accept or reject the recommended sentence provided for in
Paragraph 9 of this Plea Agreement. (a)If the Court does not accept the recommended sentence, the United States
and the defendant agree that this Plea Agreement, except for Paragraph
11(b) below, shall be rendered void. (b) If the Court does not accept the recommended sentence, the defendant will be free to withdraw its guilty plea (Fed. R. Crim. P.
11(c)(5) and (d)). If the defendant withdraws its plea of guilty, this Plea
Agreement, the guilty plea, and any statement made in the course of any
proceedings under Fed. R. Crim. P. 11 regarding the guilty plea or this Plea Agreement or made in the course of plea discussions with an attorney
for the government shall not be admissible against the defendant in any
criminal or civil proceeding, except as otherwise provided in Fed. R. Evid.
410. In addition, the defendant agrees that, if it withdraws its guilty plea
pursuant to this subparagraph of the Plea Agreement, the statute of
limitations period for any offense referred to in Paragraph 15 of this Plea
Agreement will be tolled for the period between the date of the signing of
the Plea Agreement and the date the defendant withdrew its guilty plea or
for a period of sixty (60) days after the date of the signing of the Plea
Agreement, whichever period is greater.
12. In light of the availability of civil causes of actions, which potentially provide
for a recovery of a multiple of actual damages, the United States agrees that it will not
DEFENDANT'S COOPERATION 13. The defendant will cooperate fully and truthfully with the United States in the
prosecution of this case, the conduct of the current federal investigation of violations of
federal antitrust and related criminal laws involving the manufacture and sale of metal
sling hoist assemblies to the United States Navy and the manufacture and sale of tiedown
equipment and cargo securing systems to the United States Department of Defense, any
other federal investigation resulting therefrom, and any litigation or other proceedings
arising or resulting from any such investigation to which the United States is a party
(a)producing to the United States all non-privileged documents, information,
defendant, requested by the United States in connection with any Federal Proceeding; and (b) using its best efforts to secure the ongoing, full, and truthful cooperation, as defined in Paragraph 14 of this Plea Agreement, of the current and
former directors, officers, and employees of the defendant as may be requested by the
United States, but excluding Wilson Freire, Robert Fischetti, and Ransom Soper III,
including making these persons available, at the defendant's expense, for interviews
and the provision of testimony in grand jury, trial, and other judicial proceedings in
connection with any Federal Proceeding.
14.	The ongoing, full, and truthful cooperation of each person described in
Paragraph 14(b) above will be subject to the procedures and protections of this paragraph,
and shall include, but not be limited to:
(a)producing all non-privileged documents, including claimed personal
documents, and other materials, wherever located, requested by attorneys and agents
of the United States; (b) making himself or herself available for interviews, not at the expense of the
(c)responding fully and truthfully to all inquiries of the United States in
(d)otherwise voluntarily providing the United States with any non-privileged
material or information not requested in (a) - (c) of this paragraph that he or she may
have that is related to any Federal Proceeding; (e)when called upon to do so by the United States in connection with any
Federal Proceeding, testifying in grand jury, trial, and other judicial proceedings fully, truthfully, and under oath, subject to the penalties of § 1621), making false statements or declarations in grand jury or court proceedings
(18 U.S.C. § 1623), contempt (18 U.S.C. §§ 401-402), and obstruction of justice (18
U.S.C. § 1503, et seq.); and
(f)agreeing that, if the agreement not to prosecute him or her in this Plea Agreement is rendered void under Paragraph 16(c), the statute of limitations period
for any Relevant Offense as defined in Paragraph 16(a) will be tolled as to him or her
for the period between the date of the signing of this Plea Agreement and six (6)
months after the date that the United States gave notice of its intent to void its
obligations to that person under the Plea Agreement.
15.	Upon acceptance of the guilty plea called for by this Plea Agreement and
the imposition of the recommended sentence, and subject to the cooperation requirements
of Paragraph 13 of this Plea Agreement, the United States agrees that it will not bring
further criminal charges against the defendant for any act or offense committed before the
date of this Plea Agreement that was undertaken in furtherance of an attempted or
completed antitrust conspiracy involving the manufacture and sale of metal sling hoist
assemblies to the United States Navy and the manufacture and sale of tiedown equipment
and cargo securing systems to the United States Department of Defense. The
nonprosecution terms of this paragraph do not apply to civil matters of any kind, to any
violation of the federal tax or securities laws, or to any crime of violence.
(a)	Upon the Court's acceptance of the guilty plea called for by this Plea
exceptions noted in Paragraph 16(c), the United States will not bring criminal charges against any current or former director, officer, or employee of the defendant
for any act or offense committed before the date of this Plea Agreement and while that person was acting as a director, officer, or employee of the defendant that was
undertaken in furtherance of an attempted or completed antitrust conspiracy involving the manufacture and sale of metal sling hoist assemblies to the United
States Navy and the manufacture and sale of tiedown equipment and cargo securing
systems to the United States Department of Defense ("Relevant Offense"), except that the protections granted in this paragraph shall not apply to Wilson Freire, Robert
Fischetti, or Ransom Soper III;
(b)	Should the United States determine that any current or former director,
Proceeding, the United States may request that person's cooperation under the terms
of this Plea Agreement by written request delivered to counsel for the individual (with a copy to the undersigned counsel for the defendant) or, if the individual is not
(c)	If any person requested to provide cooperation under Paragraph 16(b) fails
Agreement as they pertain to that person, and the agreement not to prosecute that
person granted in this Plea Agreement, shall be rendered void;
(d)	Except as provided in Paragraph 16(e), information provided by a person
described in Paragraph 16(b) to the United States under the terms of this Plea
Agreement pertaining to any Relevant Offense, or any information directly or
indirectly derived from that information, may not be used against that person in a
criminal case, except in a prosecution for perjury (18 U.S.C. § 1621), making a false
statement or declaration (18 U.S.C. §§ 1001, 1623), or obstruction of justice (18
U.S.C. § 1503, et seq.);	(e)	If any person who provides information to the United States under this Plea
Agreement fails to comply fully with his or her obligations under Paragraph 14 of this Plea Agreement, the agreement in Paragraph 16(d) not to use that information
or any information directly or indirectly derived from it against that person in a
criminal case shall be rendered void;
(f)	The nonprosecution terms of this paragraph do not apply to civil matters of
any kind, to any violation of the federal tax or securities laws, or to any crime of
(g)	Documents provided under Paragraphs 13(a) and 14(a) shall be deemed
responsive to outstanding grand jury subpoenas issued to the defendant. 17.	The defendant understands that it may be subject to administrative action
by federal or state agencies other than the United States Department of Justice, Antitrust
Division, based upon the conviction resulting from this Plea Agreement, and that this Plea Agreement in no way controls whatever action, if any, other agencies may take. However, the United States agrees that, if requested, it will advise the appropriate officials of any governmental agency considering such administrative action of the fact,
manner, and extent of the cooperation of the defendant as a matter for that agency to
consider before determining what administrative action, if any, to take. REPRESENTATION BY COUNSEL
attorneys have provided competent legal representation. The defendant has thoroughly
reviewed this Plea Agreement and acknowledges that counsel has advised it of the nature
of the charges, any possible defenses to the charges, and the nature and range of possible
19.	The defendant's decision to enter into this Plea Agreement and to tender a
plea of guilty is freely and voluntarily made and is not the result of force, threats,
assurances, promises, or representations other than the representations contained in this
Plea Agreement. The United States has made no promises or representations to the
defendant as to whether the Court will accept or reject the recommendations contained
within this Plea Agreement.
20.	The defendant agrees that, should the United States determine in good faith, during the period that any Federal Proceeding is pending, that the defendant has
failed to provide full and truthful cooperation, as described in Paragraph 13 of this Plea
Agreement, or has otherwise violated any provision of this Plea Agreement, the United
facsimile transmission and may also notify counsel by telephone of its intention to void
any of its obligations under this Plea Agreement (except its obligations under this
paragraph), and the defendant shall be subject to prosecution for any federal crime of
which the United States has knowledge including, but not limited to, the substantive
offenses relating to the investigation resulting in this Plea Agreement. The defendant
agrees that, in the event that the United States is released from its obligations under this
Plea Agreement and brings criminal charges against the defendant for any offense referred to in Paragraph 15 of this Plea Agreement, the statute of limitations period for
such offense will be tolled for the period between the date of the signing of this Plea
Agreement and six (6) months after the date the United States gave notice of its intent to
void its obligations under this Plea Agreement. 21.	The defendant understands and agrees that in any further prosecution of it resulting from the release of the United States from its obligations under this Plea Agreement, because of the defendant's violation of the Plea Agreement, any documents, statements, information, testimony, or evidence provided by it or current or former
directors, officers, or employees of it to attorneys or agents of the United States, federal
grand juries, or courts, and any leads derived therefrom, may be used against it in any such further prosecution. In addition, the defendant unconditionally waives its right to
challenge the use of such evidence in any such further prosecution, notwithstanding the
protections of Fed. R. Evid. 410.
22.	This Plea Agreement constitutes the entire agreement between the United States and the defendant concerning the disposition of the criminal charges in this
case. This Plea Agreement cannot be modified except in writing, signed by the United
defendant as evidenced by the Resolution of the Board of Directors of the defendant
attached to, and incorporated by reference in, this Plea Agreement. 24.	The undersigned attorneys for the United States have been authorized by the Attorney General of the United States to enter this Plea Agreement on behalf of the
25.	A facsimile signature shall be deemed an original signature for the purpose
of executing this Plea Agreement. Multiple signature pages are authorized for the purpose
of executing this Plea Agreement.
DATED: 3/26/2008
BY:_______________/s/________________ John Szeglin	President	Peck & Hale, L.L.C.
Counsel for Peck & Hale, L.L.C.
Antitrust Division 1401 H Street, NW,
Count One (Certified Slings/TIP) Volume of Commerce
Count Two (Jacobi) Volume of Commerce
$699,377.80
(1)Base fine, §8C2.4(b) & §2R1.1(d)(1)
0.20 X 859,395.80 (20%)$171,879.16
(2) Culpability score Starting score, §8C2.5(a) 5
Tolerance of Criminal Activity, §8C2.5(b)(5) +1 Acceptance of Responsibility, §8C2.5(g)(3) -1
(3) Minimum and Maximum Multipliers, §8C2.6	1.0 < X < 2.0 (4) Guidelines Range