Source: http://www.justice.gov/atr/cases/f206600/206684.htm
Timestamp: 2014-04-18 03:19:37
Document Index: 560324596

Matched Legal Cases: ['§ 1', '§ 1', '§ 3571', '§ 8', '§ 3013', '§ 8', '§ 3561', '§ 1', '§ 1', '§ 3013', '§ 8', '§ 3553', '§ 6', '§ 1001', '§ 1503', '§ 1621', '§ 1623', '§ 401', '§ 1503', '§ 1621', '§ 1001', '§ 1503', '§ 1621', '§\n1623', '§ 1503', '§ 401']

Plea Agreement : U.S. v. Degussa U.K. Holdings LTD., f/d/b/a Laporte PLC
formats: this web page (for browsing content) and PDF (comparable to original document formatting). To view the PDF you will need Acrobat Reader, which may be downloaded from the Adobe site. For an official signed copy, please contact the Antitrust Documents Group. MARC SIEGEL (CSBN 142071)	DANA R. WAGNER (CSBN 209099)
UNITED STATES OF AMERICA v. DEGUSSA U.K. HOLDINGS LTD., f/d/b/a LAPORTE PLC,
| No. CR 04-0300 SI PLEA AGREEMENT
The United States of America and DEGUSSA U.K. HOLDINGS LTD. ("the defendant"),
a corporation organized and existing under the laws of the United Kingdom, hereby enter into the
to be represented by an attorney; to be charged by indictment; as a corporation organized and existing under the laws of the United Kingdom, to decline to accept service of the Summons in this case, and to contest the jurisdiction of the United States to prosecute this case against it in the United States District Court for the Northern District of California; to plead not guilty to any criminal charge brought against it; to have a trial by jury, at which it would be presumed not guilty of the charge and the United States would have to prove every essential element of the charged offense beyond a reasonable doubt for it to be found guilty; to confront and cross-examine witnesses against it and to subpoena witnesses in its defense at trial; to be charged within five years of the date of the offense and in a State and District where the offense occurred; to appeal its conviction if found guilty; and to appeal the imposition of sentence against it.
2.	The defendant waives the rights set out in Paragraph 1(b)-(h), above, including all
jurisdictional defenses to the prosecution of this case, and voluntarily consents to the jurisdiction
of the United States to prosecute this case against it in the United States District Court for the
Northern District of California. The defendant agrees to have its sentence determined under the
United States Sentencing Guidelines ("U.S.S.G.") and waives all constitutional challenges to the
validity of the U.S.S.G. The defendant waives any right it may have to have facts that determine
its Guidelines fine range under the U.S.S.G. (including any facts used to determine its offense
level, base fine amount, culpability score, any specific offense characteristic, or other
enhancement or adjustment) alleged in an indictment and found by a jury beyond a reasonable
doubt. The defendant agrees that facts that determine its Guidelines fine range will be found by
the Court at sentencing by a preponderance of the evidence and that the Court may consider any
reliable evidence, including hearsay, in making such determinations. The defendant further
agrees that it is making the above waivers knowingly and voluntarily, after fully conferring with
and on the advice of counsel, and that the waivers are for the defendant's own benefit. The
defendant also waives the right to appeal the imposition of sentence against it, so long as the
sentence imposed is consistent with the Recommended Sentence in Paragraph 8 of this Plea
Agreement. Pursuant to Fed. R. Crim. P. 7(b), the defendant will waive indictment and plead
guilty at arraignment to a one-count Information to be filed in the United States District Court for
the Northern District of California. The Information will charge the defendant with participating
in a conspiracy to suppress and eliminate competition by fixing the prices of organic peroxides
("OP"), specifically t-butyl perbenzoate and t-butyl peracetate dedicated to styrene
polymerization (the "Specified OP Products"), sold in the United States and elsewhere,
beginning in or about August 1997 and continuing until in or about March 1998, 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 Court in accordance with Fed. R. Crim. P. 11, as set forth in Paragraph 4 below. FACTUAL BASIS FOR OFFENSE CHARGED
prove the following facts:
For purposes of this Plea Agreement, the "relevant period" is that period beginning in or about August 1997 and continuing until in or about March 1998. During the relevant period, the defendant was a corporation organized and existing under the laws of the United Kingdom. Degussa Aktiengesellschaft, a corporation organized and existing under the laws of the Federal Republic of Germany, is the parent company of the defendant. The defendant has its principal place of business in London, England. During the relevant period, the defendant was a producer of the Specified OP Products and was engaged in the sale of those products in the United States and elsewhere. The Specified OP Products are essential chemical inputs used in the manufacture of certain polystyrene products, including containers and packaging materials. During the relevant period, the defendant had 200 or more employees in its business unit that produced and sold the Specified OP Products, and its sales of those products to United States customers totaled at least $2,831,231. During the relevant period, the defendant, through its officers and employees, including high-level personnel within its business unit that produced and sold the Specified OP Products, participated in a conspiracy among major OP producers, the primary purpose of which was to fix the prices of the Specified OP Products to be sold in the United States and elsewhere. In furtherance of the conspiracy, the defendant, through its officers and employees, engaged in discussions and attended meetings with representatives of other major OP producers. During those discussions and meetings, agreements were reached to fix the prices of the Specified OP Products to be sold in the United States and elsewhere. During the relevant period, the Specified OP Products sold by one or more
of the conspirator firms, and equipment and supplies necessary to the production and
distribution of the Specified OP Products, as well as payments for the Specified OP
Products, traveled in interstate and foreign commerce. The business activities of the
defendant and its co-conspirators in connection with the production and sale of the
Specified OP Products affected by this conspiracy were within the flow of, and
5.	The defendant understands that the maximum penalty which may be imposed
against it upon conviction for a violation of Section One of the Sherman Antitrust Act is a fine in
an amount equal to the greatest of:
$10 million (15 U.S.C. § 1); twice the gross pecuniary gain the conspirators derived from the crime (18 U.S.C. § 3571(c) and (d)); or twice the gross pecuniary loss caused to the victims of the crime by the
6.	In addition, the defendant understands that: pursuant to § 8B1.1 of the United States Sentencing Guidelines ("U.S.S.G."), the Court may order it to pay restitution to the victims of the offense; pursuant to 18 U.S.C. § 3013(a)(2)(B) and U.S.S.G. § 8E1.1, the Court is required to order the defendant to pay a $400 special assessment upon conviction for the charged crime; and 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.	SENTENCING GUIDELINES
7.	Sentencing for the offense to be charged will be conducted pursuant to the
U.S.S.G. Manual in effect on the day of sentencing. 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 to otherwise enhance the defendant's applicable sentencing
guidelines range, except to the extent provided in U.S.S.G. § 1B1.8(b).
$1.5 million, payable in full before the fifteenth (15th) day after the date of judgment (the
"Recommended Sentence"). The defendant understands that the Court will order it to pay a $400 special assessment, pursuant to 18 U.S.C. § 3013(a)(2)(B) and U.S.S.G. § 8E1.1, in addition to any fine imposed. The United States and the defendant will both recommend against the imposition of a term of probation, but the defendant understands that the Court is free to impose a term of probation. 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
defendant at the plea and sentencing hearings, and the further disclosure described in
Paragraph 9, 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 impose sentence on an expedited schedule as early as the date of arraignment, based
upon the record provided by the defendant and the United States, under the provisions of
Fed. R. Crim. P. 32(c)(1)(A)(ii), U.S.S.G. § 6A1.1, and Rule 32-1(b) of the Criminal
Local Rules. The Court's denial of the request to impose sentence on an expedited
schedule will not void this Plea Agreement. 9.	Subject to the ongoing, full, and truthful cooperation of the defendant described in
fully advise the Court of the fact, manner, and extent of the defendant's cooperation with the
United States's investigations and prosecutions; of the defendant's commitment to prospective
cooperation with such investigations and prosecutions; of all material facts relating to the
defendant's involvement in the charged offense; and of all other relevant considerations.
10.	The United States and the defendant understand that the Court retains complete
Agreement. If the Court does not accept the Recommended Sentence, the United States and the defendant agree that this Plea Agreement, except for Paragraph 10(b) below, shall be rendered void. Neither party may withdraw from this Plea Agreement, however, based on the imposition of a term of probation. 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
14 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
11. In light of the civil cases filed, which potentially provide for a recovery of a
multiple of actual damages, the United States agrees that it will not seek a restitution order for
the offense charged in the Information.
12.	The defendant, along with its parent company Degussa Aktiengesellschaft and
their successors and subsidiaries (collectively, "Related Entities"), will cooperate fully and
truthfully with the United States in any "Federal Proceeding," hereby defined to encompass the
prosecution of this case, the ongoing federal investigation of violations of antitrust laws and
related criminal laws in the OP industry, and any litigation or other proceeding arising or
resulting from any such investigation to which the United States is a party. The ongoing, full,
producing to the United States all documents, information, and other materials, wherever located, in the possession, custody, or control of the defendant or any of its Related Entities, that are requested by the United States in connection with any Federal Proceeding; using its best efforts to secure the ongoing, full, and truthful
cooperation, as defined in Paragraph 13 of this Plea Agreement, of the current and former
directors, officers, and employees of the defendant or of any of its Related Entities as may
be requested by the United States (but excluding Hans Seidl, Christopher H. Groom, and
Jack L. Kulasa), including making these persons available in the United States and at
other mutually agreed-upon locations, at the defendant's expense, for interviews and for
the provision of testimony in grand jury, trial, and other judicial proceedings in
connection with any Federal Proceeding. 13.	The ongoing, full, and truthful cooperation of each person described in Paragraph
12(b) above will be subject to the procedures and protections of this paragraph, and shall include,
producing in the United States and at other mutually agreed-upon locations all documents, including claimed personal documents, and other materials, wherever located, requested by attorneys and agents of the United States in connection with any Federal Proceeding; making himself or herself available for interviews in the United States and at other mutually agreed-upon locations, not at the expense of the United States, upon the request of attorneys and agents of the United States; responding fully and truthfully to all inquiries of the United States in connection with any Federal Proceeding, without falsely implicating any person or intentionally withholding any information, subject to the penalties for making false statements (18 U.S.C. § 1001) and for obstruction of justice (18 U.S.C. § 1503); otherwise voluntarily providing the United States with any material or information not requested under (a) ­ (c) of this paragraph that he or she may have that is related to any Federal Proceeding; 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 for perjury (18 U.S.C. § 1621), for making false statements or declarations in grand jury or court proceedings (18 U.S.C. § 1623), for contempt (18 U.S.C. §§ 401-402), and for obstruction of justice (18 U.S.C. § 1503); and agreeing that, if the agreement not to prosecute him or her in this Plea Agreement is rendered void under Paragraph 15(c), the statute of limitations period for
any Relevant Offense as defined in Paragraph 15(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. GOVERNMENT'S AGREEMENT
14.	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 12 of this Plea Agreement, the United States agrees that it will not bring further
criminal charges against the defendant or any of its Related Entities for any act or offense
antitrust conspiracy involving the manufacture or sale of the Specified OP Products. 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.
Upon the Court's acceptance of the guilty plea called for by this Plea Agreement and the imposition of the Recommended Sentence, and subject to the exceptions noted in Paragraph 15(c), the United States will not bring criminal charges against any current or former director, officer, or employee of the defendant or of its Related Entities 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 or its Related Entities that was undertaken in furtherance of an antitrust conspiracy involving the manufacture or sale of the Specified OP Products (a "Relevant Offense"), except that the protections granted in this paragraph shall not apply to Hans Seidl, to Christopher H. Groom, or to Jack L. Kulasa; Should the United States determine that any current or former director, officer, or employee of the defendant or its Related Entities may have information relevant to any Federal 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 known by the United States to be represented, to the undersigned counsel for the defendant; If any person requested to provide cooperation under Paragraph 15(b) fails to comply with his or her obligations under Paragraph 13, then the terms of this Plea Agreement as they pertain to that person, and the agreement not to prosecute that person granted in this Plea Agreement, shall be rendered void; Except as provided in Paragraph 15(e), information provided by a person described in Paragraph 15(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), for making a false statement or declaration (18 U.S.C. §§ 1001, 1623), or for obstruction of justice (18 U.S.C. § 1503); 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 13 of this Plea Agreement, the agreement in Paragraph 15(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; 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; and Documents provided under Paragraphs 12(a) and 13(a) shall be deemed
responsive to outstanding grand jury subpoenas issued to the defendant or any of its
Related Entities. 16.	The United States agrees that when any person travels to the United States for
any Relevant Offense, to subject such person to arrest, detention, or service of process, or to
prevent such person from departing the United States. This paragraph does not apply to an
individual's commission of perjury (18 U.S.C. § 1621), making false statements (18 U.S.C. §
1623), obstruction of justice (18 U.S.C. § 1503), or contempt (18 U.S.C. §§ 401-402) in
connection with any testimony or information provided or requested in any Federal Proceeding. 17.	The defendant understands that it may be subject to administrative action by
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 and its Related Entities as a matter for that agency to consider before determining what
administrative action, if any, to take. REPRESENTATION BY COUNSEL
18.	The defendant has been represented by counsel and is fully satisfied that its
this Plea Agreement and acknowledges that counsel has advised it of the nature of the charge,
any possible defenses to the charge, and the nature and range of possible sentences.
19.	The defendant's decision to enter into this Plea Agreement and to tender a plea of
or representations other than the representations contained in this Plea Agreement and in the
Degussa Cooperation Agreement, filed separately with the Court. The United States has made no
promises or representations to the defendant as to whether the Court will accept or reject the
20.	The defendant agrees that, should the United States at any time determine in good
faith that the defendant or any of its Related Entities have failed to provide full and truthful
cooperation, as described in Paragraph 12 of this Plea Agreement, or has otherwise violated any
provision of this Plea Agreement, the United States will notify counsel for the defendant in
writing by personal or overnight delivery or by facsimile transmission of its intention to void any
or all of its obligations under this Plea Agreement (except its obligations under this paragraph),
and the defendant and its Related Entities shall be subject to prosecution for any federal crime of
relating to the investigation resulting in this Plea Agreement. The defendant may seek Court
review of any determination made by the United States under this Paragraph to void its
obligations under the Plea Agreement. The defendant and its Related Entities agree that, in the
event that the United States is released from its obligations under this Plea Agreement and brings
criminal charges against the defendant or its Related Entities for any offense referred to in
Paragraph 14 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. 21.	The defendant understands and agrees that in any further prosecution
of it or of its Related Entities resulting from the release of the United States from its obligations
under this Plea Agreement due to the defendant's or its Related Entities' violation of the Plea
Agreement, any documents, statements, information, testimony, or evidence provided by it, its
Related Entities, or current or former directors, officers, or employees of it or its Related Entities
to attorneys or agents of the United States, federal grand juries, or courts, and any leads derived
therefrom, may be used against it or its Related Entities 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 and the Degussa Cooperation Agreement, filed separately
with the Court, constitute the entire agreement between the United States and the defendant concerning the disposition of the criminal charge in this case. No modification of this Plea
Agreement shall be valid unless made in writing and signed by both the United States and the
23.	The undersigned is authorized to enter this Plea Agreement on behalf of the
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 United
States.	25.	A facsimile signature shall be deemed an original signature for the purpose of
DATED:______9/16/04________________	Respectfully submitted,
_______________/s/________________ John R. Pendergast	Senior Counsel	DEGUSSA U.K. HOLDINGS LTD. BY:
_______________/s/________________ Marc Siegel
_______________/s/________________ Michael F. Tubach, Esq.	Counsel for DEGUSSA U.K. HOLDINGS LTD. Attorneys
Box 36046, Room 10.0101
San Francisco, CA 94102 Tel.: (415) 436-6660	USA et al. Plaintiff,
v. Degussa U.K. Holdings Ltd. et al, Defendant.
Case Number CR04-00300 SI CERTIFICATE OF SERVICE
That on October 21, 2004, I SERVED a true and correct copy(ies) of the attached, by placing said copy(ies) in a postage paid envelope addressed to the person(s) hereinafter listed, by depositing said envelope in the U.S. Mail, or by placing said copy(ies) into an inter-office delivery receptacle located in the Clerk's office.
Michael F. Tubach O'Melveny & Myers LLP 275 Battery Street San Francisco, CA 94111-3344
Degussa U.K. Holdings Attn: John R. Pendergast, Jr., 23700 Chargin Blvd., Cleveland, OH 44122-5554
Richard W. Wieking, Clerk By: Tracy Suttdb, Deputy Clerk
DEGUSSA UK HOLDINGS LTD, a company registered in England and Wales under
company number 2895034, and whose registered office is at 66 Wigmore Street,
London, W1U 2HQ , (the "Company") herebyt grants a limited power of attorney to:
John R. Pendergast
23700 Chagrin Blvd., Cleveland, Ohio 44122
(hereinafter the "attorney-in-fact")
individually and with the right to delegate his limited power of attorney, to execute,
acknowledge and deliver and to make and to receive on behalf of the Company the
attached Plea Agreement with the U.S. Department of Justice regarding organic
peroxides (the "Agreement"). The attorney-in-fact shall have full authority to take any
other steps and such further acts as are deemed requisite or necessary by the attorney-in-fact to effect the Agreement.
All steps already taken by the attorney-in-fact in connection with the Agreement are
hereby expressly ratified. The rights, powers and authority of the attorney-in-fact granted herein
shall remain in full force and effect unless and until rescinded in a signed instrument by
the Company delivered this attorney-in-fact, or consummation of the underlying
transaction to which the Agreement relates, whichever first occurs.
In cases of doubt, this limited power of attorney shall be interpreted broadly to realize the
purpose of its granting.
This Power of Attorney shall be governed by the laws of England and Wales.
IN WITNESS WHEREOF, the Company has caused this Limited Power of Attorney to
be executed and delivered as a deed by the Company this 31st day of August 2004.
Degussa UK Holdings Limited
_______________/s/________________ Name:
Title: Director/Secretary