CINCINNATI -- A Cincinnati packaged-ice manufacturer has pleaded guilty to allocating packaged-ice customers and territories, the Department of Justice said. The Home City Ice Co. pleaded guilty in U.S. District Court in Cincinnati to conspiracy. Under the terms of the plea agreement, which is subject to court approval, Home City Ice has agreed to cooperate in the ongoing investigation.
According to the charge, Home City Ice participated in a conspiracy to suppress and eliminate competition by allocating packaged-ice customers and territories in the Detroit metropolitan area and southeastern [image-nocss] Michigan. The conspiracy began at least as early as Jan. 1, 2001, and continued until on or about July 17, 2007.
Packaged ice is marketed to convenience stores, gas stations and other retail outlets as high-grade ice for consumption and is sold in varying size bags and blocks. Home City Ice is a manufacturer of packaged ice with multiple locations throughout the United States.
"Customer and territorial allocation conspiracies such as this one harm the competitive process," said Thomas O. Barnett, assistant attorney general in charge of the Justice Department's Antitrust Division. "This type of conduct deprives consumers of the benefits of free and open competition."
According to the charges, Home City Ice and co-conspirators carried out the conspiracy by participating in meetings and conversations to discuss packaged-ice customers and territories in southeastern Michigan and the Detroit metropolitan area; agreeing during those meetings and conversations to allocate packaged-ice customers and territories in southeastern Michigan and the Detroit metropolitan area; exchanging information during those meetings and conversations, for the purpose of monitoring and enforcing adherence to the agreements to allocate customers and territories in southeastern Michigan and the Detroit metropolitan area; and refraining from competing for packaged-ice customers and territories that were so allocated.
Home City Ice is charged with allocating packaged-ice customers and territories in violation of the Sherman Anti-TrustAct, which carries a maximum fine of $100 million for a corporation. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This case is the first to arise from an ongoing investigation into the packaged-ice industry. The investigation is being conducted by the Antitrust Division's Cleveland Field Office and by FBI offices in Ann Arbor, Mich.; Indianapolis; and Cincinnati and Toledo, Ohio.
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