Prison sentences, $42 million fine for Odfjell in DOJ market-fixing case
The Norwegian chemical tanker group Odfjell ASA and its senior executives have agreed to a fine of $42.5 million for the company and prison sentences of three to four months for two of its executives as part of a plea bargaining with the U.S. Department of Justice concerning market-fixing.
Odfjell ASA’s wholly owned subsidiary Odfjell Seachem AS has agreed to plead guilty to a violation of the U.S. Sherman Antitrust Act for “allocating customers” and thereby fixing prices on certain contracts of affreightment from 1998 to 2002.
The huge $42.5 million fine will be paid by Odfjell over five years in instalments of $8.5 million annually. The fine will be recorded as an extraordinary item in the financial statements in the third quarter of this year, the company said.
Under the deal with the Department of Justice, Bj'rn Sjaastad, president and chief executive officer of the company, has agreed to incarceration in the U.S. for four months and a fine of $250,000. Erik Nilsen, vice president, has agreed to incarceration for three months and a fine of $25,000.
However, Odfjell will reimburse the individual fines of its senior executives, and pay their salaries during “a salaried leave of absence” during their prison terms.
Terje Storeng has been appointed interim CEO and president, effective today (Sept. 30).
Odfjell said that it has strengthened its competition compliance program and guidelines.
Odfjell, which is also facing competition proceedings by the European Commission, said that various private lawsuits, asserting “class action” claims on behalf of customers, have been
filed in the U.S. against Odfjell and three other major parcel chemical tanker carriers — Stolt-Nielsen, Tokyo Marine and JO Tankers.
“Because these matters are still at an early stage, we are unable to give further information for the time being,” the Norwegian company said.