Cartel Digest

Marine Construction and Transportation

Marine Construction and Transportation
  Overall Cartel Period 1990-1997
  Participants HeereMac v.o.f.; Dockwise NV; Dockwise U.S.A.
  Total Fines (DOJ) $65 million
  Total Fines (EC) No fines imposed

In 1997, the U.S. Department of Justice (“DOJ”) imposed $65 million in fines on three companies for their participation in a conspiracy to rig bids for heavy-lift marine construction services and semisubmersible heavy-lift transport services.  At the time, this was the second largest criminal competition fine ever imposed by the DOJ.  Heavy-life marine construction services facilitate the construction of offshore oil and gas production and drilling platforms.  Semisubmersible heavy-lift transport vessels move large cargo.  In 1996, worldwide revenues in this industry exceeded $200 million.  Although these industries are related, the charges arose from two separate investigations into the construction services industry.

 

Enforcement Highlights:

  • One of the companies charged in the conspiracy, Dockwise N.V., also agreed to pay $4 million in civil damages to the U.S. Navy arising from contracts in connection with cartel activity.
  • Three executives were fined for their participation in the conspiracy.  None served any prison time.
Company Conspiracy Period Fine (USD) Plea Date No. of Excluded Individuals Plea Agreement
HeereMac v.o.f. 1/93-1/97 $49 million 12/22/1997 N/A  
Dockwise NV 1/90-1/95 $15 million 12/22/1997 N/A  
Dockwise U.S.A. 1/90-12/95 $1 million 12/22/1997 N/A  
Individual Company Prison Sentence Fine (USD) Plea Date Plea Agreement
Jan Meek, Commercial Director HeereMac v.o.f. None $100,000 12/22/1997  
Christiaan Bernardus van der Zwan, President Dockwise NV None $150,000 12/22/1997  
Bastiaan Albertus de Jong, General Manager Commercial Department Dockwise NV None $75,000 12/22/1997