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.