Price Fixing Scandal Rocks Refrigerant Compressor Industry

In a shocking turn of events, Danfoss Flensburg GmbH, a German subsidiary of the Danfoss Group, has agreed to plead guilty and to pay a $3 million criminal fine for its role in an international conspiracy to fix the prices of light commercial compressors.

According to a one-count felony charge filed on an unspecified date in U.S. District Court in Detroit, Danfoss Flensburg GmbH participated in a conspiracy to fix the prices of light commercial compressors sold in the United States and elsewhere from as early as October 14, 2004, and continuing until about September 6, 2007.

Refrigerant compressors take in low-pressure refrigerant, compress it and then pump out a high-pressure vapor, which condenses and subsequently cools devices such as water coolers and vending machines.

“The department’s investigation into the international conspiracy to fix the prices of refrigerant compressors is ongoing,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Antitrust Division. “We are committed to ensuring open and fair competition in the refrigerant compressors market.”

According to the charge, Danfoss Flensburg GmbH and co-conspirators carried out the conspiracy by agreeing during meetings and conversations to coordinate prices of light commercial compressors sold in the United States and elsewhere. As a part of the conspiracy, Danfoss Flensburg GmbH and co-conspirators exchanged information on sales of light commercial compressors to monitor and enforce adherence to the agreed-upon prices.

Danfoss Flensburg GmbH is charged with price fixing in violation of the Sherman Act, which carries a maximum $100 million fine for corporations. 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.

Danfoss Flensburg GmbH is the third company to be charged in the Antitrust Division’s investigation of the international conspiracy to fix the prices of refrigerant compressors. On November 15, 2010, Panasonic Corporation pleaded guilty and was sentenced to pay a $49.1 million criminal fine and on December 16, 2010, Embraco North America Inc. pleaded guilty and was sentenced to pay a $91.8 million criminal fine.

The Antitrust Division’s Cleveland Field Office and the FBI’s Detroit Field Office, Ann Arbor, Resident Agency are leading the ongoing investigation into the worldwide refrigerant compressors market. Anyone with information concerning price fixing in the refrigerant compressor industry should call the Antitrust Division’s Cleveland Field Office at 216-687-8400 or visit www.justice.gov/atr/contact/newcase.htm.

MORE FEDERAL CRIME NEWS

White Collar Crime

Almanzar Sanchez, Wire Fraud, Rhode Island 2010

Jan 15, 2010

White Collar Crime

Charging Whirlwind, Wire Fraud, North Dakota 1967

Jan 15, 1967

White Collar Crime

Clarence Roland, Deed Fraud, Texas 2024

Feb 9, 2023

White Collar Crime

Stephanie Nicole Summers, Wire and Securities Fraud, Georgia 2023

May 29, 2024