Former Showa Corporation executive Akira Wada, a manager at the company from at least 2003 until 2009, has been indicted for his role in a conspiracy to fix prices of pinion-assist type electric powered steering assemblies. Wada, who later became a director and operating officer at Showa, allegedly participated in a scheme to allocate markets and fix prices of the parts sold to Honda in the United States and elsewhere.
The indictment, filed in the U.S. District Court for the Southern District of Ohio, charges Wada with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry. Showa, a Japanese company based in Saitama, Japan, pleaded guilty in 2014 and agreed to pay a $19.9 million criminal fine for its role in the conspiracy.
Wada’s indictment is the latest in a string of charges brought in the government’s ongoing investigation into market allocation, price fixing and bid rigging in the auto parts industry. A total of 44 individuals have been charged, including 26 who have pleaded guilty and been sentenced to prison terms ranging from one year and one day to two years.
The investigation, which is being conducted by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office, has also resulted in 29 companies pleading guilty or agreeing to plead guilty and paying a total of nearly $2.4 billion in fines.
Wada faces up to 10 years in prison and a $1 million criminal fine for his role in the conspiracy, which carries a maximum penalty under the Sherman Act.
The Antitrust Division’s Assistant Attorney General, Bill Baer, said that the indictment demonstrates that antitrust violations are not just corporate offenses, but also crimes committed by individuals who seek to maximize profits by harming consumers.
Those with information on price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry are encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
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Key Facts
- State: Ohio
- Category: White Collar Crime|Organized Crime|Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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