Global LCD Price Fixing Ring Busted: Four Execs Face Jail Time

Federal prosecutors have dismantled a global LCD price-fixing conspiracy that has seen four executives agree to plead guilty and serve jail time. The scandal, which spans over five years from September 2001 to June 2006, involved the manipulation of TFT-LCD panel prices by LG Display Co. Ltd. and Chunghwa Picture Tubes Ltd.

Chang Suk ‘C.S.’ Chung, a Korean LG executive, Chieng-Hon ‘Frank’ Lin, a Taiwanese ex-Chunghwa CEO, and current employees Chih-Chun ‘C.C.’ Liu and Hsueh-Lung ‘Brian’ Lee were charged with colluding to suppress competition and rig prices. The four executives face substantial prison sentences and fines for their roles in the scheme.

According to charges filed in San Francisco, the conspirators met across Taiwan, South Korea, and the United States to discuss and agree on TFT-LCD panel pricing. They issued price quotations and shared information to enforce adherence to these predetermined levels, affecting billions of dollars in the worldwide market for TFT-LCD panels.

This landmark case marks the first time Taiwanese nationals have faced imprisonment in the U.S. for an antitrust offense. Deborah A. Garza, Acting Assistant Attorney General for the Antitrust Division, emphasized the commitment to holding all conspirators accountable, regardless of location or jurisdiction.

Chung has agreed to a seven-month sentence and a $25,000 fine, while Lin faces nine months in jail and a $50,000 penalty. Liu and Lee are each sentenced to serve six months with fines of $30,000 and $20,000 respectively. The investigation is ongoing.

Scott D. Hammond, Deputy Assistant Attorney General for Criminal Enforcement, highlighted this as the first guilty plea in their active probe into antitrust violations in the TFT-LCD industry, underscoring the feds’ dedication to justice in the tech sector.

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