Enforcers Marine Hose-Deal Described as a "Scam"

"The American Bar Association's spring meeting saw disagreement on its first day, as enforcement officials and antitrust lawyers discussed parallel criminal proceedings against executives.

The debate focused on a pact agreed between the Department of Justice in the US and the Office of Fair Trading in the UK, over how to treat individuals connected with the international marine hose cartel. Three UK executives have been charged in the US over the alleged offence, and have been allowed to settle the matter on novel terms.

...James Mutchnik, from Kirkland & Ellis LLP, and a defence lawyer in the case, says such agreements are an 'arranged legal scam' because the 'real UK sentences,' even if they were to meet the ones imposed in the US, would be significantly lower due to the way the justice system works in the UK. The deal is 'not what it seems,' he says."

This article appeared in its entirety in the March 27, 2008 edition of Global Competition Review.