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[greenyes] Cleveland Scrap Dealer Accused of Price Fixing



THE WALL STREET JOURNAL

March 4, 2005 2:25 p.m. EST

U.S. BUSINESS NEWS




Scrap Dealer Pleads Guilty
To Bid-Rigging Conspiracy
By PAUL GLADER

A scrap dealer who owns two Cleveland scrap yards has pleaded guilty to
government charges of price-fixing and bid-rigging this week, according to
the Department of Justice office in Cleveland.
As part of the plea agreement filed Tuesday, Jack Weingold, who owns M.
Weingold & Co. and Harry Rock & Associates, could be imprisoned for 13
months and pay a $700,000 fine. His companies will each pay a $5.65 million
fine for a total of $11.3 million. An employee, Loren Margolis, also pleaded
guilty and under the plea agreement could pay as much as $700,000 and spend
10 to 12 months in prison. One of the companies also pleaded guilty to wire
fraud. Attorneys for the defendants weren't immediately available for
comment.
Prosecutors claimed in court documents the companies arranged numerous
secret meetings in the 1990s with other scrap dealers, where the parties
agreed not to compete with each other in buying scrap from manufacturers.
Such an agreement impacted the prices paid on scrap metal worth hundreds of
millions of dollars to the manufacturers, according to prosecutors.
The Department of Justice office in Cleveland says the defendants have
agreed to "cooperate with the ongoing investigation" into scrap-metal
dealers that has involved several cases in Cleveland and has extended to
Florida and Indiana in recent years.
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_________________________
Peter Anderson, President
RECYCLEWORLDS CONSULTING
4513 Vernon Blvd. Suite 15
Madison, WI 53705-4964
Ph: (608) 231-1100
Fax: (608) 233-0011
Cell: (608) 698-1314
eMail: anderson@no.address
web: www.recycleworlds.net





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