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Justice Department Charges Dairy Fresh Corp. and Three Individuals

Question:

Here is a press release from the U.S. Department of Justice.  U.S. Justice Department Charges Dairy Fresh Corp. and Three Individuals  with Milk Bid Rigging  To: National Desk  Contact: Department of Justice Press Office, 202-514-2007    WASHINGTON, April 8  – The Department of Justice Filed two felony informations against Dairy Fresh Corporation and four felony informations against three of its current or former employees in U.S. District Courts in Mobile, Alabama and Jackson, Mississippi, today, for their involvement in milk bid rigging conspiracies in Florida, Alabama and Mississippi.    Dairy Fresh, headquartered in Greensboro, Ala., participated in two separate conspiracies to rig bids on contracts to supply milk to county school boards in the Florida panhandle and south Alabama and to federal, state and local government institutions in Mississippi, the government charged.    The Alabama information charged Dairy Fresh with participating in a conspiracy to rig bids on contracts to supply milk to county school boards in the Florida panhandle and south Alabama, beginning at least as early as the early 1970’s and continuing at least through July 1988.      The Mississippi information charged Dairy Fresh with participating in a conspiracy to rig bids on contracts to supply dairy products to certain federal, state and local government institutions in Mississippi, beginning at least as early as 1977 and continuing at least through August 1988.      The Department also filed four felony informations charging the following with bid rigging while employed by Dairy Fresh:    – Willie Erwin Burt, president of Dairy Fresh Corporation, was charged in two separate informations with participating in the Alabama and Mississippi conspiracies.    – J.R. Dickinson, general manager of the Hattiesburg, Miss., plant of Dairy Fresh Corporation, was charged with participating in the Mississippi conspiracy.    – Paschal J. Miles, the former general manager of the Columbus, Miss., plant of Dairy Fresh Corporation, was charged with participating in the Mississippi conspiracy.      John W. Clark, Acting Assistant Attorney General in charge of the Antitrust Division, said the charges arose in connection with grand jury investigations in Mobile, Ala., and Jackson, Miss., into collusive practices by dairy products suppliers in those states.  Clark said the investigations, being conducted by the Division’s Atlanta Field office, are continuing.    The maximum penalty which may be imposed against a corporation convicted of a violation of the Sherman Act occurring prior to November 16, 1990, is a fine not to exceed the greatest of $1 million, twice the gross pecuniary gain derived from the crime, or twice the gross pecuniary loss caused to the victims of the crime.    The maximum penalty for an individual convicted of a Sherman Act violation occurring prior to November 16, 1990, is three years in prison and the greatest of a fine of $250,000, twice the gross pecuniary gain derived from the crime, or twice the gross pecuniary loss caused to the victims of the crime.  -0- —

Response:

Here is a press release from the U.S. Department of Justice. U.S. Justice Department Charges Dairy Fresh Corp. and Three Individuals with Milk Bid Rigging To: National Desk Contact: Department of Justice Press Office, 202-514-2007

       Is Southland (7-11’s parent) involved in this round?  Their dairy unit was previously convicted of price-fixing for school lunch milk. Caused them serious trouble with their liquor licences in many states, since the corporation became a felon.  They had to lobby to get the law changed to allow corporate felons to hold liquor licences.  Last I heard, Florida didn’t want to change the law, and was planning to yank all 7-11 liquor licences in the state.  But that was about two years ago. What’s the status now?                                         John Nagle

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