STOCK MARKET WATCH -- Thursday, 20 September 2012

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14. US DEMANDING HARSH PENALTIES FOR PRICE FIXERS

http://hosted.ap.org/dynamic/stories/U/US_PRICE_FIXING_SENTENCING?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-09-20-05-20-30

SAN FRANCISCO (AP) -- The U.S. Department of Justice is demanding that a "remorseless" Taiwanese company pay a $1 billion fine and two former top executives each serve 10 years in prison for their roles as central figures in what prosecutors called the most serious price-fixing cartel ever prosecuted by the U.S.

The proposed sentences would be the stiffest penalty ever meted out for price-fixing convictions if a federal judge adopts the DOJ's position at sentencing Thursday. The DOJ argues the sentences are necessary to punish a company that unfairly forced U.S. consumers to pay billions more than they should have for electronics and to deter others from engaging in price fixing.

The DOJ lawyers made the demands, which include $1 million fines for each of the executives, in court filings Tuesday. They are wrapping up a years-long investigation of a global price-fixing scheme that artificially increased the price of LCD screens used in televisions, computers and other electronic products made by Apple Inc., Dell Computers and many of the largest high-tech companies in the United States.

"The conspiracy affected every family, school, business, charity, and government agency that paid more to purchase notebook computers, computer monitors, and LCD televisions during the conspiracy," prosecutors concluded in arguing for the criminal penalties.