LG, Sharp, Chunghwa Agree to Plead Guilty, Pay Total of $585 Million in Fines for Participating in LCD Price-Fixing Conspiracies

Three leading electronics manufacturers-LG Display Co. Ltd., Sharp Corp. and Chunghwa Picture Tubes Ltd.-have agreed to plead guilty and pay a total of $585 million in criminal fines for their roles in conspiracies to fix prices in the sale of liquid crystal display (LCD) panels, the Department of Justice announced. Of the $585 million in fines, LG will pay $400 million, the second highest criminal fine ever imposed by the Department's Antitrust Division.

Today's charges were filed in U.S. District Court in San Francisco. The companies have agreed to cooperate with the Department's ongoing antitrust investigation.

Thin-Film Transistor-Liquid Crystal Display (TFT-LCD) panels are used in computer monitors and notebooks, televisions, mobile phones, and other electronic devices. In 2006, the worldwide market for TFT-LCD panels was approximately $70 billion. Companies directly affected by the LCD price-fixing conspiracies are some of the largest computer, television and cellular telephone manufacturers in the world, including Apple, Dell and Motorola.

"Today's charges and criminal fines emphasize the commitment of the Department of Justice to crack down on international cartels," said Attorney General Michael B. Mukasey.

LG Display Co. Ltd, a South Korean corporation, and its wholly-owned subsidiary, LG Display America Inc., a California company (LG), agreed to plead guilty to participating in a conspiracy from September 2001 to June 2006 to fix the price of TFT-LCD panels sold worldwide. During the conspiracy, LG Display Co. Ltd. was known as LG.Philips LCD Co. Ltd. (a joint venture between LG Electronics and Philips Electronics) and LG Display America Inc. was known as LG.Philips LCD America Inc.

Sharp Corp., a Japanese consumer electronics manufacturer, has agreed to pay a $120 million fine for its participation in separate conspiracies to fix the price of TFT-LCD panels sold to Dell Inc. from April 2001 to December 2006 for use in computer monitors and laptops; to Motorola Inc. from fall 2005 to the middle of 2006 for use in Razr mobile phones; and to Apple Computer Inc. from September 2005 to December 2006 for use in iPod portable music players.

Chunghwa, a Taiwanese TFT-LCD panel manufacturer, has agreed to pay a $65 million fine for its participation with LG and other unnamed co-conspirators in a conspiracy from September 2001 to December 2006 to fix the price of TFT-LCD panels sold worldwide.

"These price-fixing conspiracies affected millions of American consumers who use computers, cell phones and numerous other household electronics every day," said Thomas O. Barnett, Assistant Attorney General in charge of the Department's Antitrust Division. "These convictions, and the significant fines they carry, should send a clear message that the Antitrust Division will vigorously investigate and prosecute illegal cartels, regardless of where they are located."

LG and Chunghwa are charged with carrying out the conspiracy by:

* Participating in meetings, conversations, and communications in Taiwan, Korea and the United States to discuss the prices of TFT-LCD panels;
* Agreeing during those meetings, conversations and communications to charge prices of TFT-LCD panels at certain pre-determined levels;
* Issuing price quotations in accordance with the agreements reached; and
* Exchanging information on sales of TFT-LCD panels, for the purpose of monitoring and enforcing adherence to the agreed-upon prices.

Sharp is charged with participating in three separate conspiracies, to fix the price of TFT-LCD panels sold to Dell, Motorola and Apple by:

* Participating in bilateral meetings, conversations, and communications in Japan and the United States to discuss the prices of TFT-LCD panels to be sold to Dell, Apple and Motorola;
* Agreeing during those bilateral meetings, conversations and communications to charge prices of TFT-LCD panels at certain pre-determined levels to Dell, Apple and Motorola;
* Issuing price quotations in accordance with the agreements reached; and
* Exchanging information on sales of TFT-LCD panels to be sold to Dell, Apple and Motorola, for the purpose of monitoring and enforcing adherence to the agreed-upon prices.

LG, Sharp and Chunghwa are each charged with price fixing in violation of the Sherman Act. Each violation carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

LG Display Co. Ltd., based in Seoul, South Korea, reported $15.3 billion in revenue for 2007.

Sharp, based in Osaka, Japan, reported $34.2 billion in revenues for its fiscal year ending March 31, 2008, including $6.8 billion in revenue from LCD sales.

Chunghwa, based in Taoyuan, Taiwan, Republic of China, reported $4.8 billion in revenue for 2007.

These pleas are the result of a joint investigation by the Antitrust Division's San Francisco Field Office and the Federal Bureau of Investigation in San Francisco. The plea agreements are subject to court approval.

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Oxendine Revokes Life Company's License, Fines Insurer $214,000

Insurance Commissioner John W. Oxendine announced recently that he has
revoked the certificate of authority of Trans World Assurance to operate in Georgia, and
has fined the company $214,000. In addition, the Commissioner has ordered the
company to refund monies collected from active duty members of the United States
Armed Forces related to products it has sold in Georgia since September 2007.

“Due to multiple violations of the state insurance code, I feel I have no option but
to revoke Trans World’s license to operate in the state,” Oxendine said. “What makes
these violations particularly egregious is that they targeted our men and women in
uniform.”

The Commissioner held a hearing May 5 and 6 of this year to investigate
allegations that the company sold a life insurance policy containing an illegal component
to military personnel between September 2007 and March 2008. The product, called
“Flexible Dollar Builder,” includes a provision known as an accumulation fund.
The Commissioner found that provisions of the accumulation fund violated Georgia’s
Military Sales Practices Regulation and the Unfair Trade Practices Act.

The company further violated regulations by selling life policies to service
members already covered under Service Members Group Life Insurance (SGLI) without
making the required assessment to determine whether the service member needed
additional life insurance.

Although the company may not sell new policies in Georgia, it must continue to
service existing contracts which were sold before September, 2007. The company must
also honor the contracts issued subsequent to September 1, 2007, until it has made the
refunds required by the order.

Actions Taken by the Georgia State Board of Used Motor Vehicle Dealers at its May 21 Meeting

The Georgia State Board of Used Motor Vehicle Dealers held its monthly meeting on Wednesday, May 21, 2008.

The Board voted to issue Final Decisions in the following cases:

Angel’s Auto World, Inc., Covington: A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

Cars & Trucks Unlimited, Moultrie: Fines totaled $2,000.
A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.
A $1,000 fine for four instances of failure to post FTC Buyer Guides on each vehicle offered for sale.

Collectorique, Tucker: A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

Exotic Enterprises, LaGrange:
A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.
A $1,000 fine for four instances of failure to post FTC Buyer Guides on each vehicle offered for sale will be waived, provided licensee submits Bills of Sale showing vehicle identification numbers purchased between April 4 and April 9, 2008.

Torres Auto Sales, Jesup: The Board voted to waive the citation.

The Board accepted Public Consent Orders in the following cases:

BNS Used Auto Car Sales, College Park: Fines totaled $2,500.
A $2,000 fine for two instances of failure to apply for titles in the retail purchaser’s name within 30 calendar days of the date of sale; and two instances of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.
A $250 fine for one possession of an open title.
A $250 fine for one instance of failure to submit application for address change within 30 days.

KSL Automotive LLC, Conyers: The Board voted to grant licensure by Consent Order with 12 months probation. Applicant is also required to report to the Board when criminal probation is completed.

Busy Bee Ventures, Atlanta: A $500 fine of failure to submit application for address change within 30 days.

DAJ Used Auto Sales, Inc., Atlanta: A $500 fine for aiding and abetting an unlicensed person in selling vehicles.

Addis Car Sales, Inc., Tucker: A $2,000 fine for eight instances of failure to post FTC Buyer Guides on each vehicle offered for sale.

Atlantic Auto Remarketing, Inc., Marietta: A $500 fine for one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

TCL Auto Sales, Gray: A $7,000 fine for seven instances of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

The Board approved Orders Accepting Fine Monies & Settling Inspection in the following cases:

Georgia Car Mart LLC, Roswell: A $1,250 fine for five instances of failure to post FTC Buyer Guides on each vehicle offered for sale.

Key Auto Sales, Inc., Buford: A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

Mint Condition Auto Sales, Inc., Decatur: A $1,000 fine for four instances of failure to post FTC Buyer Guides on each vehicle offered for sale.

Exotic Motors of Atlanta LLC, Decatur: A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

Albertsons Auto-Mart, Hiram: A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

Triple Z, Inc. d/b/a Pars Car Sales, College Park: A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

Jim’s Auto Sales, Marietta: Fines totaled $1,500.
A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.
A $500 fine for two instances of failure to post FTC Buyer Guides on each vehicle offered for sale.

Liberty Expressway Public Auto Auction, Albany: Fines totaled $2,500.
A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.
A $1,000 fine for four instances of failure to post FTC Buyer Guides on each vehicle offered for sale.
A $500 fine for one instance of failure to properly complete Finance Contract on financed vehicles.

World One Used Cars, Folkston: A $250 fine for one violation of failure to submit application for address change within 30 days of effective date of change.

Budget Of Bainbridge, Inc., Bainbridge: A $2,500 fine for ten instances of failure to post FTC Buyer Guides on each vehicle offered for sale.

Priority Automotive Group, Smyrna: A $1,000 fine for one instance of failure to apply for a title in the retail purchaser’s name within 30 calendar days of the date of sale; and one instance of failure to furnish appropriate documents required for tag transfer to the retail purchaser within 30 days of the purchase date.

The Board accepted Voluntary Cease & Desist Orders for the following individuals or businesses for unlicensed practice:

Raymond Moledo d/b/a Certified Transmission, Macon
Lolo Auto Sales, Inc., Decatur
Michael L. Williams, Lithonia
John Evans, Fairburn
Rukhsana Najam, Tucker
William Ralph Baker, Grovetown
Rufino Dominguez Barrera, Dalton
Noel Miller, Lithonia

The Georgia State Board of Registration for Used Motor Vehicle Dealers will hold its next meeting on Wednesday, July 23, 2008 at 10 a.m. at the Professional Licensing Boards in Macon.