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Important information

• Pending Government Action:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  3:21-cr-00220-VAB All Defendants USA v. Patel et al
  

  As of February 18, 2022

  A federal grand jury in Bridgeport, Connecticut, returned an indictment yesterday charging a former manager of a major aerospace engineering company and five executives of outsource engineering suppliers (Suppliers) for participating in a long-running conspiracy to restrict the hiring and recruiting of employees among their respective companies. The conspiracy affected thousands of engineers and other skilled workers in the aerospace industry who perform services in the design, manufacturing and servicing of aircraft components for both commercial and military purposes.

  According to the one-count felony indictment unsealed today in the U.S. District Court for the District of Connecticut, six individuals — Mahesh Patel, of Connecticut; Robert Harvey, of South Carolina; Harpreet Wasan, of Connecticut; Steven Houghtaling, of Connecticut; Tom Edwards, of Connecticut; and Gary Prus, of Florida — conspired with unnamed others to allocate employees by agreeing not to hire or solicit employees from each other’s companies.

  This indictment is the first in an ongoing investigation into labor market allocation in the aerospace engineering services industry. Patel, described as a leader of the conspiracy given his position and authority as the Suppliers’ common customer, was previously charged by complaint. He was arrested and appeared before a federal magistrate judge on the charge last week, and was released on a $100,000 appearance bond. The remaining defendants are expected to appear before federal district courts in different districts this week.

  According to the indictment, the defendants and co-conspirators recognized the mutual financial benefit of the conspiracy — namely, reducing the rise in labor costs that would occur when aerospace workers were free to find new employment in a competitive environment. Patel and certain other co-conspirators explicitly appealed to this financial benefit when communicating with each other about the agreement.

  The charges are the result of an ongoing federal antitrust investigation into labor market allocation in the aerospace engineering services industry, conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, and the New Haven and New York Resident Agencies of DCIS. Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit
  http://www.justice.gov/atr/report-violations.

  An indictment merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

  LINK:

  As of February 18, 2022

  A federal grand jury in Bridgeport, Connecticut, returned an indictment yesterday charging a former manager of a major aerospace engineering company and five executives of outsource engineering suppliers (Suppliers) for participating in a long-running conspiracy to restrict the hiring and recruiting of employees among their respective companies. The conspiracy affected thousands of engineers and other skilled workers in the aerospace industry who perform services in the design, manufacturing and servicing of aircraft components for both commercial and military purposes.

  According to the one-count felony indictment unsealed today in the U.S. District Court for the District of Connecticut, six individuals — Mahesh Patel, of Connecticut; Robert Harvey, of South Carolina; Harpreet Wasan, of Connecticut; Steven Houghtaling, of Connecticut; Tom Edwards, of Connecticut; and Gary Prus, of Florida — conspired with unnamed others to allocate employees by agreeing not to hire or solicit employees from each other’s companies.

  This indictment is the first in an ongoing investigation into labor market allocation in the aerospace engineering services industry. Patel, described as a leader of the conspiracy given his position and authority as the Suppliers’ common customer, was previously charged by complaint. He was arrested and appeared before a federal magistrate judge on the charge last week, and was released on a $100,000 appearance bond. The remaining defendants are expected to appear before federal district courts in different districts this week.

  According to the indictment, the defendants and co-conspirators recognized the mutual financial benefit of the conspiracy — namely, reducing the rise in labor costs that would occur when aerospace workers were free to find new employment in a competitive environment. Patel and certain other co-conspirators explicitly appealed to this financial benefit when communicating with each other about the agreement.

  The charges are the result of an ongoing federal antitrust investigation into labor market allocation in the aerospace engineering services industry, conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, and the New Haven and New York Resident Agencies of DCIS. Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit
  http://www.justice.gov/atr/report-violations.

  An indictment merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

  LINK: https://www.justice.gov/usao-ct/pr/six-aerospace-executives-and-managers-indicted-leading-roles-labor-market-conspiracy-1

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