Former Steel Distributor Exec Pleads Guilty to Price-Fixing

A former executive of a steel distributor in San Juan, Puerto Rico has pleaded guilty to conspiring with competitors to fix prices for reinforcing bar (rebar).

According to the U.S. Department of Justice, Juan Carlos Aponte Tolentino (Aponte), who served as Interim President of the company, admitted to colluding with rival firms to control prices in Puerto Rico’s wholesale rebar market, which his company and two others dominated, holding a 70% market share.

An Aug. 7 DoJ news release said the conspiracy, which lasted from 2015 to 2022, affected more than $100 million in sales, including during the critical reconstruction period following Hurricanes Irma and Maria in 2017. Aponte and his competitors communicated through WhatsApp to set and adjust rebar prices, harming consumers and businesses on the island.

“In pleading guilty, this defendant admitted to fixing prices — for nearly a decade — on rebar, an essential part of the supply chain for the reconstruction of Puerto Rico following the 2017 hurricanes,” the Justice Department’s Antitrust Division Deputy Assistant Attorney General Manish Kumar said in the DoJ’s news release.

Aponte’s actions violated the Sherman Act, a federal antitrust law that prohibits monopolistic practices like price-fixing. This felony charge carries severe penalties, including up to 10 years in prison and a $1 million fine for individuals, according to the DoJ. Corporations involved can face fines up to $100 million or twice the gain or loss associated with the crime, whichever is greater.

“We are satisfied with the outcome in this case as it sends a clear message that price-fixing and taking advantage of communities in crisis will not be tolerated,” FBI San Juan Field Office Special Agent in Charge Joseph Gonzalez said.

Aponte’s sentencing is scheduled for Nov. 8.