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The Honolulu Advertiser
Posted on: Tuesday, July 22, 2008

Allied Freight, SIRVA pay extra in settlement

Advertiser Staff

Allied Freight Forwarding and its parent company, SIRVA, have paid additional settlement money stemming from a 2006 case that alleged they conspired with other freight forwarders to bid-rigging in the transport of Department of Defense household goods between the Mainland and Hawai'i.

The U.S. Department of Justice yesterday announced a settlement with SIRVA to resolve civil claims against Allied Freight Forwarding in connection with its 2006 guilty plea on criminal antitrust charges.

The Justice Department said Westmont, Ill.-based SIRVA agreed to pay $432,598 to settle allegations, including other claims that bid rigging took place in carrying household goods between Europe and the U.S.

"These settlements reflect the United States' determination to combat schemes that undermine the integrity of the military's right to acquire services at a competitive price," said Gregory Katsas, acting assistant attorney general, in a press statement.

In 2006, Allied had agreed to pay $1.04 million in pleading guilty to charges of bid rigging in transporting household goods of military and civilian Department of Defense personal between Europe and the United States and between the Mainland and Hawai'i.

At that time the Justice Department said Allied conspired with three U.S. freight forwarders in 2000 and 2001 to file rates with the Department of Defense.

The Justice Department said under the scheme Allied agreed to service shipments awarded to its three conspirators and had paid the three for the shipments.