Executive Convicted and Sentenced to Nine Months Imprisonment for Price Fixing under the Competition Act

OTTAWA, September 17, 1999 — The Competition Bureau announced today that Mr. Russell Cosburn, former Vice President - Sales, Chinook Group Limited, of Toronto, Ontario, was sentenced to nine months imprisonment for his part in an extended international conspiracy to fix prices and allocate or share markets for choline chloride. This conviction and sentence arose from an ongoing investigation by the Competition Bureau.

Choline chloride, also known as vitamin B4, is an important additive used in the animal feed industry, primarily for chickens and pigs.

"I trust this conviction will send the clear message to business that the Competition Bureau will not tolerate any price fixing among suppliers to business," said Mr. Konrad von Finckenstein, Commissioner of Competition. "It is our policy to prosecute both the companies and senior executives involved in such offences."

In addition to fixing prices and allocating sales volumes in Canada, the conspiracy insulated a very significant proportion of the Canadian market from foreign competition. It also allowed Chinook to maintain its position as the dominant supplier in Canada.

The Superior Court of Ontario ordered Mr. Cosburn to serve the nine month term in the community, having regard to his age and on finding that he posed no risk of re-offending and no danger to the community. Mr. Cosburn was also ordered to perform 50 hours of community service.

Copies of the documents filed with the Superior Court of Ontario are available here:

Agreed Statement of Facts (PDF: 253 KB)
Indictment (PDF: 46 KB)

Certified copies may be obtained from the Court Registry (court file number 99/G30978).