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SCUBA DIVING PAGE ONE :: WORLD NEWS :: INDUSTRY

Prosecutors announce settlement in Catalina Diver Supply scuba price-fixing scam

by LAMAR BENNINGTON @ CDNN - Cyber Diver News Network

February 22, 2010

CATALINA ISLAND, California — A former scuba diving tour operator accused of price-fixing has agreed to pay a fine of $11,000.

Authorities told CDNN that John W. Mello, former owner of Catalina Diver Supply on Catalina Island, was accused of colluding with Robert Kennedy, owner of Scuba Luv, to scam dive consumers by fixing prices for scuba diving tours at Catalina Island.

The Los Angeles County District Attorney's Office said Mello agreed to pay a total of $11,000 in monetary relief, consisting of $4,000 in civil penalties, $5,000 in legal and investigative costs, and $2,000 in restitution for antitrust injury to a competitor business harmed by the unlawful conduct.

The case was a "textbook example of attempted price fixing, among the most egregious forms of anti-competitive conduct," according to Deputy-in-Charge of the Office's Antitrust Section, Kathleen Tuttle, who handled the matter.

In addition to costs and penalties, the parties agreed to injunctive terms that prohibit Mello from engaging in any conduct involving fixing or attempted fixing of prices in the scuba diving business, soliciting or coercing other business competitors to agree to fix prices and, engaging in any acts of unlawful competition in violation of California's Unfair Competition Law and its Cartwright Act antitrust statute.

Under the terms of a settlement approved by a Superior Court judge, Mello is barred from engaging in any conduct involving fixing or attempted fixing of prices in the scuba diving business, soliciting or coercing other business competitors to agree to fix prices and, engaging in any acts of unlawful competition in violation of California's Unfair Competition Law and its Cartwright Act antitrust statute.

"Cases like this serve as a reminder to businesses in general that laws against collusion and price fixing must be taken seriously and will be vigorously enforced," Tuttle said.

 

Prosecutors announce settlement in Catalina Diver Supply scuba price-fixing scam
Prosecutors said John Mello, the former owner of Catalina Diver Supply in Avalon, will pay $11,000 to end a lawsuit in which he was accused of colluding with Robert Kennedy, owner of Scuba Luv, to scam dive consumers by fixing prices for scuba diving tours to Catalina Island.

 

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