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Hynix Execs Head For Jail in DRAM Scandal

Mar 3, 2006
By

Roy Mark






Four Korean Hynix executives are heading to a U.S. jail for their roles in a global conspiracy to fix prices on dynamic random access memory (DRAM), a key type of memory found in most PCs.

The latest development comes after Hynix, the world's second-largest DRAM maker, pleaded guilty in the same case and agreed to pay a $185 million criminal fine last year.

In the ongoing Department of Justice (DoJ) investigation, four companies and nine individuals have been charged with fines totaling more than $731 million.


According to the DoJ, the four Hynix employees conspired with unnamed employees from other memory makers to fix the prices of DRAM sold to certain computer and server manufacturers in the United States, including Dell, Hewlett-Packard, Compaq, IBM, Apple and Gateway.

Hynix participated in the price-fixing conspiracy from 1999 to 2002 by participating in meetings, conversations and other communications in the United States and elsewhere, according to court documents.

The latest to plead guilty today were D.S. Kim, general manager of Hynix Worldwide Sales and Marketing; C.K. Chung, the company's director of Global Strategic Account Sales; K.C. Suh, Hynix's senior manager of Memory Product Marketing; and C.Y. Choi, general manager for Marketing and Sales Support in Hynix's German subsidiary.

Kim was sentenced to eight months of prison time; Chung, seven months; Suh, six months; and Choi, five months. In addition, each executive was fined $250,000 and agreed to cooperate in the international probe.

This article was first published on InternetNews.com. To read the full article, click here.


 

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