Juan Carlos Aponte Tolentino, the former Interim President of a prominent steel distributor in San Juan, Puerto Rico, has admitted to engaging in a protracted price-fixing conspiracy. This admission comes after an eight-year period during which Aponte and his associates manipulated the prices of reinforcing bar (rebar), a critical material for construction projects across the island.
Court documents reveal that Aponte, hailing from Bayamon, Puerto Rico, was instrumental in orchestrating this scheme between 2015 and 2022. The conspiracy included the critical period following Hurricanes Irma and Maria in 2017, times when demand for rebar surged due to widespread reconstruction efforts. Aponte's company, alongside two other major competitors, controlled roughly 70% of the wholesale rebar market in Puerto Rico.
The conspiracy involved detailed communications, often via WhatsApp, where Aponte and his competitors coordinated prices. In one notable exchange in December 2020, an executive from a rival company provided Aponte with the price of Turkish rebar. Aponte responded with specific pricing tiers and sought confirmation, to which the competing executive agreed, demonstrating the explicit collusion to fix prices.
This illicit coordination led to substantial profits for the conspirators at the expense of consumers and businesses. The plea agreement indicates that more than $100 million in sales by Aponte’s company were affected by the conspiracy. This manipulation had far-reaching impacts, especially on the local economy struggling to recover from natural disasters.
Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division emphasized the gravity of the offense. He highlighted that Aponte’s guilty plea underscores the Antitrust Division’s dedication to prosecuting individuals who undermine market competition, particularly in vulnerable communities. The Division, along with the FBI San Juan Field Office, remains vigilant in combating anticompetitive practices that harm both consumers and businesses.
Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office expressed satisfaction with the outcome, reinforcing that the FBI will continue to disrupt illegal practices that exploit crises. This case exemplifies the serious consequences of violating the Sherman Act, a federal criminal antitrust statute. Individuals found guilty can face up to 10 years in prison and a $1 million criminal fine, while corporations may face fines up to $100 million or more, depending on the financial impact of the crime.
Aponte's sentencing is scheduled for November 8, where a federal district court judge will determine his penalty, considering the U.S. Sentencing Guidelines and other statutory factors. The Antitrust Division’s Washington Criminal Section, with assistance from the FBI San Juan Field Office, conducted the investigation. The prosecution team includes Trial Attorneys April Ayers-Perez, Alison Friberg, and Taylor Bernhardt, along with Senior Litigation Counsel John Davis.
