*NEWS*KATUN TO PAY $11MIL PENALTY

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*NEWS*KATUN TO PAY $11MIL PENALTY

 user 2004-02-09 at 10:00:00 am Views: 91
  • #5011
    Katun to pay $11 million penalty
    Bloomington-based Katun Corp. was found Guilty of 12 counts of fraud in federal court Friday and will pay $11 million in fines and restitution for illegally obtaining pricing information from competitors’ Web sites, keeping money owed to customers and engaging in deceptive practices to secure lower airline fares.

    The copier-parts Company had reached a plea agreement with federal officials Jan. 13. The agreement was approved Friday by U.S. District Judge Paul Magnuson in St. Paul. The penalty being imposed on the company is the largest ever assessed against a Minnesota operation, topping the $9.1 million Ashland Petroleum paid for violations related to its St. Paul Park refinery in 2002.

    Katun lawyer Chris Madel had said earlier that he expects the $11 million will be paid by former CEO T. Michael Clarke and other previous owners of the company under an escrow agreement made when Katun was sold in 2002.