A South Carolina manager of a bovine artificial insemination (AI) firm pleaded guilty in early August to rigging bids for the purchase of cattle used for semen production.
Herbert D. Lutz of Chester, SC, pleaded guilty to conspiring to rig bids from October 2018 through May 2024, conspiring with others on who would win the bid at cattle auctions.
“Through the efforts of Lutz and his co-conspirators, Lutz’s employer was able to acquire cattle worth over $1.6 million through rigged sales,” according to the Department of Justice.
Lutz is the first defendant to be charged and to plead guilty in violation of the Sherman Act in the ongoing investigation. He faces a maximum penalty of 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine. A federal district court judge will determine Lutz’s sentence.
The AI company Lutz represented was unnamed.
