Jail Time for Price-Fixing Executive

Hollywood may try to capture big business' dirty dealings. But fiction can't compete with real life.

An exec of Qantas Airways is the first person to be charged with being involved in a global price-fixing conspiracy under investigation by the Justice department and the FBI.

Bruce McCaffrey, the former vice president of Qantas Freight of Americas, has plead guilty to all charges, the Justice Department said today. His plea agreement, which is pending court approval, includes eight months in prison and a fine of $20,000.

This doesn't bode well for any co-conspirators hoping to get off with a mere fine.

"Today's guilty plea demonstrates that our ongoing investigation into the air transportation industry will hold individuals, as well as corporations, responsible for engaging in criminal conduct," said Assistant Attorney General Thomas O. Barnett, who's in charge of the Justice Department's antitrust division.

McCaffrey and other co-conspirators have been accused of fixing rates charged to American and international customers for various air cargo shipments from January 2000 to February 2006. The rates included the base rate and surcharges for things like fuel and post-September 11 security.

Starting with British Airways last summer, several airlines have already settled charges that they participated in the conspiracy. In addition to BA, Japan Airlines, Korean Air Lines, and McCaffrey's former employer, Qantas, have all settled.

by Jennifer Lai