Archived Article: 1992 Pesticide Bid Rigging Scheme relating to Bio-Pesticides

Are Suppliers of products like Corn Gluten, Sarritor, Nematodes with the consent of certain Ministry Of Ontario Officials cornering the market by selling the only available Dubious Alternative Products to replace Federally Registered and legal (so called toxic) products the Ontario Government has banned?

In 1992 two companies were caught cornering the market with Bt for Gypsy Moth Control.

Pesticide firm faces collusion charge
[AM Edition]
Toronto Star – Toronto, Ont.
Author: CP
Date: Nov 4, 1992

OTTAWA (CP) – Federal lawyers laid charges against one Toronto- area company but granted immunity to another yesterday in an alleged bid-rigging scheme to sell insecticide to the Ontario and Quebec governments.
Francois Rioux, a federal lawyer, said Abbott has already made restitution to Ontario and Quebec of more than $2.1 million to cover proceeds of its involvement in bid rigging.

At issue were sales of bacillus thuringiensis, commonly known as Bt, a biological insecticide sold by Abbott under the brand name DiPel and by Chemagro under the name Futura XLV.

Insecticides (1993) – s. 45 & 46 – Guilty Pleas
Chemagro Limited and Sumitomo Canada Limited pleaded guilty under section 46 for implementing a foreign-directed conspiracy to share the chemical insecticide market in Canada from 1987 to 1988. The product was used by provincial forest agencies and private companies in Newfoundland and New Brunswick to control the spread of budworm and gypsy moth. The arrangement was between Sumitomo Chemical Co. Ltd. of Japan and Bayer AG of Germany, Chemagro’s parent company. Chemagro also pleaded guilty under section 45 for a market-sharing conspiracy with Abbott Laboratories in effect in 1990, also involving insecticide. Abbott was granted immunity from prosecution for having brought these matters to the Bureau’s attention, but consented to a prohibition order and to pay restitution totalling $2.122 million. Total fines in these two cases amounted to $3.25 million.

Lawn Care Industry Files Additional Charges Against the McGuinty Government
MONTREAL, Jan. 19 /CNW Telbec/ – Additional charges were filed today by Jeffrey Lowes, Director of Government Relations for M-REP Communications against the McGuinty Government.

Additional proceedings Under Section 504 of the Criminal Code were filed – against the Minister of the Environment, John Gerretsen and Senior Staff of the MOE – before a Justice of the Peace at the Kingston Provincial Court.

Mr. Lowes filed the additional charges upon a further review of the actions of the Province of Ontario in respect to the 2008 Cosmetic Pesticide Ban Act and Ontario Regulations 63/09. These actions alleged to have resulted in offences contrary to the Federal Competition Act (R.S., 1985, c.C-34) section 45 subsection 1(d) and section 380 subsections 2 of the Criminal Code (R.S., 1985, c. C-46).The alleged charges are against: “John Gerretsen, Dale Henry, Geoff Cutten, Wanda Michalowicz, Lorna Poff, and Violet vanWassenaer.

February 17th has been set for a hearing to set a date for Pre-Enquete hearing on all three charges.

M-REP Communications has been working with the industry across Canada and is headed to BC and Alberta and the end of the month to review a course of action for their industry.

Mr. Lowes expects to file additional charges against activists and municipal councilors in Ontario before heading out West at the end of the month.

Mr. Lowes is also currently reviewing the actions of MOE’s enforcement branch as it has come to his attention that they may be applying unwarranted pressure on members of the industry as a direct response to the filing of the first charge.

M-REP Communications is a consulting services firm that provides support through a network of companies in North America and the EU on environmental policy and communications.

For further information: Jeffrey Lowes, M-REP Communications Director of Government & Industrial Relations, direct (613) 483-7855, fax (514) 221-4176,