Taubman is founder of Taubman Centers Inc., which owns and/or manages 28 urban and suburban regional and super regional shopping centers in 12 states. His son, Robert Taubman, is president and CEO of the company.
During the six-year international conspiracy, Sotheby's and Christie's charged sellers in the United States at least $400 million in commissions.
They together control more than 90% of the world's live auctions of works of art, jewelry and furniture. They provide substantially the same services to sellers and, prior to the introduction of the fixed, non-negotiable commission rates, they competed primarily on the basis of price, undercutting each other's offers to sellers.
Officials from the Justice Department said as a result of the conspiracy, sellers lost their principal bargaining tool.
"This case will show that these individuals mastered the art of price fixing," says James M. Griffin, deputy assistant attorney general in charge of the department's criminal antitrust enforcement program. "The antitrust division will vigorously prosecute price fixing wherever it occurs."
The indictment charges Taubman and Tennant with:* participating in meetings and conversations in the US and elsewhere todiscuss sellers' commission rates;
* agreeing to raise prices by fixing sellers' commission rates;
* agreeing to publish non-negotiable sellers' commission rate schedules;
* agreeing to the order in which Christie's and Sotheby's would publish their non- negotiable sellers' commission rate schedules;
* issuing sellers' commission rate schedules in accordance with the agreement reached;
* exchanging customer information for the purpose of monitoring and enforcing adherence to the non-negotiable sellers' commission schedules;
* agreeing on other terms relating to prices charged to sellers.
In October 2000, Sotheby's and its former CEO, Diana D. Brooks, pleaded guilty to separate charges of fixing auction commission rates charged to sellers. Sotheby's has been sentenced to pay a $45-million fine. Brooks has not been sentenced.
Taubman and Tennant are charged with violating Section One of the Sherman Act which carries a maximum penalty of three years imprisonment and a $350,000 fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Taubman says he is surprised and deeply disappointed by the charges.
"I am absolutely innocent, and have stated from the beginning of this investigation that whatever Dede Brooks chose to do, she did on her own and without my authorization," he said. "As confirmed by the lie detector test I have taken, the truth is on my side. While any trial is difficult, I look forward to the opportunity to clear my name in court."
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