Herbert D. Lutz, a 56-year-old manager from Chester, South Carolina, has pleaded guilty to conspiring to rig bids for cattle purchases used in the bovine artificial insemination sector. This conspiracy reportedly spanned from October 2018 to May 2024, during which Lutz and his co-conspirators coordinated their bids ahead of cattle auctions.

In these auctions, the involved parties agreed on which company would win the bid, with the losing firm either refraining from bidding or submitting a deliberately low bid. This collusion allowed Lutz's employer to acquire cattle valued at over $1.6 million through these rigged sales.

Officials from the Department of Justice emphasized the negative impact of such collusion on both consumers and producers, stating that it leads to inflated food prices. The Antitrust Division is committed to prosecuting such offenses to maintain fair pricing in the agricultural sector.

Lutz is the first individual charged in this ongoing investigation, facing a potential maximum sentence of 10 years in prison and a $1 million fine. The case is being prosecuted by the Antitrust Division’s Chicago Office, with support from the Department of Agriculture's Office of Inspector General.