Former BlueScope Steel executive Jason Ellis has been sentenced to eight months' imprisonment but might not actually end up spending any time in jail.
He was convicted by the NSW Local Court for inciting others to obstruct a price-fixing investigation by the Australian Competition and Consumer Commission (ACCC).
Mr Ellis will be released, without entering custody, provided he remains on "good behaviour" for two years and pays a $1,000 recognizance (or bond).
BlueScope's former general manager of sales and marketing was also hit with a punishment — a $10,000 fine.
Magistrate Jennifer Atkinson said Mr Ellis had committed a serious offence, and that "in all dealings [with the ACCC] a person needs to allow investigations to run properly, without any attempt to hinder investigations by officials".
The former executive incited two of his fellow BlueScope colleagues to give false evidence to the ACCC, regarding discussions they had at meetings with competing steel companies.
The competition watchdog was investigating allegations that, between September 2013 and June 2014, BlueScope and Mr Ellis attempted to induce various steel distributors in Australia and overseas manufacturers to enter arrangements containing a price-fixing provision.
The ACCC has since filed separate civil lawsuits against BlueScope and Mr Ellis, which remain before the Federal Court.
First person to be convicted
"This is the first time an individual had been charged with, and convicted of, inciting the obstruction of an ACCC investigation," its chairman Rod Sims said.
"Mr Ellis' attempts to stop us from doing our job, from investigating and prosecuting behaviour we believe breaches competition laws, did not deter us.
"Not only did we continue our investigation and take legal action against BlueScope and Mr Ellis for alleged cartel behaviour despite his efforts to obstruct us, we also referred the obstruction conduct to the CDPP [Commonwealth Director of Public Prosecutions] to consider prosecuting Mr Ellis."
Inciting the obstruction of a Commonwealth official in the performance of their functions is a criminal offence under the Commonwealth Criminal Code. It carries a maximum jail sentence of two years.
However, if a guilty plea is entered in the Local Court, the maximum prison term is one year.
