Criminal charges have been laid in a chocolate price-fixing case against market leader Nestlé Canada Inc. and others, Canada’s competition watchdog announced Thursday.

Mars Canada Inc. and the national distribution network Itwal Ltd. have also been charged, along with three senior industry executives, the federal Competition Bureau said.

The charges cap a bureau investigation lasting more than five years into Canada’s multibillion dollar a year candy industry. None of the allegations has been proven in court.

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“Price-fixing is a serious criminal offence and today’s charges demonstrate the Competition Bureau’s resolve to stop cartel activity in Canada,” John Pecman, interim commissioner of competition, said in a statement.

A fourth company, Hershey Canada Inc., is expected to plead guilty on June 21 for its role in the alleged conspiracy to fix the price of chocolate confectionery products in Canada, the bureau said.

Two former senior executives at Nestlé and the current chief executive of Brampton-based Itwal were also charged, the independent law enforcement agency said.

The individuals named are Robert Leonidas, a former president of Nestlé Canada; Sandra Martinez, a former president of confectionery for Nestlé Canada; and David Glenn Stevens, president and chief executive officer of ITWAL.

Mars Canada, Nestlé Canada and a lawyer for Leonidas all said they intend to defend themselves against the charges. “This matter has been in the public domain since late 2007. Mr. Leonidas looks forward to his day in court where we intend to vigorously defend against these allegations,” lawyer Jay Naster, of Rosen Naster LLP, said in an email.

ITWAL chief executive Ross Robertson told the Star Wednesday evening that the company “has always carried on its business for the benefit of its member distributors in full compliance with all Canadian laws” and that it and Stevens “strongly deny the bureau’s allegations and intend to vigorously defend the charges.”

In a separate statement, Hershey Canada said it will plead guilty to one count of price fixing related to communications with competitors in 2007.

Hershey Canada said it promptly reported the alleged conduct to the Competition Bureau, co-operated fully with its investigation and did not put in place the planned price increase, which was the subject of the 2007 communications

The bureau, which said it became aware of the alleged conduct through its immunity program, has recommended that Hershey receive lenient treatment for co-operating with the investigation.

The investigation uncovered evidence suggesting the accused conspired, agreed or arranged to fix prices of chocolate products, the federal watchdog said in a statement.

The allegations cover a period from 2002 to 2008, a bureau spokesperson said.

Court documents unsealed in December, 2007, allege senior executives at Hershey, Mars and Nestlé met secretly in coffee shops and restaurants and at industry conventions to set prices.

The documents allege the chief executive of Nestlé Canada handed envelopes stuffed with pricing information to a competitor, instructing the person not to be seen picking up the material in his office.

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The maximum penalties under the act in force at the time the alleged conduct occurred were $10 million and/or five years in prison, the bureau said. The penalties have since been increased to $25 million and/or 14 years in prison.

Class-action lawsuits filed against the companies in connection with the price-fixing allegations resulted in settlements of more than $22 million, according to Siskinds, the law firm representing the plaintiffs.

Nestle Canada settled for $9 million, Cadbury Adams Canada for $5.7 million, Hershey Canada for $5.3 million, and Mars Canada for $3.2 million, documents on Siskinds’ class-action website show.

Hershey Canada said Thursday it regrets its involvement in this incident, adding the current Hershey Canada senior management team as well as The Hershey Company, the U.S.-based parent company, and its management had no involvement in this alleged conduct.