Trucking Company Owner Steals $5 Million From Employees

    One of the longest running embezzlement scams in the industry’s history has ended. The scam spread across several different trucking companies and has cost employees an excess of $5 million since 2007. All of the companies were owned by one man, Nicholas Farnsworth, who recently admitted to crimes including embezzlement, unlawful payments, and health care fraud.

    According to a press release issued by the U.S. District Attorney’s office for the Eastern District of New York, Farnsworth owned several different trucking companies using nominal owners. The companies entered into an agreement with the Teamsters Union in 2007 which “obligated the defendants to pay specific hourly wages to their drivers and to make payments to Local 282’s welfare, pension, annuity, job training, and vacation and sick leave trust funds.”


    From 2007 until 2011, Farnsworth’s companies illegally contracted their union work out to non-union trucking companies including Rainbow Transport Corp. So since the work was being done by non-union drivers, Fansworth and four others were able to pocket the cash that was meant for union benefits.

    “As charged in the indictment, in these difficult economic times these defendants conspired to steal the pension and welfare benefits of hardworking truck drivers depriving them of retirement and health benefits they rightfully earned. Holding the defendants accountable puts others on notice that such conduct will not be tolerated. Every worker who puts in an honest day’s labor deserves no less,” stated United States Attorney Loretta E. Lynch.

    If convicted of the charges, each defendant faces maximum sentences ranging from 5 to 20 year in prison on each count of the indictment.

     

    Next Story: Deadly Carrier Takes Advantage of the System

    Source: landline, justice.gov

    { 12 comments… read them below or add one }

    Moxie December 20, 2012 at 6:21 pm

    I’d like to see them string ‘em up by one of their lower “appendages”!

    Reply

    sudon't December 21, 2012 at 8:26 am

    “As charged in the indictment, in these difficult economic times these defendants conspired to steal the pension and welfare benefits of hardworking truck drivers depriving them of retirement and health benefits they rightfully earned. Holding the defendants accountable puts others on notice that such conduct will not be tolerated.”

    Couple of dummies. All the other trucking companies rob their employees legally.

    “Every worker who puts in an honest day’s labor deserves no less,” stated United States Attorney Loretta E. Lynch, forgetting to mention that this only applies to union drivers.

    Reply

    Dan M December 21, 2012 at 10:07 am

    Reimbursement to the driver’s retirement is needed here in addition to a long prison sentence.

    There are many other crimes/stealing going on against the driver. Simply stated, most carriers don’t care. The one I see often out there is the carrier forces the driver to sign a statement where he promises to pay back the carrier for things like a physical, or orientation costs. Similar statements I have seen where the driver gets payroll deductions in case the driver gets stuck and needs a tow. Other deductions I’ve seen in case a driver is sited for a CSA inspection. Here’s one I’ve seen out there, where a carrier forces the driver to pay up to $5000 and more depending on the carrier Insurance policy. Meaning, if the driver gets into an accident, the driver has to reimburse the company up to the cost of the deductable of the Carrier’s insurance policy. I didn’t have that much money in my pocket so I wouldn’t sign…so I didn’t work there. They were very quick to say they automatically take it out of your paychecks. This list goes on and on. One has to be very careful in accepting a job with a carrier, especially the larger well known carriers.

    Reply

    Filippo December 21, 2012 at 11:55 am

    So, a company owner embezzles $5 million and everyone screams to high heavens about it, and I talked to an interstate distributor team yesterday morning about the oldest brother embezzling ONE HUNDRED MILLION DOLLARS and it didn’t even make the news because Saltchuk bought them out and buried the evidence. No prostitute is worth $100,000,000.00 but owner operators are.

    Reply

    under paid / overworked December 21, 2012 at 2:37 pm

    why stand up or drive for unions for that matter when most if not all the pension money has been underfunded and facing bankruptcy.

    Reply

    rick December 21, 2012 at 4:30 pm

    Another reason why unions should be illegal…look what happend to yellow freight now YRC. The stole from their drivers for years. Total scum bags

    Reply

    Teamster December 22, 2012 at 4:26 am

    So Rick, are you intelligent enough to comprehend what you just posted ? Or are you too ignorant about unions ? “to QUOTE you “Rick”. “Another reason why unions should be illegal” Look what happened (spell check is a wonderful thing “Rick”) to Yellow Freight now YRC”…SO you think they “stole” from their drivers, so the DRIVERS UNION should be illegal ??? The “union” stole NOTHING from their drivers “Rick”…The management has run the company into the ground, not the employees. Your ignorance is showing. I must admit I LOVE reading all the “less than intelligent/barely literate” responses to some of these articles. Most of you deserve that .25 cents a mile, it’s all your worth. I enjoy a GREAT Teamster pension and LMFAO when I see all you scab drivers out there struggling for your measly money. You wanted deregulation…Enjoy it.

    Reply

    TomSmith December 22, 2012 at 11:50 am

    The US District Attorney in Eastern New York is not someone USA trucking crime syndicates want to deal with…..Farnsworth is simply a small example. (The Farnsworth indictments are just the beginning.) The Eastern New York D.A. won’t play their game, anymore. You want to step back and get out of Eastern New York’s way….. Eastern New York is worse than Texas or Libya combined, because Eastern New York is going to, “do it,” legally. 18 USC Chapter 96 – Racketeer Influenced and Corrupt Organizations – RICO, started in New York. Now, many national USA trucking crime syndicates are waiting further embezzlement, bank fraud and federal criminal indictments. Farnsworth is no different than the owners of Werner, Swift, C.R. England…etc. etc. etc….they all follow the same game plan…..and, it’s simply too late in their game to change anything, anymore. Non-compliance with the FDIC (for legal loan requirements to truck driving students), RICO and Sarbanes Oxley are easy to identify as part of the US trucking crime syndicate’s corrupt organization. The US trucking crime syndicates illegally used federal money to invest and over-inflate their worth on the S.E.C. – Security Exchange Commission. Federal subsidies were originally issued for the purpose of the best interests of U.S.A. truck driver’s. Too bad….Quantitative Easements (federal subsidies) were misused for the illegal financial gain of USA trucking company owners and investors and not used for the USA truck driver’s best interests. Quantitative Easements were an entitlement NOT a gift…..no more QE’s for USA national trucking crime syndicates. What is much worse than any amount of money, is recognized by U.S. D.A. Loretta Lynch. U.S.A. truck drivers, daily, risk their lives driving for the purpose of maintaining U.S. domestic policy in transportation and logistics. These driver’s have been used as slaves by USA trucking companies and their major investors. The bottom line, is, the feds only let it go, long enough to investigate the crimes. Now, the indictments are beginning……

    Reply

    TomSmith December 22, 2012 at 12:05 pm

    Merry Christmas.

    Reply

    Filippo December 25, 2012 at 10:03 pm

    Looking at other posts regarding this article, it has been pointed out that Loretta Lynch & the US GOV make big words to protect those (Union) workers who are already protected. But what about the regular truck driver who is forced to sign ridiculously unfair contracts which are as unethical as they are illegal, completely protecting the company but leaving the driver in harm’s way if ANYTHING were to happen to the company’s equipment. If it were to be known by legitimate US office holders who don’t take money from the big companies to look away, then MAYBE something might get done and ruled that apply to other career choices should start applying to the trucking industrial Mafia complex. Good luck on that one… meanwhile I was told a pig was flying. I’m going to go have a look.

    Reply

    carl December 28, 2012 at 12:39 pm

    @ teamster. i agree with you wholeheartedly, however when advocating some one use spell check, perhaps you should check your own. “Most of you deserve that .25 cents a mile, it’s all your worth.” should be “…it’s all you’re worth”

    Reply

    Joe D December 29, 2012 at 7:43 am

    And a big blue bird steals 2.5 m a month from its drivers by charging 3 cents/mi, for allowing the drivers to b paid mandatory perdiem pay

    Reply

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