The owners of J&M Trucking, Inc, a Lebanon, MO trucking company have been found guilty of charges including fraud, money laundering, wire fraud, and making false statements to federal agents. The husband and wife team, James and Melinda Ivey are jointly and severally liable to pay $797,325 in restitution to Tracker Marine, the Springfield, MO-based boat manufacturer that they were stealing form.
James Ivey has sentenced to five years and six months in federal prison without the chance of parole and Melinda Ivey was sentenced to two years and six months in federal prison without the chance of parole.
In addition, Paul Hunting, the co-defendant, pled guilty to wire fraud conspiracy, money-laundering conspiracy, and failing to file an income tax return. He was ordered to pay $294,496 in restitution to Tracker Marine and was sentenced to jail time of one year and one day.
The scam started in 2006 when J&M was hauling boats and trailers to Tracker Marine’s dealers throughout North America. When Hunting was promoted to transportation manager for Tracker Marine, J&M began submitting invoices that had 158 more miles than were actually driven. Initially, the per-mile reimbursement rate was $1.90. That meant that for every load carried, J&M was invoicing Tracker Marine for $300 more than it should have been. The money was split evenly between James Ivey, Melinda Ivey, and Hunting.
Between January 2006 and April 2009, the reimbursement rate increased to $2.10 per mile and a total of 2,550 fraudulent invoices had been submitted resulting in a loss of at least $797,325.
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Source: fleetowner
Steve Bell says
And they routinely pay the drivers for 10-15% less miles than they actually drive…And they just roll over and take it….All that the drivers want and whine for is to be able to work more hours…
Jake says
The trucker gets poor while the company’s we work for lie steal and cheat the customers thats business the American way
Sam says
Ethics are are in short supply while demand for them is high, and incentives for good behavior are too few with rewards for corrupted morals aplenty. This is the business model that currently prevails in America. J&M have to face the dishonor of being caught.
A likely story says
What are we not being told? Probably something along the lines of the shipper refused to pay tolls for the “short” route when the drivers tried to build it into their rate, and as a consequence, told the shipper that the mileage will increase due to taking the non-toll roads. Shipper ignored them until they began hurting for money at which time realized they could prevail in a lawsuit because of loopholes in the contract with the trucking company.
mc says
it looks like the owner of J&M got delt the hand they played. and the insider on the take. was outed. and then faced the punishment of his auctions. rule of thumb. Know the people you choose to do business with..
Don Dierdorff says
There are untold numbers of trucking company owners who screw their drivers and the laws allow them to get away with criminal behavior. They, the owners, know that the vast majority of drivers cannot afford to take them to court, and if they do, chances are the driver will lose.
Jasmer says
Hi my name jasmer my company fraud with me I am working as a owner operators I get accident 15 days ago i ask to my company to fix my truck we claim today tomorrow after 14 days they told me you need to do pay 1000 for truck 10000 for trailer and 10000 for cargo total 21000 I call to Warehouse to CONFIRM load are rejected or not they said load are Deliver perfect no short no damage I have proof for that I have a copy of bill of landing they totally lie to me they no even claim to Insurance if any body can help me out please help me thanks