Four top executives at a trucking company have been indicted by a grand jury on over 120 charges. The charges range from conspiracy to commit wire fraud, to money laundering, to conspiracy to defraud the United States.
Beam Brothers Trucking is a carrier contracted with the United States Postal Service to haul mail. Over the past 10 years, Beam has been paid over half a billion dollars for its services. But starting in 2010, Beam has been under federal investigation.
According to the indictment brought against them, the company has encouraged and even required that employees break safety regulations and falsify their driving records. Employees have claimed that on occasion paychecks were withheld until log books were falsified.
In addition to charges brought against the company as a whole, Gerald Beam, Garland Beam, Shaun Beam, and Nikolas Kozel are facing charges as individuals. Based off of a series of email exchanges between them, it appears that the executives may have known about and actively encouraged the practice of falsifying driver log books.
A federal grand jury has brought a total of 126 counts against the defendants who also are accused of running afoul of worker compensation laws.
Every defendant at Beam Brothers Trucking has pled not guilty.
The carrier pointed to what they referred to as “Beam Brothers’ exemplary performance and incredible safety records” saying that they have “one of the best safety records in the industry.”
But this isn’t the first time Beam has come under investigation. In February of 2003, the FMCSA found five violations during a routine compliance review, prompting the company to settle with the agency for $20,000. Then in 2010, the carrier paid an extra $25,000 to settle a case after the FMCSA found 23 additional violations.
This is the first time that Beam Brothers will face criminal charges however. Prosecutors expect to call between 50 and 70 witnesses over the course of around two months – a time frame that may be too long for the carrier’s liking.
“The company works with banks and the government … it’s extraordinary important that we try this case soon as possible, or there would be nothing left to try,” said an attorney for Shaun Beam according to WHSV.
“The charges are entirely without merit and illustrate government overreaching at its worst,” stated a letter sent out by the defense. “We will aggressively defend this case and are confident we will be completely vindicated at trial.”
Source: whsv, whsv, dnronline, fleetowner
zoran spasic says
My current company has on numerous occasions held my settlement check until log pages sent in or other So Called requirments are met like quarterly inspection report’ physical that is not expired, bi annual tractor trailer inspection that is coming due but not expired and that kind of thing can they be indicted?
Spike says
It is illegal to withhold a paycheck for any reason. Nobody challenges it which is why companies, especially trucking companies get away with it. Truckers are the most underpaid, overworked, and ripped of person in the work force. Until they start addressing those issues. and truckers start standing up for themselves, it will never change. Well, its starts with truckers standing up for themselves, until they start, nobody will be coming to our aid any time soon.
Skip chesnut says
If truckers are the most underpaid and ripped off then why are you a trucker? Only a fool stays in a career knowing they are underpaid and ripped off most people with a brain get a job in another field. Also the pay is known before even starting with any company.
Art says
Ok mister know it all!
MuthaTrucka says
You have no idea what you are talking about. As a matter of fact companies routinely lie about pay, then when you are there you are obligated to pay for travel and hotel costs if you leave.. and that is just a tiny scratch on the surface
David says
Think about it if you can. Some drivers get into it with a positive attitude like yourself and the years go by and as they get older they get wiser and realize they made a big mistake. By then it’s to late trucking tooknow the most productive years of there life .Hope this doesn’t happen to you.
Tom says
You surely have no idea what you are talking about
Jim Beason says
You, obviously do not work anywhere near the transportation industry.
1. Once you become a truck driver you are almost certainly stuck in the job because other industries do not like to hire truck drivers.
2. Yes, you do know what you are going to make before you are hired. Usually, 25 to 50 cents per mile BUT your mileage can vary drastically from well to week.
3. Carriers constantly lie to potential drivers to get them in the seat then treat them like a part of the truck, not a person.
4. I’ve been a driver for 26 years and I KNOW what I’m talking about. Do you?
Brown mat says
A person simply can’t switch from trucking to anything else because trucking is the only job that gets in to your soul. If you drive as company for 26 years, that’s about $2.1 million Only if you know the game.
Rockney Butzer says
Good call Skip. Agree with you totally.
Jon McLaughlin says
Pay is not necessarily known before you are hired. There are several ways that drivers are compensated. The most common is flat rate pay per mile. With most larger companies it is .30 to .50 per dispatched mile. The companies have several ways to tally dispatched miles. (1) PC Miles, most accurate. (2) Loaded miles, deceptive, you may have to deadhead 150 unpaid miles to get to a load (3) Air miles, deceptive because air miles could be 100 miles by straight line, but by road it could be double the miles. The company pays for all fuel, maintenance, plates, and tolls. If you are an Owner/Operator with the company finding the loads for you, you are at their mercy. You generally are working for from 90% of the load to 65% of the load. Dispatch will not usually negotiate hard for your loads. All of the miles to the load you do for free, you eat all tolls on toll roads, plus you pay for insurance, and plates, and all maintenance and fuel for your vehicle. If you don’t own your own trailer, you either have to privately rent one or rent one from the company you are leased to either flat rate or percentage of load. There are many variables involved either way you go. But unless you have your own authority you will just be making a living.
Billy says
“Also the pay is known before even starting with any company.”
No it’s not. We are paid by the mile and miles will vary for many reasons. Additionally, big truckload carriers are notorious for not paying drivers “accessorial” pay that they were promised upon hiring and .that was duly earned …detention, breakdown, trailer searches, etc.
Are you going even a driver, Skip? Or some desk jockey at one of the Mega trucking companies? Or maybe some doofus that’s getting his information from truckingtruth.com, the Mega recruiting site.
Bigrod says
Because most if those types of laws you are referring to do not apply to truckers. There is always a loop hole for them to get around to screw us. I know because I tried going against link America when they screwed me out of 2 paychecks and vacation pay. Also tried going against them for hours worked and not compensated when they started with that elog crap where id be forced to be in the truck 24 hours and not being paid and stuck in somebody’s parkinglot. They get away with not paying us overtime also. I work local now as an owner up, but I used to work for a company and worked 65 hours a week, all straight time. They claim since road drivers are allowed to work 70 and 80 hours in a week it’s considered a normal work schedule just like 40 hours is normal for factories but anything over 40 they get overtime. However, we can’t work more the 70 or 80 hours without getting violated so we don’t qualify to earn overtime.
Steve Volkle says
Spike you said it all AMEN With the help of the DOT. and the rest of the gov companies can pretty much do what they want and STICK IT TO THE DRIVER. You know it’s ALWAYS THE DRIVERS FAULT.
D.P. says
Trucking companies make it near impossible to stand up , they cut your miles , they set you up with illegal runs and if you say anything they threaten your job. I have stood up to many company’s and it has severely hurt me financially and as far as getting a job they have made it near impossible, company’s look at how many jobs I’ve had and won’t hire me. I have been tossed out on the curb cause I tried to stand up for myself , took all my paperwork to the labor board and lost because he paid them off , so now I’m homeless 1200 hundred Miles from home , well I ended up loosing everything I had and was not able to get a driving job, this man ripped me off for $16,000. Ya I can understand why drivers won’t stand up for them selfs, I know I won’t anymore, I’m to old to start over again.
Swerve says
Why not buy your own truck and get your own loads. Got lots of friends netting over 70000 a year that more than any other job around here in Mississippi
WRJ says
Huh? “A lot”?
CLAIMING??
Mississippi is no different than any where else.
I doubt your numbers.
Recruiter?
Matt says
They are. I have found that more and more drivers are standing up and taking companies to task over the way these companies illegally treat them. Lawyers are becoming more happy than ever to sue these companies over rather small infractions.
Paul says
When a start working for a company – you must follow their rules, right. I’ve been working for my company for over 5 years now. When I do my job – they do their part and pay me ontime. When I screw up – I pay, I dont point any fingers and expect someone else to pay. When I dont send logbooks on time – its only my fault and I dont expect a company to pay me untill I follow their rules.
Craig Ryan says
Bam nailed it!!
Big Don says
Not until someone reports them, and has enough evidence to support starting an investigation.
Bill.comp says
Every thing you have listed Zoran, is a company requirement for information they need to stay in compliance with FMCSA, and in your case, some issues that are more, than what the federal laws require, are arguable, but are they worth loosing you contract? BIGROD, You should speak to someone with you State Dept. of Labor, Dept. of Commerce, The hours of service rules have nothing to do with anyone’s payroll. You are right about the 40 hr. week. The 70 hr. in 8 day rule, has nothing to do with pay at any level, it is a safety issue only. The Dept. of Labor, and FMCSA, both were adamant about that very issue. If you are represented by Union , they have negotiated some good out comes for drivers, but is the biggest reason, the industry has spent hundreds of millions of dollars to keep the government from getting back into any kind of regulation, concerning wages in the trucking industry. My advice is shop around for a good company, then do your damned ist to be fair, If they don’t reciprocate, move on. An individual trying to fight them on your own is only is only going to give you an ulcer.
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Penny says
Well when you compare that to holding paychecks until you do something illegal I would say they probably wouldn’t. It if you have paperwork stating how your paychecks are given to you and if it is dependent upon certain things you need to get done then I guess you’re just following the rules. If not, you can call them on it and see what happens. I’m sure you were just hoping though!
Greg brown says
Beam trucks drive 70+ mph on i81 and i66. I always thought they must get compensated well to burn up the fuel. White collar crimes, especially executives, generally serve no time, or a small amount at an easy, low stress facility.
drivers_advocate says
Time to investigate Salmon Companies now. They’re deep in fraud and illegal business dealings. Do it.
Big Don says
Question here: What are YOU doing about it? If you have knowledge that would help an investigation, have you done anything with it?
One of the biggest problems we face, as drivers is the common attitude of “I know they operate illegally, but I’m not going to get involved. I’ll just move on to another job, and leave reporting them, to somebody else.”
Penny says
Oh I’m sure drivers will eventually talk. Give it a little time. I don’t think it would even go this far unless they already had some talking going on. They don’t have to say, yet!
C.W. says
This is ridiculous, looks like big brother out to put it’s thumb on the little guy! 500 million over 10 years may sound like a lot of money, but to a fleet of trucks that gets eaten ip pretty quickly in operating costs. Sounds like the gubment had sunk their teeth into them before and maybe they’re just an easy target.
Penny says
What is ridiculous is Beam Brothers didn’t want to pay their drivers! If you look at the court documents that is one of the biggest issues. Their drivers are being told to do things that affect their pay. Beam brothers are benefiting the drivers are not.
Tristian says
Just can’t win with some of these companies
Paul Logan says
Guess which companies are exempt from inspections? You have a USPS load in the trailer and it is an automatic free pass from inspection, WHY? If something OOS is found, the truck is placed OOS. Right? WRONG. NOTHING SHALL STOP THE USPS. Been there done that.
Johnny Trucker says
That’s incorrect. I’ve hauled mail as lead driver for years. It doesn’t matter if you’re hauling intrastate or interstate, all carriers must comply with FMCSA regs. The only exception is for USPS Registers that are being hauled on local pickups & deliveries from/to PDC to USPS Stations and visa versa. That exception is only regarding local law enforcement. Not state or county.
Bill.comp says
You are right, and that is why the politician’s that do take issue with the management of Trucking companies, in their oversight are putting pressure on the Attorney General to do something about the abuse.
US Postal, and any other other government load, enjoy the waiver of all state scales and inspections. Which in reality the should be inspected with prejudice, after the way the states treat the public.
Kevin says
I talked to Beam in 2008. Was told that from time to time I may have to stretch my log a little. I told them “No Thanks”.. None of this surprises me.
WhiteBread says
You must still be a greenhorn?
Jack says
Lol they all must be green horns.. these are not truck drivers. Most real truck drivers got run off back when they started messing w/logs in the mid 2000s
Penny says
Right? If a company is open enough to admit that right from the get-go you know that there’s going to be a problem.
Marshall says
They have been cheating for years
Robert says
Surprise surprise another bunch running illegally. Who would of ever thought.
Alan says
GOLDEN RULE AUTO TRANSPORT. NEXT.//// THUGS..
Head Games says
The FMCSA seems to need a lot of inspecting too since they are taking the money and keeping their mouths shut.
Jane Gates says
Anyone can ask FMCSA to investigate, but you must provide them with documentation of your case.
https://www.fmcsa.dot.gov/safety
frank howdeshell says
These are not unique to mail carriers companies. Wish the govt would protect all drivers from these illegal practices.
Bill.comp says
The Ip address is right above you name, today would be a good day to start.
Penny says
Well it does take a little bit of information from the drivers in order for them to do anything about it!
e.a.w. CORP says
How much money is enough to put drivers livelihood in jeopardy because any driver in their right mind knows better than to faulsify any documents paper or electronic that are DOT regulated.
Penny says
It doesn’t even sound like they were getting compensated for doing it illegally anyway! They weren’t paying their drivers very well. That’s probably why they are getting indicted. I read through the court papers and it most definitely shows they were not giving them extra money.
Charlie says
Coast to Coast in Flint, MI does the same thing. They want you to work 14 hrs a day, 7 days a week. I wouldn’t do it.
Bill.comp says
Not 7 only 5. the law is still 70 and reset.
Pete says
Look at all the drivers that don’t get overtime pay for any hrs over 40 that’s wrong i’ve been out thousands of dollars over my 20+ years driving because of that rule and it is just terrible I’m a local driver why do I not get overtime
Bill.comp says
Do you use a time clock to get paid?
Geo says
With all the stupid restrictions at the government levels, such as CARB standards and NAFTA, it’s no wonder outfits are cutting corners! More safety, less EPA crap!
Bill.comp says
Do you even know what CARB and NAFTA, are ?
Deb says
R. Millennium Transport Turlock Ca. They are the worst!! The so called Safety Director there has drivers using Keep Trucking. Com, everyone is assigned the same password and he goes in and changes your logs at will. He gets glowing reviews from DOT. They send you $$$ to buy cash fuel when you can’t match fuel stops. Routinely the owner sold us to Fed Ex as teams and had to run from E.Moline Illinois to Riverside CA. in just over 24 hrs. I was to say my team partner was Mike and he was at truck stop taking a shower. Run consistently from Salinas, Ca to Springfield mo 1850 mi in under 48 hrs, this is common. Besides you have 400 + mi of California at 55mph. You kill yourself trying to get there and find out your not due for another day or 2. They are outlaws. Owner hanging out with California State Representative so he thinks he’s got it made.
Bill.comp says
look like he does have it made in Calif. You can use the same address: http://www.fmcsa.dot.gov/safety
deaconblues62 says
Gee thanks for letting us know our tax dollars are hard at work, LOL.
Out of all the trucking companies on the road and Lease Purchase Trucks and O/Ops they found 1 company that runs hot??? (hummm)
Well like I said Golly Gee, Thanks FMCSA u’r hard at work. (snickering)
Big Don says
The company is a contractor for the post office. They are likely being targeted for that reason. Point being, “Don’t screw with your uncle!”
Big Don says
The only way these outfits are going to be forced into following the law, is significant prison time for the top executives. Otherwise, they just consider fines as a cost of doing business.
So they are complaining about the time frame for the trial. Most generally, defendents are trying to delay the trial for as long as possible. What they are actually doing here, is laying a basis for an appeal if the trial doesn’t go their way.
Dave says
Ok. All their problems started back in 2003. But, yet they where aloud to keep running government freight. Sounds like they refused a payoff to me… Fyi folks. if you dont turn in bol,up to date logs,inspections, etc. they can hold your check. They cant hold it because you refuse to turn in false logs. And, they can only hold it so long. Drivers have problems turning in paperwork anyway. which i dont understand why. I drove for 30yrs. paperwork is your check. I owned trucks and had drivers. even local drivers that was at the office daily. and still couldnt seem to turn in paperwork.
Matthew Ewers says
Sodrel Truck Lines, a United States Postal Contractor, in Indianapolis, IN does the exact same thing. I drove for them about a month. I quit when the dispatcher was taking my log book and putting white out on the graph and changing it himself. The things Beam Trucking got indicted for should be precisely what Sodrel Truck Lines should be held accountable for. If law enforcement wants to contact me to pursue chrges against Sodrel Truck Lines my direct email is matthew.ewers@yahoo.com.
Dave Autrey says
Might be time for AI administrations/ROBOCEO, since we are trying to automate? Hey while were at it, a terminator court system too!
Tristian says
Alot has to do with who the department of transportation wants to talk to as for example a driver who had been around along time normally is the one they go after
Bill.comp says
The reason for that is, there may be a possibility of a court action, and they feel they need witnesses, that can relate to the issues at hand. Because these companies hire the best legal hawks they can afford.
Michael Gallegos says
I have been trucking for about 10 years. I have found that companies who run truck expenses like fuel, tolls, or repairs through payroll accounts are up to no good: I have seen these figures on my pay stubs as a credit in, and a debit out, of the payroll account which appears to bypass the company expense account. I my opinion, that’s laundering money.
This idea also applies to charging un-bonded drivers a bond fee for each load, especially if the company is cash rich and self-insured, and, has “required” participation in a health or equipment insurance program even though own insurance is more than adequate.
As time went on, I found and worked for companies who did not push the out of hours issues. With the introduction of electronic logs, the only companies who pressure drivers that way seem to be the ones who do not maintain electronic logs.
In my opinion these are sleaze characters who I have reported to every organization I thought would be interested: DOT, FMCSA, TSA, State treasuries and IRS, State and Federal AGs.
Drivers, you must be careful for whom you work and if they don’t pay, don’t stay. At the first missed paycheck, be gone ASAP – don’t mess around with the sleazes; you will get hurt over time.
If a company dispatches me, I pick up and deliver Load A on time. I expect the company to have the next Load B’s pick up time less than 24 after delivery of Load A. Not days later – that’s BS. That’s not a hard working company. They will lose money and so will you. Move on.
If they don’t pay, don’t stay. That includes things like repowers that suck 4 hours out of your driving day waiting for the other driver to show up: you don’t make money doing that.
So use your head and don’t get sucked in by sleazy company dispatchers. I include the major companies in this opinion: they have all kinds of good sounding reasons to keep you unloaded instead of loaded … I have yet to figure how a company is so big they can afford to waste opportunities to make money with so many drivers available. Drivers sitting waiting for loads don’t make anyone money. Drop these people like a hot rock and move on till you find a “home”.
Lord knows how they stay in business with mediocre brokers who don’t pay attention to their agents who in turn pretend to work while working, and planners who fail to perform by ineffectively competing for loads, and then, that all-time company favorite culture, favoritism: drivers will “kick-back” to dispatchers for favored loads and favored treatment.
Also, don’t fight that “do as I say, or else” tyranny – just move on until you find decent, honest Americans. They are out there. You will find them by staying away from the big companies wherein there’s lots of room for corruption and graft.
The smaller companies have to compete with the big ones. They can compete easily with good, reliable and dependable, honest, hardworking drivers who are the reason that a company prospers. Last, don’t fall for the common claim of how well drivers are treated like family. Being treated with respect and fairly is better reflected by consistent professional attitudes and loads that lead to paychecks for everyone.
This may be an company owner’s intent, but it washes out by the time it gets to dispatches who find it very hard to treat drivers with a modicum of respect. That is easy to do, but not when dispatchers cannot check their ego, and learn to concurrently serve drivers and company.
Dispatchers are under the gun to get it done and it takes a strong character to avoid short cuts at drivers’ expense – a good dispatcher is also a boon to the company when they mesh their company goals and concerns and needs with drivers. Not an easy job that is easy to do in a dishonest manner.
Drive safely, courteously, and maintain patience with the four-wheeler crowd.
Don’t “act” professional. Be professional.
Have a nice day.
duhfault says
[The carrier pointed to what they referred to as “Beam Brothers’ exemplary performance and incredible safety records” saying that they have “one of the best safety records in the industry.”]
There’s a firm grasp of the irrelevant. They are not charged with having a bad “safety record”, and charges of speeding and following too closely do not require a crash to be valid.
Tristian says
Just like hands free device’s I know a guy who can go through Brooklyn NY smoking a cigarette drinking coffee and recording live videos while shifting gears
Jersey guy says
They need to look into why companies pay zip to zip and we transport freight from dock to dock…
jim says
i work for a company who has very sub par equipment expects you to run illeagal and does not care about nor do they even understand hours of service.. the few of us left are planning on turning them into the D.O.T. and hopefully watch them burn in hell
Helen Corbett says
Some of your comment are right and some are wrong. Your right we you say once you are a trucker no one want to hire you. Your wrong under no reason are your pay check to be with held. As for running illegal. I want do it. If they fire me for it I have that to use against them. I have been driving since 1992.
Marshall says
Beam driver just told me they are shutting down. Owners filed Bankruptcy
Marshall says
The Beam Driver I spoke to said he will be out a months pay. Apparently Beam holds a month before you get first paycheck. He also said they owe him two weeks vacation.
Dammm
Drivers always getting screwed. Hope the owners rot in jail.
buggzee says
126 counts of money laundering and fraud I’m one of the witnesses I have to appear in federal court…. out of those 126 counts of money laundering… fraud …..and wire fraud ….seven other companies they own laundering money underneath beam brothers roof…. if convicted they’re facing 1000 years behind bars 250 years each….. the 3 owners and the accountant….. to answer that question about drivers pay whenever you enter the cab and start the truck you’re on duty they have to pay you for that….until you stop….if in doubt contact the dept of labor or the irs…..if one is not being paid they will help you…..