Four executives at Beam Brothers Trucking have taken a plea deal which reduces the charges against them from a total of 126 felony counts to just one misdemeanor charge each.
Beam Brothers used to be one of the largest contract carriers hauling mail for the United States Postal Service. They made over a half a billion dollars over the last ten years. But they were also under both civil and criminal investigation over multiple issues including allegedly encouraging and even requiring drivers to break safety regulations and falsity their records. They also allegedly withheld payment from drivers unless records were falsified.
After the investigations concluded, a federal grand jury handed down a total of 126 charges against the four highest-ranking executives at the company. At the time, the executives’ lawyers published a letter saying “the charges are entirely without merit and illustrate government overreaching at its worst. We will aggressively defend this case and are confident we will be completely vindicated at trial.”
In exchange for every single charge against them being dropped, Gerald Beam, Garland Beam, Shaun Beam, and Nikolas Kozel have each pled guilty to one count of misdemeanor conspiracy to knowingly violate the Federal Motor Carrier Safety Administration highway safety regulations.
The company as a whole pled guilty to one count of conspiracy to commit an offense against the United States, falsification of records in contemplation of a federal matter. The parent company, Beam Brothers Holding, pled guilty to one count of conspiracy to commit wire fraud.
Beam Brothers will pay a fine of $250,000, pay back $2 million in proceeds it earned through the alleged fraud, and $1 million to drivers who were defrauded of their pay.
Before the plea deal was reached, the executives decided to transfer the whole company over to Eagle Express Lines in exchange for $26 million paid to Beam Brothers. Eagle Express will take over all current contracts and retain all 600+ employees.
Despite the guilty pleas, attorneys for the Beam executives are still crying foul.
“For generations, Beam Brothers Trucking demonstrated a singular commitment to its customers and employees,” said one attorney. “We have and continue to maintain that this case illustrated government overreach of the highest order that destroyed a local family owned business.”
According to the Daily News-Record, another defense attorney complained that the U.S. Attorney’s Office should be focused on real criminals, saying “it’s a shame if this is what the U.S. Attorney’s Office is using its resources for.”
Source: DOJ, truckinginfo, newsleader, dnronline, whsv, thetrucker, truckersreport
scott says
I like how the lawyers complain about the government over reach but nothing about the company screwing the drivers!!
William Serenity Trucking Womack says
A driver falsifying driving record kills someone. He gets manslaughter. Executives buy their way out.
I drove 4 trips for Beam December 2008 in hopes of a better job. Not a good experience. Intimidation. Needs The Union srandard, but then again they are corrupted to. Praying.
BlackIce says
I feel that there’s a real problem here. First we the trucking industry are experiencing changes every day to increase safety on the highways. Drivers go through and through on safety inspection after safety inspection risking not only their lives but finances too. Now you tell me this company gets 126 charges drop to one charge but they were risking and endangering the lives of the public and all they have to do is pay a little bit of money. Shame on the FMCSA.
Mike says
Just another slap on the hand is all it amounts too in my opinion. Had it been just another been a small business man they would have served time.
Groo says
What a pile of crap. Nothing will ever change if executives get slapped on the wrists for their criminal actions. Company fines do virtually nothing to discourage criminal activity.
JRV says
Thats Right….Specially when they pocketed Half BILLION..! $$$$ in last Ten years only. !!
DC says
So the Beam brothers have to pay 3 million 250.000 dollars for defrauding employees, yet get to keep 26 million in revenue from the sale of the company. Wow, what a scam they got going.
Jay b says
Not to mention the half billion grossed over the last decade
Wayne says
I would be willing to bet they own Eagle express also.All these Mail haulers do this stuff.Tracie McCormick Trucking is doing the same thing to there drivers everyday of the week.Nothing but a bunch of crooks.
mousekiller says
They should serve hard time. If they got 5 years they serve 5 years no time off for good behavior in the general population.NO club Med time.. I would like to thank the person that brought this to the attention of the US attorney and got the ball rolling. Not their fault payoffs were involved. That is apparent that is what happened. .
Dan says
Wow.. That is a shocker isn’t it..
bil.com says
Not a shocker at all. On top of this one company is a stack of other companies doing the same thing. Another little tidbit the public doesn’t know is US Mail trucks are not subject to any state interdiction other than speed, no inspections, driver or equipment. Major plus for the Company, and still they are greedy enough to steal from the tax payer, and our illustrious legal community, who is only concerned with their win record, trade 126 federal charges for 4 misdemeanor charges, they should be disbarred for derelictions of their legal performance.
claude says
tell that to k y d o t. davenport is check almost evertime they go thur ky scales . and they are a mail carrier , no bad record or volations other than just small stuff. and NO I don’t drive for them or work there .
David says
But if a driver would have done it off to jail he goes smh
Brian White says
WTF??? Why is it that these executives skated away from 126 charges??? If that weren’t bad enough, the single misdemeanor each scumbag WAS charged with & pled guilty to is, based on the amount of money they made (“…over half a billion dollars”) nothing but a slap on the wrist.
Just like the Arrow Trucking execs from a few years ago that wound up in prison, these scumbags should enjoy the hospitality of the government, in the form of a 8×10 federal prison cell.
Kevin says
It just goes to show how mentally ill truck company owners are.
They think because they are rich, the rules don’t apply to them and squeal like stuck pigs when they get caught breaking the law and then try to blame everyone else for their arrogance.
Look in the mirror, the problem starts with the reflection.
Nora says
So, whats that administration, who are they, of Eagle Express…