The former owner of a trucking company has been sentenced to 18 months in prison for tax fraud. This is the second time the man has been found guilty of fraud while he was in charge of a trucking company. But if you’re worried about him, don’t be: He’s already found a new job… at another trucking company.
Michael Gerstenberg was a co-owner of Damar Transportation. The Allentown, PA-based company operated from 1996 until 2010. It closed shortly after Gerstenberg pled guilty to charges stemming from a failure to pay taxes.
After Damar Transportation was closed down, Gerstenberg started a new carrier, A.E. Logistics. The new company had many of the same employees and clients as the old one. From 2010 until 2015, Gerstenberg deducted $732,291 from employee paychecks to pay for taxes, social security, and Medicare. But instead of sending it to the government, more than $700,000 was used to fund personal spending.
According to the indictment brought against him, Gerstenberg spent the money on a Caribbean vacation, gambling, country club dues, extravagant jewelry, and more. He also paid his girlfriend an inflated salary, depositing the money into a shared account that he had access to. Taxes were not paid on that income either.
After guilty pleas for two separate instances of tax fraud and an 18-month prison sentence, Gerstenberg now works at a small trucking company in New Jersey, Mid Atlantic Xpress. He’ll have to take a break soon though as he’s been ordered to report to prison on Jan. 24th.
Source: freightwaves, truckersreport, yahoofinance, lehighvalleylive, mcall, stl
Duh says
I wonder where he will be in about 19 months… Mid-Atlantic or another trucking company?
Alex c says
Werner or swift
Michael Sutton says
How did he start the 2nd company? I thought the FMCSA was cracking down on creating new companies after one is shut down.
Robert Breslin says
Ha! Good one!
MrYowler says
He will have been shut down vy the IRS or in bankruptcy court, probably after hiding most of the ill-gotten gains for use in funding the startup of the new company.
Since the FMCSA isn’t who shut him down, they would not prevent him from starting another one.
Ervans says
His bad records were with the irs, not dot. Company could have been stellar, he just took the irs’s money and spent it. Heck, if he had no infractions with dot/fmcsa, he could do a name change and keep same numbers….
Douglas Kirk says
If he’s that good at stealing he should work for the IRS
Chantal says
😂
David Schronce says
He may be good but not good enough to work for the IRS. No one can beat them at stealing.
Nocount says
Happens all the time with the “executives”. Right here where I live, a president of a trucking company was run off by the parent company because of “stealing”. But you know where he is today? He holds a very high position with a trucking company out of Ohio. This is what wrong with trucking, the bad apples only go from company to company and nothing improves.
Kenny says
Was this guy born and raised in America I wonder.
Bruce Danlag says
Sounds like a racist comment !
Alex c says
Hes,prob at some truck stop in the tv lounge
William Fugitt-Sr says
Come on guys ,in this day and age u can damn near buy anybody,that’s what makes it so damn aggravating, the rich keep getting richer an the poor cant get a break. As for this sob,being an o/o for almost 30 yrs in Pa. ,well he,s better off in prison! If not and I was there he,d have something to worry about day for day!!!!!!!!!9
OffRoad trucker says
..how do you get hired by another trucking company after being convicted of a federal crime, don’t they do background checks, or is that a prerequisite for being hired by another criminal trucking company?
Jim says
Now I know Y the trucking companies don’t pay well as for the drivers, because of this nut job…
Daniel says
Once someone goes to jail once, that’s enough and they go on in life avoiding breaking the law.
You’d have to jail this knob for life to prevent him from committing fraud. People are going think it’s harsh, but he should be locked away forever; throw away the key and let him rot. Make an example of him.
Rey Pescador says
Why should I have to pay for him to rot in a cell for the rest of his life?
Once again, he would be stealing and taking advantage of us hard working Americans.
Alex c says
Should be popular man in prison
Jerry says
He should be given the duty of cleaning the shitters at the prison and do forced community service for life, and required to wear shirts n jacket that says I stole money n defrauded the trucking industry
Bad Inflience says
Two companies then he’s indicted and out roaming the streets then he starts working for another company. I guess the new company he works for didn’t do a background investigation on him after all he was found guilty and it’s on his record. I hope his former employees don’t get left on the hook for taxes he embezzled. 18 months is pretty light if you ask me.
Chantal says
18 months is really light! That was over half a million dollar. That’s insane. And more than likely, those workers are screwed for their money.
Lenwood Richardson says
We have one thing on our records and get looked at like a incompetent ass. The big wigs can steal and rip off drivers, and nothing happens to them. Have you ever wondered why this industry seems to have too many con men in it?
trokerito says
good thing tag he , at least is going to jail, others get to the White House .
Alex c says
Already one crook in white house, don’t need another