Two brothers have pled guilty to charges of wire fraud and conspiracy to defraud the United States government. The brothers ran approximately 20 different carriers in order to avoid fines and out-of-service orders issued to them for safety violations, hazmat violations, and numerous vehicle crashes.
Between the two of them, Jay and Garret Barber owned Factory Direct Foods, Reliable Transportation Services, and many more trucking companies. The first company, Factory Direct Foods, was registered by Jay in Utah in 2006. Everything was normal until 2009 when the FMCSA put them out of service after the carrier failed a compliance review.
Instead of paying the fine, Jay transferred operations over to another trucking company he had registered, Reliable Transportation Services. When his trucks racked up other safety violations, Jay filed paperwork with the FMCSA claiming that the vehicles belonged to someone else.
Finally, Reliable’s run ended when it was proved – despite fraudulent bills of lading – that the company was illegally hauling hazmat loads. Of course, rather than pay the $220,000 fine, Jay enlisted his brother Garrett to help him.
Together the brothers created and ran at least 20 different trucking companies. All of the companies listed other people as the owner, but in reality, it was the brothers running the show.
Finally, in 2017 the Barber brothers were indicted for violating the OOS order Jay had received five years earlier. Both brothers pled guilty to wire fraud.
Jay has been ordered to serve 37 months in prison, three years of supervised release, and must pay $403,941.70. Garret will avoid prison time, but has been ordered to serve 18 months of home confinement, three years of supervised release, and must pay $920,457.30.
Including the fines accrued by the brothers, they will need to pay around $1.5 million.