The former head of a Texas-based carrier has been sentenced to eight years in prison – and he won’t be alone. He’ll be joined by two other former executives who received four years and two years each.
All three former carrier executives pled guilty to charges of conspiracy to commit wire fraud after they admitted to working to defraud GE Capital of more than $26 million. The men were the president, COO, and Comptroller of the Texas-based USA Dry Van Logistics.
When the company wasn’t doing well, they decided to artificially inflate their performance on paper so that they would qualify for a loan. According to the FBI report issued after their arrest, the fraudsters did this “by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist.”
Once their “improved performance” looked good on paper, they submitted their false financial statements to the bank, qualifying for a much larger loan than they otherwise would have been eligible for.
After the scheme was discovered due to a join investigation by the FBI and Homeland Security, the three executives responsible were fired and the company was reorganized under new leadership after declaring bankruptcy.
All three men were indicted on six counts each of conspiracy to commit wire fraud – a charge which carries a maximum sentence of 20 years in prison and a $250,000 fine. All three men pled guilty to 1 count of conspiracy to commit wire fraud, while the president also pled guilty to six counts of wire fraud. The president, COO, and Comptroller will serve 8, 4, and 2 years in prison respectively and will be responsible for repaying $16 million to GE Capital.
Source: fbi, justice, truckinginfo, wpri, krgv, thenewstribune, miamiherald
Image Source: findaphoto
They should have gotten the maximum and ordered to pay back 100% of the money they narrowed and frauded one of the last banks that would loan you money on a truck and trailer and not take you to the cleaners doing it. They were living high on the hog. That’s why their business failed. This is the problem not only with them but many major companies too
They live well beyond their means and the business and employees suffer. Hang those asses out to dry. Nothing worse than a thief.
So they’re jobless, in prison and convicted felons when they’re released but…. They’re gonna pay 16 million in restitution? There’s no way that money will ever be repaid. Did you all know that the United States government counts restitution like this towards it’s borrowing power? Ironic eh?
I agree. There are many banking CEOs such as the heads of Goldman Sachs who contribute to politicians who should be investigated for fraud, but they won’t.
So, basically, the government is commuting wire fraud?
But the guberment is above the law, wire fraud is the least of their BS…
Fbi good job getting these numbs out of the industry. American greed here’s another story
Homeland Security was involved in the investigation? So were they terrorists also? Maybe they were Illegals? Or maybe Homeland security is all caught up with homeland security stuff and was just bored. No cowboy hat wearing white guys to worry about.
Wow and the banks did this left and right back in 2005/2007 and no one went to jail, and Home land security really, why don’t they look for people who want us dead not 3 idiots getting a loan from the biggest loan shark company in the whole that is GE. I had a business loan with them and if you are 1 minute late paying them they start calling you and if your check di not clear the bank the charged $250.00 NSF not $25.00 and then you pay big interest rates to.
Fraud is fraud. Crooks going to jail. I call this a good start. Your payment problems with GE have nothing to do with the thread. Can’t handle collection calls, tBarron? Stop being a deadbeat and pay on time.
No, he’s right. At one time I was there, working 100 hrs a week and making $34,000/yr supporting wife and kids trying to find time to keep up with bills and when a $1.50 charge on my bank card put me under by 10cents and I deposited a reimbursement check for $20 and got lunch and a drink on the way home and a breakfast sandwich the next day and stopped at the store for bandaids for my child on my way home, the twenty would have covered all that but not the $94 in overdrafts. And when my paycheck came in and I went to pay rent, that check came back insufficient funds. By the time I was notified, I’d racked up $600 in overdrafts and insufficient funds. All over a ten cent mistake. When we do all we can out here and still have money problems, it doesn’t make us dead beats.