A dispatcher who was charged with conspiracy to commit wire fraud has pled guilty following an investigation that found that he was defrauding freight brokers by withholding freight and demanding payment before delivery.
Former dispatcher Bryan Napier worked with several different trucking companies. He would find the carriers loads through freight brokers, but then once the drivers had picked up the loads, he would call the brokers and demand payment before the load had been delivered.
Holding cargo hostage like this was obviously frowned upon by the brokers who then filed complaints. Whenever a carrier earned a bad reputation from doing this, Napier would have the carrier reopen under a new name and continue with the scheme.
This tactic ultimately led to Napier’s downfall since whenever new carriers open, they must declare if they are affiliated with any other carriers when they’re applying for operating authority. Napier’s carriers failed to do so since they (hopefully) would have been denied.
When the scam was discovered, an investigation was launched by the DOT with assistance from the FBI and the FMCSA. Napier was charged and pled guilty to conspiracy to commit wire fraud.
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Source: overdrive
Image Source: businessinsider
So its not just drivers some dispatcher was screwing over……
Not sure how I feel about this.
I mean, you ASSUME you’re going to be paid, but I’ve heard of more than one broker going into collections.
What’s the old saying? “In God we trust, all others pay cash!”