The three former heads of USA Dry Van Logistics (USADV) have been arrested by the FBI on charges of wire fraud and conspiracy to commit wire fraud. All three were allegedly part of a revolving line of credit scam that cost GE Capital more than $26 million.
None of the three are currently employed by USADV, but they were the CEO, COO, and controller when the scam took place. The scam worked by falsely inflating their company’s financial performance data in order to appear more profitable to GE, who would then up their amount of available credit, which they would use to transfer the amounts they claimed to be making in to their accounts, allowing them to falsely inflate their performance again, and repeat the process over and over.
When GE Capital worked out what was actually going on, USADV filed for bankruptcy and once the debt was wiped clean, reopened under new ownership.
Both crimes the defendants are being charged with are punishable by up to 20 years in prison and a fine of up to $250,000. This means that each defendant could find themselves spending up to 40 years in jail and having to pay $500,000.
For more information, you can read the FBI press release here.
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Source: fleetowner, fbi
Image Source: fbfaster
The BANKERS should be arrested and thrown in prison.
Do you know where all money comes from? It is created out of thin air by people called bankers. Here’s how the scam works: Imagine you are buying a used truck for $40,000. You go to the banks and request a loan. If you are approved, you sign a promissory note. At this point, the banks issues you credit based on your promise and ability to repay the loan. Usually, this new credit is put straight into your bank account, but sometimes they create it in a separate, in-house account from which they issue you a bank check. They create this credit on the spot, right after you sign the loan documents. The so-called “money” did not exist before you signed the note. You then work your a** off for a few years to pay back money to banker who never had the money in the first place….PLUS INTEREST!!!
As the original principle amount of $40,000 is repaid, this so-called money (actually just bank credit) is destroyed. However, the INTEREST collected is the bank’s gross profit and remains in existence.
This raises two more interesting points: First, the banks are making a much higher percentage interest rate than advertised. If you pay them $20,000 in interest, but they never lent you any actual money (they created it out of thin air), what is the interest rate? Impossible to calculate, but it is definitely higher than the 10% they claimed, and definitely higher than any state’s definition of usury.
Secondly, now that you know where money is created, who do you think is responsible for rising prices and inflation? The definition of inflation is “An increase in prices due to a gradual loss of value of currency because of an INCREASE IN THE SUPPLY OF MONEY AND/OR CREDIT.” So, those higher prices you pay for everything are a result of bankers continually increasing the money supply as part of their parasitic debt-enslavement scam.
Modern banking is called “fractional reserve lending” but it should be called “legalized counterfeiting.” The courts cover it up and perpetuate the evil. I know of many people challenging the so-called loans in court because the so-called money never existed, and the judges wont hear any of it and usually threaten the defendants with contempt.
These trucking executives sound like slime balls, but how are the bankers at GE victims? The so-called “money” they lent was conjured out of thin air by ledger entry or computer entry in about twelve seconds. Why should three men rot in prison and untold thousands be kicked out of their homes when bankers get away with this crap?
What about the money they paid to the seller for your purchase? That is real money. Blows your whole story out of the water.
Pete: right on the$$$
It reads to me that the only reason that they were arrested and charged as the criminals is because they cost GE Capital more than $26 million.
Had they stole from you or me as the giant companies usually do….no problem….
You took the words out of my mouth. Where is the culpability for the mortgage scandals? The banks paid billions in fines (which costs the customer, not the bank), yet not one CEO goes to jail. I guess ‘too big to fail’ means ‘too corrupt to punish’.
Well it might seem like this is a good way to make money, 26 million and the fine is $500k leaving $25.5 million in the “bank” and you can get 5-10 with sentence reduction. then retire with the proceeds from the crime.
Pete, there are federal banking laws, regulators, and auditors, that prohibit banks from doing what you are describing, lending money without having adequate cash to back the loans.ii
FRACTIONAL RESERVE BANKING, LOOK IT UP CAPTAIN SWEAT PANTS