A freight broker has been caught committing fraud for what is now at least the fourth time, having stolen approximately $600,000 from at least 100 people over the last few years.
Gregory Sclafani pled guilty to mail fraud after he admitted to defrauding customers of hundreds of thousands of dollars using multiple different transportation brokerage companies.
In November of 2009, after receiving multiple complaints from victims of his fraud, the State of New York filed a lawsuit against Sclafani and the four freight brokering companies he was running at the time: Eastern Connection, Inc., A-Blue Knight Auto Carrier, Inc., Autotrail Transporter Company, Inc., and V & C Warehouse & Distributing Inc.
The companies were shut down and Sclafani was ordered not to continue operating as a freight broker. He apparently ignored the order since in 2012, more complaints started rolling in about his new company, USA Logistics, Inc which was based in Connecticut. He had registered the company with the FMCSA as a carrier, apparently to get around his freight brokerage ban, but his operating authority had been revoked in early 2012. Once he was found out, he closed the doors of this company as well.
He opened up shop and was promptly closed down again with New Logistics, LLC in North Carolina (using the address of a graveyard as his business address) before moving up to Connecticut to open his latest company which he operated from his home in Southampton.
Sclafani would get customers to send him their private financial information so he could withdraw money directly from their accounts. Once he had access, he created fraudulent checks, making unauthorized withdrawals. In some cases, he never even booked a truck to haul the customer’s freight.
Source: overdrive, patch, thetrucker
Why are these guys not in Jail?
With $600K he can afford the best lawyers (Ly-ers!)
Because the money the feds confiscate consistently ends up being a perpetual slap on the wrist to the perpetrators who commit the crime, while the money get lost in the black hole of the government, or the courts, or etc. But it never gets refunded back to those from whom it was stolen in the first place.
and brokers wonder why their bond requirements are raised
The flip side is that people are stupid enough to send him their bank account information too
He needs to be burned alive, slowly. What a scumbag
This is another example of why some customers refuse to use cargo brokers under any circumstances. Can you blame them? “Once bitten, twice shy.” Thieves like this guy perpetuate the negative reputation which has been cast upon all brokers for many years. Until the states and federal government enact severe penalties for this type of theft, nothing will change. A first offense of this nature should carry at least a 10 year sentence. That would have saved hundreds of thousands of dollars from being stolen.
This is why all brokers should be forced to carry a bond that fully covers every load in process regardless of the value of the load.
There should not be a required minimum nor a cap on the bond, it should be adjusted by what loads are in process at any given time and proof of that bond should be a part of the load confirmation process.
You gotta give him credit for cajones, showing his address as a graveyard. A Google Satellite view of his address would have tipped off any shipper or driver stupid enough to book a load through him.
You cannot blam anyone untill you are not careful enough. Ask them how they pay and what is there pay prectice. Get fuel money and have them mail yoi a check of rest of the amount. Ask them about$500.00 extra what they are telling you. Get smart and do not get robed by these thugs.
This guy is a real scumbag but you know what the trucking industry lets this happen along with these crooked politicians who are making new laws against truckers every day but the broker gets paid all the money upfront
So, back in the days with unions and Hoffa this Sclafani guy would have been taken care of and rightly so. What I have a problem with is freight brokers screwing the last drop of money out of truckers. It amazes me how these brokers are still walking around….When I ever take a load from a freight broker and it’s rare, I demand 40% cash or cashers check up front and the balance in 15 business days from the date on the envelope when I certified mailed the bills. Usually the crooks tell me “I’m way out of line” and I hang up…..