A carrier executive has admitted to accusations that he improperly diverted $2.7 million that should have gone to truck drivers, but instead was used to line his own pockets. The former executive now faces up to 20 years in prison for his crimes.
Alexei Rivero was the vice president of Florida Carrier & Brokerage Service Inc. from March 2011 through September 2013. Florida Carrier was primarily a mail hauler contracted with USPS. As part of the contracts Rivero signed with the postal service, he agreed to pay Florida Carrier drivers as employees and provide them with the benefits that employees would be entitled to including health insurance costs, vacation and holiday pay, etc.
Instead, Rivero allegedly deliberately misclassified drivers as independent contractors, denying them fair pay and benefits. Over the course of Rivero’s tenure, USPS paid Florida Carrier approximately $1.5 million that was supposed to go toward employee benefits and approximately $1.2 million that should have gone toward employee payroll taxes. As such, drivers missed out on $2.7 million over just two and a half years.
Rivero pled guilty to two counts of Wire Fraud and is scheduled to be sentenced on August 23rd. Because of his guilty plea, Rivero will likely serve far less than the 20-year sentence he could otherwise face.