DOUBLE BROKERAGE AND DOUBLE PAYMENTS - NEED Answers...

Thank you for your valuable input, and I think you are right, the main thing here is making sure the MOTOR CARRIER got paid before even thinking about getting involved in the deal between these 2 broker fools. I realize that most of what is going on in my situation is in line with what you are saying, Baxter & Bailey are the ones handling this issue and they went straaaaaight for our customer (shipper on BOL) because I checked today and the original broker has no bond as of Feb 2020.
I see now that this is a clear case of double brokerage and the first broker is trying to fraud the second one but ultimately, the 2nd broker has no case unless doesn't they them selves don't plan to the Motor Carrier? LOL...what I wanted to be sure about was what statue makes the double brokerage illegal?
I will continue to read the 49 CFR but so far I have not found anything that explicitly says a broker cant hire another broker. The only thing I can say for certain is the 49 CFR allows brokers to work with MOTOR CARRIERS, but I want to read about if 49 CFR clarifies if brokers can really work with other brokers and what the regulations / reqs are.
Thanks again for the helpful info!!

49 CFR § 371.2

"Broker means a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized MOTOR CARRIER. Motor carriers, or persons who are employees or bona fide agents of carriers, are not brokers within the meaning of this section when they arrange or offer to arrange the transportation of shipments which they are authorized to transport and which they have accepted and legally bound themselves to transport."

 

Its crazy how far people will go but yes, they will set up entire 2nd and 3rd companies to manage the scam! I initially thought the 2 brokers are working against me! hahaha who knows really -.- ! Yes, its just that there is a huge market of SUCKERS because it takes a while to understand all of the dealings of the names on the BOL, the responsibilities of each person, CLAUSES!!, how sneaky people can be, how much risk you take becuase of other peoples actions and especially lack of knowledge/experience ! So I get it, I'm just glad that these forums are available and about everything I'm learning so my business does not have to suffer in the future over any of the things I just mentioned.

 

What @wichris said is pretty true in most cases.

Sometimes you have to eat a turd sandwich to keep the customer out of the mix. You don't want to, but it's your responsibility as the broker to keep that from falling on their heads.

@Midwest Trucker has also offered some good perspective here. The thing is, the actual hauler of the freight needs to get paid. And if it means you gotta pay twice, well- that's a lesson for you in all of this. An expensive one, no doubt, but it's one that'll stick with you.

 

Can u link the armenian thread plz @Midwest Trucker

 

I do t have time right now to read my old thread but I think it was this one. I can’t remember if I knew it was them at that point or not. Took my wife a lot of months of research. We ended up finding the guy, he’s a known fraudster.

Shady People and Double Brokering

 

Thank you bud i appreciate it. Just wanna pick up on some of your detection tools.

 

Good checking will usually find the "carriers" that do this often. The others do it as they are going out of business. That is a lot harder to determine. Go with the first instinct, especially if it seems too good.

 

Sorry i should of read thread to grasp what happened.

 

Here is from my earlier post in this thread. These things help a lot. It might seem like overkill but it’s worth the extra time and effort and the customers we deal with are happy to oblige since were protecting them and their freight.

“Sorry for the bad news. I would recommend you get the drivers phone number, personally talk to them, make sure that Macropoint is tracking, have them send you a pic of their tractor trailer with the name on the side, and then have your customer verify it matcheswhen they show up to load.”

It’s also good to call their insurance and get added as the certificate holder instead of them sending it to you. Check out their address and see if it’s a real place. Call their phone number and see if someone answers or if it’s a circle of recording hell. Check out their safety ratings and see if they get actual inspections done. See if their truck is actually where they say it is or if they have to hurry to cover it and it’s not where it’s supposed to be. You begin to just get a gut feeling and holes develop in what your being told. Obviously any type of fuel advance or even quick lay is also a red flag. Most people factor, and those who don’t aren’t worried about fuel money. There are also hot beds for the fraud in certain cities.

Some of the one truck owner ops are a little surprised at this stuff at first but then they’ll say hey bro I’m the load booker and the driver, so no worries I get it here’s my info. Once we explain some of the games we have to protect against they are blown away. But having that single man op I know it’s going to get done and with good communication. Puts us at much more ease.