Scam broker alert⚠️ EAST WEST LOGISTICS

Discussion in 'Freight Broker Forum' started by KB3MMX, Feb 16, 2023.

  1. Long FLD

    Long FLD Road Train Member

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    There are already regulations that deal with double brokering loads. Adding more regulations won’t make it more illegal and they probably wouldn’t be enforced any more or less than the current regulations.
     
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  3. ZVar

    ZVar Road Train Member

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    Except it's not illegal to double broker loads. You might want it to be, but the simple fact is the only time it's illegal is when it's otherwise used to commit fraud.
     
  4. Avrakotos

    Avrakotos Medium Load Member

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    That is completely incorrect. You can not call me and book a load using a carrier MC# with the intent to deceive me into thinking the MC# you used to book the load is hauling my freight, then repost it on DAT and hire a different carrier to move the freight. IF there is a claim, no ones insurance is covering anything. If you intend to take a load from a broker, there needs to be an agreement in place if you plan or re-brokering . Our rate con specifically says no re-brokering of any shipment is permitted under any circumstances. And yes putting additional laws and regulations in place will curtail the scammers and double brokers. But DAT, brokerages, and carriers do their due diligence when vetting who they work with.
     
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  5. ZVar

    ZVar Road Train Member

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    That's exactly what I said. Simply double brokering isn't illegal. It's only when used to commit fraud that it becomes illegal.
     
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  6. Avrakotos

    Avrakotos Medium Load Member

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    Add jail time and serious penalties - like blacklisting and not being allowed to open 30 different scam MC#s anymore. Bar them from working in the industry. There are ways to stop it. But seems like most carriers and brokerages are either to dumb or just dont care or like running a load from CA to MA for $15,000 and never getting paid for it. I know it must be fun paying an additional $50,000 to the actual delivering carriers on loads that were double brokered, after the carrier you paid ran off with the money. OR being liable for a 10 million dollar lawsuit because the carrier you gave a load to double brokered it and the new carrier kills someon on the road.
     
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  7. Avrakotos

    Avrakotos Medium Load Member

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    To double broker or re-broker my load, you have to tell me you are going to do so when you book it.
     
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  8. KB3MMX

    KB3MMX Road Train Member

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    FMCSA needs to enforce these scammers that don't pay and at least check the credibility of their Bonding companies
     
  9. Avrakotos

    Avrakotos Medium Load Member

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    Agreed. There needs to be more accountability from FMCSA in handling this matter. I forget the numbers, but its an insane amount of money they skim from legit brokers and carriers annually. Like why is it so easy for me to get a PO box a Kinkos, create 9 carrier MC#s and 2 broker MC#s, self report my number of trucks, get a DAT and just double broker ? Landstar does this, the Armenians just copied the business model, sans the actual trucks, and do the same thing from the motherland. Why is there no enforcement? Why is it so easy for me to uncover all of this info while working 80 hour weeks? If i can do it, surely a federal investigator can blow the lid off right?
     
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