Legal issues

This week: Double brokers grab $1M in toys and porch pirates have a dance off

Surveying the issues in the strike against Amazon by the Teamsters union and defining an “employee” can get tricky.

The Teamsters are making gains at Amazon and among the company’s direct service providers, but the e-commerce retailer says not so fast.

An online auction was underway Tuesday to sell some of the assets of intrastate trucking company D.A.F.S. Transport of Monahans, Texas, which operates primarily in the Permian Basin in West Texas.

Pavel Ivanovich Turlak pleaded guilty Friday in the Eastern District of Washington to violating Clean Air Act emissions controls and to fraudulently obtaining COVID-19 relief money.

DAT Freight & Analytics spoke with FreightWaves about DAT’s acquisition of Trucker Tools and how it plans to address connectivity issues, fraud and customer needs in the new year.

In late 2024, retail giant Macy’s revealed a shocking accounting scandal involving its parcel delivery expenses. It said a single employee had managed to hide approximately $151 million in delivery costs over nearly three years, causing significant disruption to the company’s financial reporting and raising questions about its internal controls.

A key case regarding California’s ability to receive environmental waivers, Ohio vs. EPA, won’t be taken up by the Supreme Court.

TQL isn’t satisfied with its victory in a federal appeals court; it wants the Supreme Court to take up the question of broker liability.

In a stunning turn of events, California-based trucking company Kal Freight Inc. has filed for Chapter 11 bankruptcy protection, unveiling a web of fraudulent activities that have sent shockwaves through the industry. The company faces serious allegations of financial misconduct and asset mismanagement.

The ability of California to receive a waiver for tougher environmental rules will be taken up by the Supreme Court.

A West Virginia-based trucking company, which hauls coal, logs and wood chips, recently filed for bankruptcy.

The manager of a New York-based freight forwarding company is facing criminal charges alleging she violated federal export controls by illegally shipping oil and gas products to Russia.

Logistics firm Freight Essentials filed a federal lawsuit against WWEX Group and its affiliates, alleging that the company is engaging in fraudulent business practices with hidden fees.

This week: Blue Yonder deals with a massive cyberattack and FreightWaves’ shares tips for dealing with porch pirates.

Cassandra Gaines, CEO of Carrier Assure Inc., discusses the fraud crisis in the industry and how carriers can combat it.

The latest indictments in the Louisiana staged accident case have pulled in two attorneys and two New Orleans law firms and eight persons in total.

Kal Freight, a Texas-based trucking company that filed for Chapter 11 bankruptcy last week, does not plan to lay off any drivers.

The U.S. Supreme Court has declined previously to review cases involving the question of broker liability after serious trucking accidents but has been asked to weigh in again.

The Rhode Island truck tolling plan got a mixed verdict in a federal appeals court but has new life.

Boeing’s plea deal regarding criminal fraud conspiracy charges over two fatal 737 MAX accidents has been rejected by a federal judge.

A federal court upholds an order requiring China-based ByteDance to sell TikTok or face ban in the US.

Class I freight railroad CSX has appealed to the U.S. Supreme Court to continue its antitrust lawsuit against Norfolk Southern.

Recent headlines reveal how freight fraud is no respecter of national borders. Authorities have arrested Shenghua Wen, a Chinese national residing illegally in the U.S., on suspicion of exporting firearms, […]

A Chinese national illegally residing in the U.S. was arrested Tuesday on allegations that he exported firearms, ammunition and other military items to North Korea from Long Beach, California.

The Werner case, now more than 6 ½ years old since it became a nuclear verdict, went before the Texas Supreme Court on Tuesday.

A Texas wholesaler and retailer is on the hook for a $1.9 million tax bill for tractor-trailer tires it bought from Chinese manufacturers.

The New Jersey attorney general has filed arguments against tossing the indictment that includes NFI CEO Sidney Brown.

A California man was sentenced to two years and nine months in federal prison for embezzling nearly $1.6 million from the Fresno-based trucking company where he worked for 15 years.

As Thanksgiving celebrations near, supply chains face a surge in criminal activity.  A recent CargoNet report highlighted 174 thefts worth $7.84 million during Thanksgiving week over the past five years, […]

A former NFL player and his business partner, who were co-owners of a construction business and trucking company, and their bookkeeper face fraud charges after prosecutors claim they engaged in a scheme to obtain $1.4 million through the Paycheck Protection Program.

Trailer manufacturer Great Dane has reached a settlement with the DOJ over the company’s hiring practices for noncitizens who are in the U.S. legally.

A former driver for Walmart has won an almost $35 million verdict against Walmart after he was fired following an injury.

Areas of California, Illinois and Texas have been key targets for cargo thieves in recent years.

Echo Global has been removed as a defendant in a fatal crash case, another victory for brokers seeking to avoid liability.

Department store retailer Macy’s, Inc., stated on Monday that an employee hid up to $154 million through intentional accounting errors starting in 2021.

A co-owner of a Massachusetts trucking company was sentenced to two months in prison after admitting that he falsified driving logs and lied to investigators in connection with a fatal collision involving the driver of one of the carrier’s trucks.

UPS is paying a steep fine to the SEC for how it valued UPS Freight before it was sold to TFI.

This week: Fraud tech captures FreightTech awards’ top spot, Circle Logistics shares its fraud prevention strategy and Guy Fieri just wants his tequila back.

The owner of a Florida trucking and logistics company has been convicted for his role in a three-year truck investment Ponzi scheme that bilked investors out of $112 million.

At FreightWaves’ F3: Future of Freight Festival, trucking-focused attorney Matthew Leffler said the $100 million-plus Werner case is “the most important case facing the trucking industry now.”

Ryan Joyce, a former CIA operations officer, drew on his experience tracking terrorist networks to execute the company strategy to fight freight fraud.

Freight Masters Inc. owner Herman Shaw was sentenced to 30 months in prison for his role in a scheme to defraud the Paycheck Protection Program.

Samsara Inc. filed a new lawsuit accusing rival Motive Technologies CEO Shoaib Makani and its executives of engaging in a “multi-year campaign to procure Samsara Trade Secrets” to compete with Samsara in the fleet management market.

Welcome to the inaugural edition of Fraud Watch, FreightWaves’ dedicated newsletter tackling the burgeoning crisis of freight fraud.

A Florida jury awarded $125 million in punitive damages and $16.5 million in other damages against a small trucking company that no longer exists.

California’s attorney general’s office has filed a brief against OOIDA’s attempts to block the AB5 independent contractor law from the state’s trucking sector.

The freight industry must take a series of steps to combat an epidemic of fraud.

Bipartisan bills including the Safeguarding Our Supply Chains Act and the Combating Organized Retail Crime Act of 2023 propose significant federal support to address the increase in freight fraud and organized retail crime.

Two incendiary devices bound for delivery by DHL from Europe to North America were discovered this summer, prompting Western officials to investigate their origin.

A group with trucking interests as a key driver has been formed in Texas to push new tort reform.

A former bookkeeper for an Iowa trucking company was sentenced to two years in prison after a guilty plea.

A Virginia engineer was sentenced to seven years and six months in federal prison for his role in an investment fraud scheme that bilked investors out of over $15.6 million after purporting that he had lucrative engineering inspection contracts for federal and state government infrastructure projects.

As FreightVana CTO Don Everhart moves into his new role at Transflo, he answers FreightWaves’ questions on hot FreightTech topics.

EFW, a company that specializes in passenger-to-freighter conversions, is shutting down its U.S. assembly plants because of shortages in skilled labor and other problems that have delayed delivery of large aircraft to Amazon.

According to a new report by Becker Logistics, cargo theft varies seasonally and by mode and location.

A Texas trucking company and its affiliated companies have shuttered operations and recently filed for bankruptcy liquidation, citing serious financial conditions as the main reason.

Trucking and marijuana use was the background issue in arguments before the U.S. Supreme Court this week regarding a driver who was dismissed for failing a THC test even though he hadn’t used marijuana.

Backers of California’s AB5 independent contractor law have scored a fresh victory after the U.S. Supreme Court declined to review the Postmates/Uber case.

The first-ever Freight Fraud Awareness Day, taking place on Tuesday, aims to unite the supply chain community in tackling schemes like double brokering and cargo theft, which have seen a 400% rise since 2022.

A demand spike in truckload markets can leave independent drivers particularly vulnerable to fraud and theft.

In this edition: TIA releases its ‘State of Fraud’ report and Forward Air remains chaotic.

NFI CEO Sidney Brown has filed a motion asking a judge to dismiss his criminal indictment stemming from a New Jersey real estate dispute.

A second front will be opened in the legal battle over whether Amazon is a joint employer of drivers along with its delivery service partners.

A Wyoming trucking company owner is facing an Equal Employment Opportunity Commission lawsuit alleging that he sexually harassed multiple female employees.

As cybercriminals evolve, companies must adopt cutting-edge defense strategies to protect their operations from significant financial and reputational damage.

Another executive at Polar Air Cargo has been sentenced to prison for defrauding the company for more than a decade.

NFI CEO Sidney Brown and other defendants in the criminal case related to the Camden, New Jersey, waterfront redevelopment have moved for dismissal.

Digital freight broker Next Trucking and sister trucking company Next Freight Solutions may close after furloughing most of their remaining employees and drivers, according to sources familiar with the situation.

A high-level executive at a prominent air cargo company was sentenced to prison for defrauding the company.

Freighter operator Western Global Airlines will pay $85,000 in backpay to female workers to comply with federal rules.

The families of those who died in the Francis Scott Key Bridge collapse in Baltimore have filed wrongful death claims in federal court against the owner and operator of the container ship Dali.

A Transportation Intermediaries Association report says the freight industry is “under siege” from fraud and must evolve to fight the ballooning problem.

The U.S. Department of Justice on Wednesday filed a federal suit against the owner and operator of the Dali, the container ship that struck the Francis Scott Key Bridge, causing it to collapse.

Canadian supply chain SaaS provider Descartes acquired MyCarrierPortal, which provides brokers and shippers with carrier onboarding and risk monitoring tools.

U.S. Rep. Dave Joyce is spearheading an effort to have the Department of Homeland Security do more to combat organized retail crime in America.

Aaron Rudolf, who owns Rudy’s Performance Parts in Burlington, North Carolina, must pay $10 million in criminal and civil fines for an emissions defeat device scheme.

Daimler Truck North America is the latest trucking-related company to get hit with a nuclear verdict.

A driver who lost his job after taking a CBD product he thought didn’t have THC is about to argue before the Supreme Court that he should be able to sue the manufacturers under the Racketeer Influenced and Corrupt Organizations Act.

Truckstop.com’s Brent Hutto discusses the company’s zero-tolerance policy toward fraud and its recent work with the FBI.

With fraud on the rise, verifying carriers has become one of the top ways shippers can fight fraud on the front lines.

The Department of Labor has clawed back hundreds of thousands of dollars in back pay owed by Transair, a Hawaiian cargo airline that is no longer flying.

The Texas Supreme Court will hear an appeal by Werner Enterprises in a long-running, $100 million nuclear verdict case.

U.S. and Guatemalan authorities say they have dismantled a human smuggling enterprise in Guatemala responsible for the deaths of 53 migrants in a tractor-trailer in San Antonio in 2022.

Christopher Carroll, 54, of Farmington, Missouri, was found guilty by a federal jury for fraudulently obtaining nearly $3 million in Paycheck Protection Program funds.

A former executive at Polar Air Cargo received jail time as punishment for defrauding the company.

A former trucking company owner from Acworth, Georgia, reported to prison Thursday, a day after a federal judge denied a motion to postpone his surrender following his sentencing in a Paycheck Protection Program fraud scheme.

While the company continues to deny any wrongdoing, TuSimple has filed to settle its federal fraud case.

As nearshoring increases the volume of products carried across the U.S. border, seizures of illegal narcotics from freight are also on the rise.

Corey Louis Hendrickson, 46, a former mayor of Willard, Missouri, and fleet dispatcher for Prime Inc., was sentenced to three years in federal prison for a scheme in which he used the names and Social Security numbers of drivers to steal money.

A regional decision by the National Labor Relations Board undermines Amazon’s delivery service partner model and will force greater recognition of unionized workers by the retail giant across the country, according to the Teamsters union.

The Supply Chain Council has extended its executive team and plans to be a national rather than “California-first” organization.

The California Trucking Association is ending its long-fought legal battle against the state’s AB5 independent contractor law.

A Dallas family of seven has filed a federal lawsuit against a North Carolina trucking company and its driver after they were seriously injured in a crash involving an 18-wheeler last November.

The American Transportation Research Institute has launched a survey to study cargo theft in the trucking industry, which is estimated to be a $15 billion to $35 billion problem annually.

A federal appeals court on Tuesday tossed out the Surface Transportation Board’s streamlined process for resolving rate disputes between shippers and railroads.

Four people, including two children, are dead after a crash in Minnesota involving a semitruck in a construction zone.

A federal court decision on an Illinois employment law could pose a legal threat to carriers well beyond the state’s borders.

Two Midwest importers have settled a customs fraud case with the U.S. government for $10 million.

The Federal Motor Carrier Safety Administration on Thursday removed two ELDs from its registered list.