Ponzi Schemes & Ghost Drivers: Unforgettable Stories In the Trucking World
Another Week of Unforgettable Stories Welcome to another edition of our weekly hits in trucker news, where we bring you the most important and intriguing stories affecting the trucking industry. This week, we’re covering a range of captivating topics, from the excitement of the 2023 PKY Truck Beauty Championship at the Mid-America Trucking Show to the controversial amendments in trucking liability bills and the bold steps towards zero-emission transportation solutions. These stories are bound to grab your attention, as they shed light on the industry’s ongoing transformations and challenges. Stay with us as we dive into the world of trucking and explore the latest developments that are shaping the industry. Polishing for Perfection: PKY Truck Beauty Championship Kicks Off MATS 2023 The 2023 Mid-America Trucking Show (MATS) in Louisville, Kentucky, may not kick off until Thursday, but the excitement is already beginning to build in Lot J. If you find yourself behind the West Wing of the Kentucky Expo Center, you’ll be face to face with the 2023 PKY Truck Beauty Championship, taking place through Saturday. This event is attracting truck enthusiasts who absolutely cannot wait to witness this years sure-to-be amazing lineup of trucks in the competition. Truck owners have worked diligently, polishing their prized vehicles and preparing for the event’s judges to take a closer look at their pride and joy before deciding the champions at the awards ceremony on Saturday morning. The PKY Truck Beauty Championship is renown for showcasing a diverse range of trucks, from brand-new, top of the line, models to the more antique classics that evoke the nostalgia that makes our industry so special. With dozens, if not hundreds, of trucks have already entered into the competition, attendees can expect a fascinating display at the 2023 MATS event. You don’t want to miss the chance to marvel at these incredible trucks and see who takes home the top prizes in this captivating contest. If you’re interested in checking out some of the vehicles that have already made their way to lot J, check them out here: Check out the early arrivers here! Forward or Back? Iowa House Adjusts Trucking Liability Bill This story is a quicker one as it’s still unfolding, but the situation is certainly worth keeping an eye on. In a potentially controversial move, the Iowa House voted 58 to 42 to amend a potentially harmful reform bill that has its sights set on accountability amongst the dangers faced by trucking companies and their relationship with those on the roads. The bill raises the cap on lawsuit damage awards to $5 million for Iowans injured in motor vehicle crashes, more than double the Senate’s $2 million cap. Beyond that, the new bill would exempt trucking companies from liability for negligence in hiring employees while maintaining their responsibility for negligence in training them. Essentially, trucking companies are responsible for proper training of employees, but what that employee does is up to them. One Iowa State Representative Sami Scheetz acknowledged that the bill was “significantly better” after the amendment, but insisted it is “still a terrible bill.” Scheetz and Representative Megan Jones went on to share their personal experiences with tragic accidents involving commercial vehicles to place emphasis on the necessity of litigation in some cases. The bill is headed back to the Senate for another vote on the new damages award amendment, but the debate over its merit is certainly far from over. Check out more here! Behind the Wheel of Deceit: Michigan’s Multi-Million Dollar Trucking Ponzi Scheme A Michigan man identified as a “recidivist fraudster” has pleaded guilty to multiple charges related to several trucking-related fraud schemes. These schemes defrauded investors and the U.S. government of millions of dollars. Franklin Ray, 51, of Canton, Michigan, admitted guilt on March 28 to four counts of wire fraud, including one count while released on bail, two counts of wire fraud affecting a financial institution, and one count of aggravated identity theft. These charges are tied to Ray’s fraudulent activities involving CSA Business Solutions LLC and another Michigan-based trucking company. Between June 2020 and April 2022, Ray orchestrated four separate fraudulent schemes, which included two PPP frauds and a $40 million Ponzi scheme. Ray continued his fraudulent activities even after his arrest in March 2022, swindling investors of nearly $2 million while on bail. Ray falsely claimed to have purchased over 2,000 trucks using investments, but in reality, CSA Business Solutions LLC operated only a few trucks with minimal revenue from trucking activities. Ray also pleaded guilty to charges related to fraudulently obtaining $1.9 million in COVID-19 relief loans for the two trucking companies. Ray’s fraudulent schemes also involved inducing a New York City-based real estate company to pay $175,000 in startup costs for a joint venture that never materialized. The U.S. Attorney’s Office asserts that Ray continued operating the truck investment scheme even after his arrest in March 2022. Ray now faces a maximum sentence of 20 to 30 years in prison for the wire fraud charges, with an additional mandatory two-year sentence for aggravated identity theft. He has agreed to forfeit $42,128,912 and pay restitution to the victims. Check out the full story here! Dodging the Rules: ELD Vendors Accused of Facilitating ‘Ghost Co-Drivers’ Insiders have accused some Electronic Logging Device (ELD) vendors of exploiting loopholes in the Federal Motor Carrier Safety Administration’s (FMCSA) technical specifications to allow trucking companies and drivers to add “ghost co-drivers” to bypass hours-of-service (HOS) rules. A recent example surfaced with a driver using ELD Rider software, which allowed a ghost co-driver to be added within 15-20 minutes after contacting the company. This enabled the driver to have nearly 10 hours of additional driving time and extended their driving cycle before taking a federally mandated break. FMCSA has started to crack down on ELD providers that do not meet federal requirements, as they have removed five devices from their registry this year, which is more than in the previous four years. While the agency did not confirm…
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