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. From a Nebraska couple sentenced for embezzling thousands of dollars from drivers, to a major acquisition in the US trucking sector, and the innovative trucking simulator setting high school students up for success, these stories are bound to grab your attention. Stay with us as we dive into the world of trucking and explore the latest developments that are shaping the industry.
Nebraska Couple Sentenced for Embezzling $140K from Drivers
Owners of B&B Midwest Trucking, a Nebraska-based company, have been sentenced for failing to pay over employment taxes to the Internal Revenue Service (IRS). William H. White and Sarah A. White, the husband and wife who owned the company, withheld federal income taxes and FICA taxes from employees’ paychecks between 2015 and 2018, totaling $144,220.31 for B&B and $281,827.44 for another of their companies, 419 LLC. Instead of paying the taxes on time, the couple used the funds to pay other creditors and for personal expenses.
William White was sentenced to a year and a day in prison, followed by three years of supervised release, while Sarah White received three years of probation and a $10,000 fine. They were also ordered to pay $426,047.75 in restitution. The employer share of payroll taxes was paid before sentencing. According to the U.S. Attorney’s Office for the District of Nebraska, the Whites had sufficient funds to pay the taxes but chose not to, gaining an unfair competitive advantage over other businesses.
The IRS Criminal Investigation’s Field Office wants to remind business owners that they have a significant duty to collect and turn over all IRS withholding taxes, and those who fail to do so will be prosecuted to the fullest extent of the law. This case serves as a reminder that not paying taxes can result in severe consequences, including criminal charges, imprisonment, and fines.
To read more about this story, click here.
Trucking Company Owner Reunited with $39,500 After Seizure by Phoenix Police
Jerry Johnson, the owner of a North Carolina-based trucking company, has finally been reunited with $39,500 that Phoenix police seized through civil asset forfeiture in 2020. Johnson was accused of being part of a money laundering operation and had his cash confiscated after police found the money split between his carry-on and checked baggage at Sky Harbor Airport in Phoenix. However, Johnson was never charged with a crime related to the money.
Under civil asset forfeiture laws, the government can seize property it believes is connected to a crime, even if no one is charged, and it’s the responsibility of the property owner to hire an attorney to get it back. The Institute for Justice, a libertarian legal advocacy group, took up Johnson’s case, and the Arizona Court of Appeals ruled in May 2022 that Johnson could contest the seizure. Prosecutors moved to dismiss the case in February, and Johnson got his money back.
Although Johnson’s money has been returned, the case isn’t over yet. The Institute for Justice is still fighting over whether the state should pay him standard interest on the money and whether he’s owed attorney fees from the period before the group began representing him pro bono. The ordeal has created a significant financial burden for Johnson and his family, and he missed out on business opportunities because the money was held in a government account for nearly three years.
To read more about this story, click here.
Major Takeover in US Trucking: Knight-Swift’s Acquisition of US Xpress
Knight-Swift, the largest player in the US truckload industry, is set to acquire US Xpress in a deal worth about $808 million, the biggest takeover in US trucking in years. According to the two companies, US Xpress will add about $2.2 billion in annual revenue, a boost of around 30%, to Knight-Swift’s turnover, with $1.8 billion generated in the truckload segment. The smaller carrier has struggled in recent years, with a net deficit of $40.5 million in 2022 and a restructuring plan to reduce costs by $25 million a year.
The acquisition is an opportunistic move for Knight-Swift, and a rare opportunity for shareholders in US Xpress to get a generous return on their investment. The deal is expected to close by the end of the second or early in the third quarter, and US Xpress will continue as an independent brand. Despite the high purchasing price and outstanding debt, some observers believe the takeover could prove a bargain for the larger player if it manages to turn US Xpress around.
As headwinds for US truckload operators are not expected to disappear in the near future, pundits have predicted more consolidation in the coming months. Knight-Swift’s acquisition of US Xpress affirms its interest in growth through acquisition, with president and CEO David Jackson signaling that it won’t be the final move of the company this year.
To read more about this story, click here.
Steering Success: How A Trucking Simulator is Setting Students Up For Success
Richland School District One in South Carolina is offering a unique program for high school students to help them get a commercial driver’s license (CDL) and jumpstart their careers. Eau Claire High School is leading the way with a 45-student program that recently received a big boost by installing a brand new trucking simulator. Students can now learn space management, speed management, and hazard prevention without the risk of damaging a vehicle or themselves. After completing the program, students will have hands-on training and experience that could give them a competitive advantage in securing a job.
Rick Todd, president of the South Carolina Trucking Association, says trucking is universal and a skill needed across the country, adding it can be a lucrative job with salaries of up to $100,000. Companies are always trying to up their game and get the best drivers they can find. For Keshawn Hair, a student at Eau Claire, completing the program and obtaining a CDL is the first step towards owning his own vehicle and potentially starting his own company. The hope is to expand the program to other students in the district and give them the same opportunities to excel in the trucking industry.
To read more about this story, click here.
Clean Freight Coalition: How Trucking is Going Green
A new coalition, the Clean Freight Coalition (CFC), has been established to serve as a unified voice for major trucking industry stakeholders, including motor carriers, truck manufacturers, and dealers. The CFC aims to educate policymakers on the trucking industry’s progress in reducing emissions, promote ongoing work to decrease greenhouse gas emissions, and advocate for public policies that enable a zero-emission future while maintaining affordable and reliable freight transportation.
Jim Mullen, an industry veteran with significant regulatory, legislative, and legal experience, will serve as the CFC’s executive director. Members of the coalition emphasize the need for a national energy strategy that considers the trucking industry’s vital role in the supply chain, as well as the importance of updating the aging US truck fleet with cleaner, safer trucks. As the US commercial trucking industry undergoes a transformation towards zero-emission equipment, such as electric and fuel cell-powered trucks, the CFC stresses the need for clear national standards that support innovation and industry investment. The coalition also calls for government policies that provide lead time, regulatory stability, and infrastructure development to ensure a successful transition.
To read more about this story, click here.
Before You Hit The Road…
We hope you enjoyed this week’s roundup of important trucker news! As always, we want to hear your thoughts and opinions on these stories, so be sure to leave your opinion in the comments below. Together we can stay informed and engaged. Don’t forget to check back next week for another edition of our weekly trucker news roundup.
If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read it. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.
