Trucking company owner sentenced to two years in prison for $2.3 million tax evasion scam

TRENTON, N.J. – A Monmouth County, New Jersey, a man was sentenced today to 24 months in prison for evading more than $2.3 million in personal and corporate income taxes between 2002 and 2011, and in 2015, U.S. Attorney Craig Carpenito announced.

Tito Viteri, 41, of Cream Ridge, New Jersey, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of tax evasion. Judge Wolfson imposed the sentence today in Trenton federal court.

According to documents filed in this case and statements made in court:

Since 2002, Viteri was the owner and operator of numerous commercial trucking companies that performed delivery services. Between 2002 and 2011, and in 2015, Viteri evaded the payment of more than $2 million in personal and business-related taxes by:

• “pyramiding” companies and using nominees as the purported owners of several of the companies in order to shield business assets while incurring employment tax liabilities;
• failing to file timely and accurate quarterly federal tax returns by falsely categorizing employees as independent contractors, for whom employment taxes did not have to be paid;
• receiving unreported kickback income from an employee;
• concealing personal income and assets by using nominees, and depositing substantial amounts of income into nominee bank accounts and failing to report that income on his personal tax returns.

In 2008, an IRS audit determined that Viteri owed approximately $785,000 in unpaid taxes for one of his companies, and that he himself owed approximately $315,000 in unpaid personal income taxes. Although Viteri began making payments to the IRS in August 2011, he stopped making those payments in December 2013, claiming he was not “bringing enough money home.” Despite his claims, from February 2013 to February 2016 Viteri made approximately $111,000 in rental payments (approximately $3,000 per month) for a property in Chesterfield. In 2016, although he still had substantial outstanding tax liabilities, Viteri purchased a home in Cream Ridge for more than $920,000. To conceal from the IRS the source of the funds used to purchase the home, Viteri arranged for the home to be purchased in his mother’s name. According to the press release from The United States Attorney’s Office District of New Jersey and justice.gov

In addition to the prison term, Chief Judge Wolfson sentenced Viteri to two years of supervised release.

Read original story HERE

Source and credits: The United States Attorney’s Office District of New Jersey and justice.gov

 iTrucker / Mario Pawlowski  

 

Story by: John Gallagher, Washington Correspondent @FreightWaves I

Management at the Federal Motor Carrier Safety Administration (FMCSA) will be pressured to address several affecting commercial drivers and their companies in 2020 based on a set of priorities unveiled by the U.S. Department of Transportation (DOT).

DOT’s Fiscal Year 2020 Top Management Challenges,” released on October 23, calls on the agency to tackle truck driver qualification, driver detention, and high-risk motor carrier interventions.

“We considered several criteria in identifying DOT’s top management challenges for the fiscal year 2020, including their impact on safety, documented vulnerabilities, large dollar implications, and the ability of the department to effect change,” according to DOT’s Office of Inspector General (OIG).

The OIG’s priority report asserts that weaknesses in “timely information sharing” between FMCSA and state driver licensing agencies has led to unqualified commercial drivers remaining on roads, including those involved in fatal crashes after previously being arrested for operating a truck while under the influence. The OIG announced on October 22 that it would be auditing FMCSA oversight of state commercial driver’s license agencies.

FMCSA must also ensure that commercial drivers maintain valid medical certificates, the OIG states, as well as crack down on medical certification fraud. In addition, “our investigations have uncovered numerous instances of fraud committed by State Departments of Motor Vehicles’ examiners, driving schools, and third-party examiners.”

Last year the OIG estimated that driver detention is associated with reductions in annual earnings of $1.1 billion to $1.3 billion for for-hire commercial motor vehicle drivers in the truckload sector. But without accurate and representative data, “FMCSA faces challenges in accurately describing how the diverse trucking industry experiences driver detention,” the OIG report contends.

“FMCSA concurred with our recommendation to collaborate with industry stakeholders to develop and implement a plan to collect and analyze reliable data on the frequency and severity of driver detention. According to the article in freightwaves.com and its author John Gallagher

Story continues HERE

Source and credits: freightwaves.com / John Gallagher, Washington Correspondent /  iTrucker  / Mario Pawlowski  

 

 

Weekly Fuel Report 10-23-19 and the actual price of  Diesel at the truck stop in the US, by Emily Ricks @FreightWaves/AmericanShipper

 

Source and credits: freightwaves.com /  /  iTrucker  / Mario Pawlowski  

 

Story by: John Gallagher, Washington Correspondent @ FreightWaves.com

A fatal crash involving a commercial driver has led to a U.S. Department of Transportation (DOT) audit of the Federal Motor Carrier Safety Administration’s (FMCSA) oversight of state driver licensing agencies.

According to the DOT’s Office of Inspector General (OIG) on October 22, the crash, which occurred earlier this year, led to an internal investigation by the Massachusetts Registry of Motor Vehicles (RMV) that found the agency “had not systematically processed out-of-state paper notifications of driver convictions” in roughly five years.

The OIG said the investigation also found a software flaw that hindered the state agency’s ability to timely process out-of-state electronic notifications. “Consequently, in summer 2019, RMV issued thousands of [commercial driver license] suspensions, based on previously unprocessed out-of-state notifications,” the OIG stated. “Accordingly, our objective for this self-initiated audit is to assess FMCSA’s oversight of State driver’s licensing agencies’ actions to disqualify commercial drivers when warranted.”

The OIG noted an increasing number of large trucks and buses on the roads. It cited FMCSA data as of June 2019, finding that fatalities in crashes involving large trucks or buses have increased 11.1% in the last five years, from 4,455 in 2013 to 4,949 in 2018.

The audit was announced at the same time the U.S. Government Accountability Office (GAO) released an oversight report revealing that from 2014 to 2017, states did not achieve fatality-related safety goals set by the National Highway Traffic Safety Administration (NHTSA). According to John Gallagher and his article in freightwaves.com

Story continues HERE

Source and credits: freightwaves.com / John Gallagher, Washington Correspondent  /  iTrucker  / Mario Pawlowski  

 

 

Story by: Alan Adler @ FreightWaves I

The impact of a United Auto Workers’ strike at Mack Trucks will nearly double next week when Volvo Trucks North America lays off about 3,000 employees because of a lack of engines and transmissions that come from a Maryland plant the companies share.

A Volvo Group spokesman on Thursday confirmed the ripple effect of the 4-day-old strike on its New River Plant in Dublin, Virginia.

“We communicated to our employees this morning that NRV will stop production Monday because of the effects of the strike at our Hagerstown powertrain operations,” spokesman John Mies told FreightWaves. “This will unfortunately result in the temporary layoff of about 3,000 employees.”

First strike in 35 years

Mack Trucks employees went on strike Oct. 13 at six facilities in three states, led by the walkout of 1,900 workers at Mack’s assembly plant in Lower Macungie, Pennsylvania. More than 3,500 workers are on strike for the first time in 35 years.

Read the full story and watch the video HERE

Source and credits: freightwaves.com / Nate Tabak, Canada Correspondent   /  iTrucker  / Mario Pawlowski  

 

Story by: Nate Tabak, Canada Correspondent @ FreightWaves

Canadian trucking company FTI owed more than C$18 million to creditors when it filed for bankruptcy in September, according to court filings that offer a glimpse into one of the few known Canadian trucking failures in 2019.

FTI Holdings, which closed in August alongside its U.S. sibling HVH, owed C$16 million of the C$18.2 million (a Canadian dollar equals US$0.76) to U.S. Bank in bankruptcy documents filed in Ontario on October 9.

FTI’s former owner, HCI Equity Partners, is seeking C$1.1 million. HCI purchased FTI in 2014 and merged it with HVH.

Filings by FTI and two of its companies reveal an expansive list of unpaid bills. They include more than C$271,000 to the Canadian government connected with taxes, C$56,000 in tolls for Ontario’s Highway 407 Electronic Toll Route, C$20,000 to the Detroit International Bridge Authority, and numerous bills for maintenance, trailers and other services.

FTI has been something of an outlier in Canada, which has seen few trucking closures in 2019 unlike the in U.S. TFI International closed its Highland Transport division in May. According to Tabak’s article @ freightwaves.com

Read the full story HERE

Source and credits: freightwaves.com / Nate Tabak, Canada Correspondent   /  iTrucker  / Mario Pawlowski  

Weekly Fuel Report by:Emily Ricks @ American Shipper/ FreightWaves

itrucker - Weekly Fuel Report

Source and credits: freightwaves.com / American Sipper / Emily Ricks /  iTrucker  / Mario Pawlowski  

 

Story by: Todd Maiden @ FreightWaves I

Freight shipments and expenditures declined on a year-over-year basis again in September according to the latest Cass Freight Index Report.

According to the report, shipments declined 3.4% in September, the tenth straight month of year-over-year declines. On a month-over-month comparison, the index improved 0.8% to its best reading since May.

Donald Broughton, founder and managing partner of Broughton Capital and author of the report, said, “the shipments index has gone from warning of a potential slowdown to signaling an economic contraction.”

The shipments index first turned negative on a year-over-year basis in December 2018 with the declines accelerating through July (-5.9%). However, the declines have slowed a bit with August (-3%) and September (-3.4%).

Trucking Industry including freight shipments

Cass Freight Index – Shipments (SONAR: CFIS.USA)

Read the full story and see all indexes HERE

Source and credits: freightwaves.com / Todd Maiden  /  iTrucker  / Mario Pawlowski  

 

Story by: Jim Wilson, Australia Correspondent @ FreightWaves

Although Super Typhoon Hagibis has caused catastrophic floods, mudslides and at least 68 tragic deaths in Japan, FreightWaves understands from local sources that Tokyo’s critical freight infrastructure – seaports and airports – are undamaged. Japan’s wider logistics network is suffering from a miscellany of damage such as flooding.

FreightWaves today spoke to several Tokyo-based correspondents for Protection and Indemnity Clubs (P&I Clubs – a specialist type of insurer for ocean ship operators).

Three independent and completely separate sources reported that they had received no damage reports for the ports in Tokyo Bay. These include the port at Tokyo along with the ports at Kawasaki (about 11 miles to the south-south-west) and Yokohama (18.5 miles to the south-south-west).

FreightWaves was also told that both Narita and Haneda airports are working normally. Narita airport has confirmed it is working normally in a written statement. Haneda has not issued a statement but its website indicates that it is working normally.

“Tokyo has done reasonably well,” an insurer told FreightWaves today, agreeing with the view that the city seems well equipped to handle typhoons. According to Jim Wilson and his article in freightwaves.com

Story continues  HERE

Source and credits: freightwaves.com / Jim Wilson, Australia Correspondent /  iTrucker  / Mario Pawlowski  

 

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