U.S. Department of Transportation Inspector General Kenneth M. Mead and Federal
Motor Carrier Safety Acting Administrator Annette M. Sandberg today stressed
the importance of the indictments of 16 household goods carriers and 74 individuals
as a message of deterrence to those engaging in household goods moving schemes.
Mead and Sandberg made their comments after the U.S. Attorney for the Southern
District of Florida, Marcos Daniel Jimenez, announced the charges, which resulted
from a two-year investigation by the FBI, the U.S. Department of Transportation's
Office of the Inspector General and local law enforcement agencies.
"Today's indictments mark the most significant, concentrated attack by
law enforcement against alleged corruption in the household goods moving industry
ever made in DOT history," Mead said. "We couldn't have gotten to
this point without the unified efforts of the U.S. Attorney's office, the FBI
and local law enforcement. Fraud in this industry affects thousands of victims
every year in the United States. The unsealing of the indictments today should
make it clear that law enforcement efforts are focused on eradicating these
types of illegal activities."
"Today's activity illustrates the commitment of the Departments of Justice
and Transportation to protecting the moving public," Sandberg said. "In
addition, we are increasing our efforts to educate the public about their rights
and responsibilities when moving to ensure the public is better prepared to
recognize unscrupulous household goods movers."
USDOT's Office of the Inspector General investigates household goods carriers
alleged to have engaged in egregious and intentional patterns of defrauding
consumers. Since 1998, the Office of the Inspector General, in conjunction with
the FBI and other law enforcement agencies, has opened 16 cases and closed 5
cases involving egregious examples of moving fraud involving household goods.
Not including today's indictments, these investigations have resulted in charges
being brought against 15 moving companies, 19 employers, operators, and other
employees of household goods moving companies involving fraud against more than
2,000 consumers. So far, 16 people have pleaded guilty and been ordered to serve
a combined 13 years in jail, pay $126,500 in fines and $3,476,501 in restitution
to defrauded consumers.
The Federal Motor Carrier Safety Administration (FMCSA) is a DOT safety agency
that investigates and takes enforcement action against motor carriers that demonstrate
a pattern of violating safety and commercial regulations. Through publications,
the FMCSA also educates consumers about their rights and responsibilities when
hiring and using household goods movers.
Carriers found to be in violation of household goods regulations are subject
to fines of not less than $1,000 per violation for each day the violation continues.
Since October 2000, FMCSA has taken enforcement action against 20 household
goods carriers and imposed fines totaling $948,000.
While FMCSA is primarily a safety agency, it is charged with oversight of the
interstate moving industry. It does not have the authority to settle loss and
damage claims or obtain reimbursement for consumers seeking payment for specific
charges. In transferring oversight of the household goods moving industry to
the DOT from the Interstate Commerce Commission in 1995, Congress encouraged
consumers to use neutral arbitration or pursue legal action against the mover
to protect their interests.