This is a copy of an email that went around from PEEL POLICE
Hello People
I am discovering that Fraud appears to have made it's way into the transportation industry.
Recently I was informed of this type of Fraud back on September 11th, 2008 and today I just received a call from an officer in Brantford indicating the same type of Fraud being committed out their way
This is basically how it works
a transportation broker/3PL and contracts motor carriers to haul freight on a customers' behalf. They are an intermediary. As you may be aware, the industry has bogus carriers setting up store fronts, getting all of the necessary licenses and a VOIP line, but not operating any equipment. They then farm our loads out to other carriers, collect our money (usually through a receivable purchase firm or factor), and then never pay the underlying carrier. They then disappear. The victims company often ends up paying twice in a situation like this because the subcontracted carrier who did the work has a common law claim against all parties up the line.
It is believed the carrier is farming our loads out at rates greater than we are paying them. This can only mean that they have no intention of ever paying the underlying carrier. Currently there are 7 of these loads outstanding.
If your company has fallen victim to this type of Fraud this is what you should do
1. Where did the Fraud occur? (jurisdiction)
2. Contact that Police jurisdiction and ascertain what their reporting policy is.
3. If the Fraud took place in Peel,contact me and I will set arrange for an intake interview between the person reporting the Fraud and our intake person.
4. The report will then be forwarded to our General Fraud investigators
Have a great day
Mike Plante #1064
Fraud Bureau -Organized Crime Unit
Peel Regional Police
905 453 3311 ext 3340
