The owner of a freight broker bond company was indicted in U.S. District Court, Los Angeles, Calif. late last month in connection with a trust fund scheme.
Bonnie Warren, owner of Oasis Capital, of Fullerton, Calif., was indicted following the Federal Motor Carrier Safety Administration referring allegations to the U.S. Transportation Department’s Inspector General that Oasis was violating FMCSA regulations by accepting money from property brokers for the establishment of trust funds and actually using the money for other purposes.
Trust fund monies are supposed to be maintained for the purpose of providing payments to shippers or motor carriers in cases where the broker fails to carry out its contract to provide transportation services by authorized motor carriers, according to the Inspector General’s office.
It claims Oasis solicited brokers and accepted payments in the amount of $10,000 each to establish trust funds only to use the monies for other purposes.
FMCSA suspended Oasis' privileges to file trust funds on behalf of brokers and began the process of revoking the approximately 500 Oasis trust funds on file with the agency.