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Virginia Trucking Company Execs Pleaded Guilty to Conspiracy Charges

May 17, 2017

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As part of a plea bargain, Virginia-based Beam Brothers Trucking and its owners and top officers have pleaded guilty to conspiracy charges in a case alleging that Beam Bros knowingly committed offences against the U.S. and Federal Motor Carrier Safety Administration regulations, according to a report in News Leader.com.

BBT is one of the largest contract carriers of mail for the U.S. Postal Service. It was accused of defrauding the U.S. by “impeding the lawful government functions of the Federal Motor Carrier Safety Administration, Department of Labor and USPS."

Owners Gerald and Garland Beam (CEO/president and vice president, respectively), along with Operations Manager Shaun Beam and CFO Nickolas Kozel, pleaded guilty to one misdemeanor count of conspiracy knowingly violate highway safety regulations, according to TV station WHSV. The company pleaded guilty to one count of conspiracy to commit an offense against the United States, falsification of records in contemplation of a federal matter. Beam Brothers Holding, the parent company of Beam Brothers Trucking, pleaded guilty to one count of conspiracy to commit wire fraud.

Originally the company and its owners and management were charged with conspiracy, falsifying records, false statements, wire fraud, wire fraud conspiracy, and money laundering conspiracy related to hours of service and labor violations in a 126-count indictment.

The company faces more than $3 million in fines. BBT must pay a fine of $250,000, pay back $2 million in fraudulently obtained proceeds, and $1 million in restitution to drivers who were not properly paid. The four senior officers at the company pleaded guilty to misdemeanor conspiracy charges. 

Over a 10-year period USPS paid BBT more than half a billion dollars. From June 1999 to March 2017, the company and its principals made trip schedules that violated hours of service regulations and falsified driver logs to hide the violations. FMCSA conducted two previous compliance investigations where enforcement action was taken due to HOS violations that endangered the traveling public.

BBT was also charged with violating the Service Contract Act, which requires federal contractors to pay its employees for all time worked. The Department of Labor investigated BBT two previous times, which resulted in back pay for drivers.

Comments

  1. 1. MC [ May 18, 2017 @ 05:12AM ]

    Misdemeanor conspiracy charges?!?! Are you f-ing kidding me?!?! A slap on the wrist comparable to a "time-out". Repeat offenders yet they were still able to retain the government contract after past violations, so it wouldn't surprise me if their government contract is still currently valid. These crooks will be back at it in a week.
    These kinds of crooks exist because the government allows it. They are unapologetic repeat offenders that are directly involved in committing and covering-up their offences and should be dealt with harshly. It's time to get rid of the "time-outs" and get out the paddle. These people should be in prison, the government contract voided, the company shuttered and assets sold off to pay the fines and the drivers their back pay. I'm sure there's no shortage of suitors hoping to scoop up BBT's contract.

  2. 2. Stringbean [ May 18, 2017 @ 02:44PM ]

    I didn't think they could ever be over hours. The drivers drive like a bunch of speed demon tourist. I have wondered where they get this bunch of drivers that drive that way. There is a mail hauler in Jersey that has a bigger bunch of what ever driving for them. I have seen them in road construction speeding and driving like idiots. There is a package outfit with contractors pulling their trailers that are no better. Is this ELD causing them to drive like that.

  3. 3. DE [ May 19, 2017 @ 08:57PM ]

    I think I read in Harrisonburg paper that Garland & Gerry can't have any federal contracts. Pretty minor convictions for what all they did. At least they shut down their current mail hauling business. They probably all have enough money that they never need to work again anyway..

  4. 4. Carlton [ May 20, 2017 @ 10:02AM ]

    the other day when I came down 81, I saw several of their trailers but was not their trucks pulling them. are these fines imposed on people ever collected. I don't see how they would have enough to pay them. they must be better off than I am.

  5. 5. ScooterAddict [ May 23, 2017 @ 10:47PM ]

    I agree with MC! So basically they stole from the drivers by falsifying information to look legal. If an employee falsified info to get more pay, at the amount that the company did, this would be a felony. The driver would be going to jail. The USPS using contractors is kinda like a scam. Everyone that works for them I would have to say in Union. So they contract it out so they don't have to pay high Union wages. The USPS benefits and so does the contractor. It should be law that all Govt contractors should have to post all numbers for workers to see. This should be under FOIA for all Govt involved services.

 

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