Tuesday, March 4, 2003
OIG1-03
Contacts:
USDOT IG: Dave Barnes, 202-366-6312
FMCSA:
Dave Longo, 202-366-0456
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.
Consumers seeking to file a consumer household goods commercial complaint
with FMCSA can call a toll-free number 1-888-368-7238 (DOT-SAFT).
Complaints can be filed online at http://www.1-888-dot-saft.com/.
Information on consumer rights can be found at http://www.fmcsa.dot.gov/factsfigs/moving.htm.
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