A driver for a Chicago freight hauler has pleaded guilty in federal court to one count of wire fraud in connection with a double-brokering scheme.
In exchange for a plea agreement, federal prosecutors agreed to drop an additional charge of mail fraud against the defendant, Dragan Simovski, who drove for Freedom Transportation Inc. of Chicago. Simovski was previously indicted in April 2013, and charged with wire fraud and mail fraud related to the double-brokering scheme, which cost an estimated $532,000.
Simovski admitted that he and other individuals were involved in a plot where they falsely represented that Freedom Transportation would use its own trucks to transport freight, knowing that Freedom had no trucks, according to a news release from the U.S. Department of Transportation’s Office of Inspector General.
As part of the scheme, Simovski would enter into contracts with companies on behalf of Freedom, promising to transport freight for those companies. Simovski provided information about the freight loads to a co-conspirator broker who would find other companies to transport and deliver the freight. Simovski and the co-conspirator agreed to bill the customers on behalf of Freedom as if they had kept and performed the jobs, and then keep the payments rather than disbursing them to the companies that actually did the work.
The wire fraud charge carries a maximum 20-year prison sentence and a maximum fine of $250,000, as well as a term of three years of supervised release.
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