An Illinois man has been sentenced to three years in Illinois prison on May 4 after pleading guilty in December 2014 to wire fraud in an elaborate double-brokering scheme.
Dragan Simovski, owner of Freedom Transportation Inc. of Wood Dale, Ill., was indicted in US. District Court in April 2013. He was initially charged with wire fraud and mail fraud related to the double-brokering scam, which occurred over a four-month period from February 2008 to June 2008. As part of a plea agreement, federal prosecutors agreed to drop the mail fraud charge.
“Simovski admitted that he and other individuals were involved in a fraudulent double-brokering scheme, where they falsely represented that Freedom Transportation would use its own trucks to transport freight, knowing that Freedom had no trucks,” according to a press release issued by the U.S. Department of Transportation’s Office of Inspector General
According to court documents, Simovski has also been ordered to pay $532,000 in restitution to more than 80 trucking companies who actually delivered the freight, but were not paid by Freedom Transportation or a co-conspirator broker.
“As part of the scheme, Simovski would enter into contracts with companies on behalf of Freedom, promising to transport freight for those companies,” the release stated. “Simovski provided information about the freight loads to a co-conspirator broker knowing that the broker would find other companies to transport and deliver the freight.”
Simovski and the co-conspirator would then bill the customers as if they “had kept and performed the jobs, knowing that in many instances, they would not pay the companies that actually did the work.”
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