The owner of a New Jersey trucking company has been sentenced after pleading guilty to charges of embezzling millions of dollars of union benefit funds. Part of the sentencing is an order to pay $1 million in restitution.
In March 2012, Nicholas Farnsworth, owner of Rainbow Transport, was indicted for a large fraud scheme that stole money from projects funded by the U.S. Department of Transportation.
Several non-union New Jersey trucking companies were under the Rainbow Transport Corp. umbrella: Nicholas J, Happy Time, Marky OG and SDT Hauling. According to a U.S. DOT press release, these companies conspired with Greenwood 2, a trucking company represented by the Teamsters. The companies defrauded union benefit funds from employees on several projects.
Projects subcontracted to the companies included those funded by the Federal Transit Authority, including the Second Avenue Subway (SAS) project and the World Trade Center Transportation hub project.
According to the USDOT, the scheme embezzled approximately $11 million of union benefit funds.
On March 15, a U.S. District Court judge ordered Farnsworth to pay $1 million in restitution to the local Teamsters.
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