Interagency Crackdown on Trucking Industry Fraud Announced
Earlier this week, the White House Task Force to Eliminate Fraud launched what it called the most aggressive federal enforcement campaign in history targeting fraud in the commercial trucking industry. The joint announcement brought together the Department of Justice (“DOJ”), the Department of Transportation, the Department of Homeland Security, the Federal Motor Carrier Safety Administration (FMCSA), and the White House Task Force to Eliminate Fraud, along with eight U.S. Attorneys from across the Midwest. According to the DOJ press release, these and other law enforcement agencies form the “Joint Task Force Crossroads of America,” a multi-state partnership spanning Illinois, Indiana, Michigan, and Ohio between federal, state, and local agencies with the explicit aim to, “dismantle the fraud schemes harming American truckers, drivers and community safety” according to US Attorney General Todd Blanche. Immediately, the DOJ announced that it was shutting down 110 CDL training schools, citing their association with over 5,000 drivers who allegedly failed English language proficiency tests, with additional schools under investigation across 40 states, with allegation ranging from inadequate training facilities, unlicensed instructors, missing required documentation, to inadequate training facilities. The press release alleges that inadequate training at many of these facilities have been linked to 239 commercial motor vehicle-related fatalities, revealing the likely underlying reason for the unprecedented crackdown and criminal investigations.
Who is Under Investigation?
The press release details several named enforcement operations that are already underway, including investigations into illegal aliens who are subject to deportation already, those that the government believes are unlawfully holding commercial driver’s licenses, trucking companies suspected of employing B1/B2 visa holders for domestic cargo transport, state DMV employees alleged to have accepted payments to help individuals bypass CDL requirements, medical practitioners accused of improperly certifying medical exams for CDL applicants, and generally companies alleged to be engaged in labor exploitation and visa fraud.
As the Chicago Sun-Times reported two Illinois federal prosecutors, U.S. Attorney Steven Weinhoeft of the Southern District of Illinois and U.S. Attorney Greg Gilmore of the Central District of Illinois, were specifically named to the task force, meaning Illinois residents are likely to be thoroughly investigated over the coming months and years. In fact, the DOJ press release explicitly mentioned that the ICE Chicago Field Office has already conducted coordinated joint operations with Indiana State Police at weigh stations in the leadup to the announcement. The scale and coordination of this initiative, along with the inclusion of two U.S. Attorneys from districts within the state, signal that the federal government is not simply conducting regulatory audits, but they are looking to build criminal cases against individuals in the industry. These investigations can have serious repercussions for individuals and companies, both monetarily and to one’s potential freedom. Given the scale, focus, and actions already announced, there is the potential for large-scale prosecutions against individuals and entities which will likely carry significant penalties including prison and fines, even for so-called “minor participants.”
If you are connected to the trucking industry in any capacity and have reason to believe you may be the subject of a federal investigation, it is critical to act quickly and hire an experienced federal criminal defense attorney. Federal investigations often involve months or even years of investigation, including surveillance, data collection, and potentially witness interviews before charges are ever filed. By the time you receive a so-called “target letter” letting you know of the investigation or agents appear at your door to “talk” the government may already have a substantial case built and your freedom could be at risk.
