March 30th, 2012
Kulwant Singh Gill, 53, of Antelope has been sent to prison for more than ten years for a scheme to defraud trucking companies out of payment for interstate freight deliveries.
U.S. District Judge Lawrence Karlton also ordered Mr. Gill to pay $443,388 in restitution to the victims.
Mr. Gill pleaded guilty in September 2009 to charges involving the scheme in two separate indictments.
According to court documents, he owned and operated companies authorized by the Department of Transportation to transport freight loads and to broker the interstate transportation of freight. He would use Internet-based “load-posting” boards to find freight loads that were available for transport and would offer to transport those loads for a fixed price. Then, he would re-post those loads on the same or different websites, acting as a broker seeking another trucking company willing to transport the freight.
In over 100 instances, Mr. Gill found trucking companies to deliver the freight, allowed them to make the deliveries, and then received payment from the original brokers who believed Mr. Gill had completed the deliveries himself.
But Mr. Gill then refused to pay the trucking companies that actually transported the freight, keeping the money for himself.
He was indicted in 2006, but continued the scheme while on pretrial release, which led to the 2008 indictment. In total, Mr. Gill was convicted on eight counts of wire fraud and five counts of making false statements to a government agency.
Article courtesy of Central Valley Business Times – http://www.centralvalleybusinesstimes.com/stories/001/?ID=20722