June 11, 2021
Rhode Island Trucking Company Owner Ordered To Pay $632,000 in Restitution
On May 21, 2021, the U.S. District Court for the District of Rhode Island issued an amended sentencing judgement for Michael Chaves, owner of CAT Transportation Inc. The court ordered Chaves to pay $424,598 in restitution to victims and $207,270 to the Internal Revenue Service (IRS) related to a tax evasion count. On March 10, 2021, Chaves was sentenced to 30 months’ incarceration, 3 years’ supervised release, and a $1,000 special assessment. Chaves used the identification of another individual, without that person’s knowledge, to falsify FMCSA registration documents to hide an affiliation with a company under a Federal out-of-service order. Chaves also generated false documents to show compliance with FMCSA rules and regulations.
According to information presented to the court, Michael Chaves, 41, owner of CAT Inc., continued to operate a fleet of auto transport trucks after having been cited for, among other things, allowing drivers to operate without a current or properly classified license; failing to maintain certifications that drivers were medically able to drive; failing to implement a driver alcohol or controlled substances testing program; and allowing drivers to exceed the maximum number of hours of driving allowed under the law.
June 9, 2021
Individual Sentenced to 9 Years in Federal Prison for Series of Fraud Schemes
On May 25, 2021, the U.S. District Court for South Carolina convicted and sentenced Cameron Banks to 9 years’ incarceration and 3 years’
supervised release. In August 2019, Banks pleaded guilty to multiple fraud schemes, including the falsification of records in
Federal investigations with intent to impede, obstruct, and influence FMCSA’s process of investigation and proper administration.
The investigation revealed that beginning in 2015 and continuing into 2018, Banks submitted requests to DOT to receive authority to
operate commercial vehicles. The requests contained false information and did not disclose Banks’ relationships with other
DOT-OIG conducted this investigation with the IRS–Criminal Investigative Division and the Federal Bureau of Investigation.