Trucking news and briefs for Thursday, Sept. 12, 2024:
HHG moving company employee gets prison time for scam
After being convicted on charges related to a fraudulent moving company scheme in late 2023, Andre Prince was sentenced by the U.S. District Court for the Eastern District of New York to 2 years in prison, 1 year of supervised release, forfeiture of $100,000 and a $100 special assessment.
Prince and co-defendant Kristy Mak were convicted on Dec. 11, 2023, of conspiracy to commit wire fraud.
The Department of Transportation Office of Inspector General (OIG) said It was proven at trial that, between at least January 2017 and August 2020, Prince and Mak worked for a number of moving companies that operated under various names, including Great Moving USA, Green Movers, and New City Moves.
Prince, a member of the sales team and supervisee of Mak, lured customers to these movers by posting fake reviews online and directing sales associates to low-ball the costs of moving their household goods.
OIG added that after customers signed a contract and, in some cases, after movers loaded customers' belongings on trucks, the movers would spring new expenses on them. Customers could not reach sales associates about the new fees, and the drivers threatened to hold customers’ goods hostage unless they paid the additional fees.
As a result of the fraudulent scheme, Prince and Mak, along with others, wrongfully obtained more than $3 million from over 800 victims.
Hawaii requests limited waiver from proof of citizenship rules
Following a similar request earlier this summer from the Oregon Department of Transportation, the Hawaii Department of Transportation is seeking a limited exemption from the CDL rules concerning acceptable proof of citizenship or lawful permanent residency for citizens of Freely Associated States (FAS) who now reside in Hawaii and wish to obtain a CDL.
The FAS are the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.
If granted the waiver, HDOT would be allowed to issue standard commercial learner permits (CLPs) and CDLs to FAS citizens, rather than issuing non-domiciled CLPs and CDLs.
Under the U.S.’ agreements with the FAS, citizens of the FAS may enter the United States as nonimmigrants, and, without obtaining a visa, they may remain in and work in the country indefinitely.
HDOT is requesting that FMCSA grant the waiver and allow it to issue CDLs and CLPs to citizens of the FAS in accordance with State procedures in 49 CFR 383.73(a) and (b). Ordinarily, a person who is not a U.S. citizen must present a valid, unexpired Permanent Resident Card. For a person who is a citizen of an FAS, HDOT would instead accept a valid, unexpired passport issued by an FAS and an Arrival/Departure Record, meaning an I-94 or I-94A form, to prove that the individual has entered the United States lawfully.
FMCSA will accept public comments on the request, which can be filed here, through Oct. 11.
[Related: Oregon wants limited waiver from proof of citizenship, residency rules]
Wisconsin Mack dealer expands with acquisition
Mack Trucks announced Tuesday that its long-standing dealer, Kriete Truck Centers, has expanded its operations through a strategic acquisition of La Crosse Truck Center in La Crosse, Wisconsin.
"We're encouraged by Kriete Truck Centers' continued growth and investment in the Mack brand," said Jonathan Randall, president of Mack Trucks North America. "The acquisition of the Mack franchise in La Crosse reinforces Kriete's commitment to providing exceptional products and support to our customers.”
Headquartered in Milwaukee and with 10 locations across Wisconsin, Kriete, with this acquisition, will now sell and service Mack trucks in both La Crosse and Mauston, reinforcing the brand’s commitment to supporting customers in the Upper Midwest, the company said. As part of this acquisition, LaCrosse Truck Center operations are being consolidated into Kriete’s current facility in nearby West Salem, Wisconsin.
“We’re super excited about the significant lift this brings to our ability to serve customers in this area,” said David Kriete, president and CEO of Kriete Truck Centers ADK. “Bringing our two amazing teams together – and in the process doubling our technician count and doubling our parts inventory – gives us a tremendous opportunity to enhance customer experience and grow market share.”
Kriete’s La Crosse-area location is also set to become a Mack Certified Uptime Dealer (CUD) by the end of the year. CUDs meet stringent requirements to amplify customer service and uptime. Redesigned service bays along with standardized workflows and processes at Mack Certified Uptime Dealers permit quicker repairs and improved customer service, Mack noted. “Uptime bays” reserved specifically for trucks requiring less than four hours of work for service and repairs also enable the rapid diagnosis and repair of vehicles, increasing dealership efficiency and improving customer ROI.
