Beware of scammers! New scheme of trucking fraud

Logistics employee Joe Howard created a spreadsheet of shady companies to avoid.

Howard’s list includes about 500 firms which can be cheaters.

The alleged double-brokering network started with three large companies – All State Association from San Fernando, California, and Broadway Brokerage, and TriStar Brokerage, based in Glendale, California. Howard said these companies have disappeared from DAT’s Oregon load board in December after numerous complaints from brokers.

However, two new brokerage firms soon emerged, being owned by Massive 3PL Corp. headquartered in Edinburgh, Texas, and Fargo Freight Inc., La Crescenta, California.

All these offices created network of employees and fake MC numbers to pretend that they have a truck to receive the load from other brokers.

The scheme is like: once the legitimate carrier picks up the load, the alleged crooks seek payment from the broker they booked the load with for transportation services or request fuel advances from the brokers. Frequently, the legitimate trucking companies that transport the freight have little or no communication with the shippers that didn’t authorize the double brokering. 

Legitimate trucking companies usually have little or no communication with the shippers that didn’t authorize the double brokering.

Howard says that despite the fight against double-brokering fraud, new MC numbers are popping up every month in Southern California.