PROVIDENCE – The proprietor of an East Windfall car transport firm has been sentenced to 30 months in federal jail for falsifying U.S. Division of Transportation (DOT) – Federal Motor Service Security Administration (FMCSA) information, using one other individual’s private figuring out data to proceed to illegally function his auto hauling enterprise after being ordered to close down, fraudulently acquiring greater than $400,000 from numerous monetary establishments, and taking evasive steps to keep away from paying private earnings taxes owed to the IRS.
In keeping with data introduced to the courtroom, Michael Chaves, 41, proprietor of CAT Inc., continued to function a fleet of auto transport vans after having been cited for, amongst different issues, permitting drivers to function and not using a present or correctly labeled license; failing to keep up certifications that drivers have been medically capable of drive; failing to implement a driver alcohol or managed substances testing program; and permitting drivers to exceed the utmost variety of hours of driving allowed below the legislation.
Chaves utilized one other individual’s private figuring out data to proceed to illegally function the enterprise after FMCSA ordered the enterprise shutdown.
Moreover, Chaves fraudulently obtained greater than $400,000 from numerous monetary establishments by using schemes throughout which he obtained $332,000 in loans and funds from a number of banks and credit score unions by offering fraudulent incomes statements, tax returns, motorized vehicle buy contracts, and Division of Motor Automobile paperwork; triggered the fraudulent wire switch between monetary establishments of $72,864.28; and executed a scheme by submitting 15 fraudulent checks he created to an car vendor’s checking account from which he obtained $64,453.
Moreover, in keeping with data introduced to the courtroom, Chaves took a number of steps to evade earnings taxes by, amongst different issues, commingling enterprise and private bills; utilizing a verify casher to divert third-party earnings; creating fraudulent third-party checks and cashing them utilizing a verify casher, moderately than a financial institution; and sustaining roughly 15 completely different financial institution accounts utilizing not less than 5 completely different firm names.
Chaves pleaded responsible on August 22, 2020, to a ten-count data charging him with falsification of information, aggravated identification theft, five-counts of financial institution fraud, two-counts of wire fraud, and tax evasion.
Chaves was sentenced on Wednesday by U.S. District Court docket Choose William E. Smith to 30 months in federal jail to be adopted by three years of federal supervised launch, introduced Appearing United States Lawyer Richard B. Myrus Appearing Particular Agent in Cost of Inside Income Service Prison Investigation Ramsey E. Covington, and Appearing Particular Agent-in-Cost Daniel Helzner, U.S. Division of Transportation Workplace of Inspector Basic, Northeast Area.
A restitution order might be forthcoming from the courtroom. Along with restitution to be paid within the fraud schemes linked to the operation of his auto transport firm, the order will embrace restitution to be paid by Chaves to Amazon. It was alleged in courtroom paperwork that Chaves defrauded Amazon via theft of stock via falsely represented returns. It’s alleged in courtroom paperwork that Chaves ordered merchandise from Amazon and, at instances, changed the unique merchandise with lesser worth replacements, usually gadgets completely different than those he initially ordered, earlier than returning the packages to Amazon for refunds.
Chaves’ alleged Amazon refund scams have been found in the course of the investigation by Inside Income Service Prison Investigation and U.S. Division of Transportation Workplace of Inspector Basic into Chaves’ auto transport firm.
The case was prosecuted by Assistant U.S. Lawyer Dulce Donovan.
Appearing United States Lawyer Myrus thanks officers from the East Windfall Police Division and the Nationwide Crime Insurance coverage Bureau for his or her help within the investigation of this matter.